Massachusetts

District of Massachusetts | Former Cambridge Man Sentenced for Wire Fraud and Illegally Exporting Defense Articles to Turkey

BOSTON – A former Cambridge man was convicted in Boston today of illegally exporting defense engineering data to foreigners in Turkey in connection with the fraudulent manufacture of parts and components used by the US military. Some of the parts were later found to be inferior and unfit for military use.

Arif Ugur, 53, was sentenced to 33 months in prison and two years of supervised release by US District Court Judge Nathaniel M. Gorton. Under an order issued by Judge Gorton, Ugur, who is a lawful US permanent resident in Turkey, agreed to return to Turkey after serving his sentence. On August 10, 2022, Ugur pleaded guilty to two counts of wire fraud, two counts of violating the Arms Export Control Act, and one count of conspiracy to violate the Arms Export Control Act.

In 2015, Ugur formed Anatolia Group Limited Partnership (Anatolia), a Massachusetts-registered domestic limited partnership, and was the sole managing partner. Beginning around July 2015, Ugur offered and received numerous orders to supply the United States Department of Defense (DOD) with various parts and components intended for use by the US military. Many of these contracts required the parts to be manufactured in the United States. In both the bids submitted to the DOD and subsequent email communications with DOD representatives, Ugur falsely claimed that Anatolia manufactured the parts in the United States. In fact, Anatolia was a front company without any production facilities. Unbeknownst to DOD, Ugur contracted with a company in Turkey to manufacture the parts and then passed them on to DOD as if they had been manufactured by Anatolia in the United States.

Because they were not manufactured in accordance with contacts in the United States, Ugur did not allow the DOD to inspect the parts prior to delivery to the US military. Many of the parts were inferior and some could not be used at all.

To enable the Turkish company to manufacture the parts, Ugur shared technical specifications and drawings of the parts with his co-conspirators abroad, some of whom were employees of the Turkish company. Ugur also gave his foreign co-conspirators access to the DOD’s online library of technical specifications and drawings. Because of their military applications, many of these parts have been designated as defense articles under the International Traffic in Arms Regulations (ITAR) and the United States Munitions List (USML). Therefore, an export license was required to export the parts and associated technical data (blueprints, specifications, etc.) from the United States to Turkey. Ugur was aware of these restrictions, but still exported technical data controlled under ITAR and USML to employees of the Turkish manufacturer without an export license.

US Attorney Rachael S. Rollins; Patrick J. Hegarty, Department of Defense Special Agent in Charge, Office of the Inspector General, Defense Criminal Investigative Service, Northeast Field Office; Matthew B. Millhollin, Special Agent for Homeland Security Investigations in Boston; and Rashel Assouri, Special Agent in Charge of the US Department of Commerce, Office of Export Enforcement, Boston Field Office, announced today. Assistant US Attorneys Jason A. Casey and Timothy H. Kistner of Rollins’ National Security Unit prosecuted the case.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button