Pakistani national pleads guilty to illegal export of nuclear material

A Maryland-based Pakistani businessman has pleaded guilty to illegally exporting nuclear-related materials to restricted entities back home and faces a maximum sentence of five years and a USD 250,000 fine.

46-year-old Nadeem Akhtar's conviction before a US court yesterday is the product of a "vigorous, cooperative joint-agency investigation focused on denying and disrupting the illegal  export of controlled nuclear technology destined for Pakistan," Eric L Hirschhorn, Under Secretary of Commerce for Industry and Security, said.

According to his plea agreement, Akhtar, a lawful permanent resident of the US, from October 205 to March 2010 used his company Computer Communication USA (CC-USA) to obtain or attempt to obtain radiation detection devices; resins for coolant water purification; calibration and switching equipment; attenuators; and surface refinishing abrasives for export to restricted entities in Pakistan.

The value of these items, which required export licences due to their use in both commercial and military and nuclear applications, exceeds USD 400,000.

The restricted entities in Pakistan to which these items were being sent included organisations of concern to the US which were acting contrary to the national security or foreign policy interests of America, the Justice Department said.

Among these restricted entities were Pakistan's Space and Upper Atmosphere Research Commission; and the Pakistan Atomic Energy Commission (PAEC) and its subordinate entities such as the Chasma Nuclear Power Plant I in Kundian and the research reactor maintained by Pakistan Institute of Engineering and Applied Sciences, a constituent institution of PAEC in Nilare specialising in nuclear-related research and development.

Exports of commodities to these entities were prohibited in absence of issuance of an export license.

According to the Justice Department, Akhtar attempted to evade export regulations and licensing requirements by undervaluing and falsely describing the items being exported; failing to reveal the true end-user by using third parties and/or real and fake business entities/locations in Pakistan, Dubai and the United States.

He used individuals in Illinois and California to procure items for him under false pretences; shipping items to his residences in Maryland so it would appear as though his company was the actual purchaser/end-user of the items; and transshipping the items from the US through the United Arab Emirates (UAE).

The Justice Department said Akhtar took direction from the owner of a trading company located in Karachi, who had business relationships with governmental entities in Pakistan.

This individual would obtain orders for nuclear-related and other commodities from Pakistani government entities identified by the Justice Department, and then direct Akhtar as to what commodities to purchase in the United States for export to Pakistan, and the methods to be used to conceal the true nature, value and end-user of the items.

Akhtar would then negotiate prices with manufacturers and suppliers of commodities sought in the US and arrange for shipment of the commodities. His co-conspirators included individuals in Pakistan, Dubai, UAE and New York associated with the owner of the Pakistani trading company.

The owner usually paid Akhtar a commission of five to seven-and-a-half per cent of the cost of each item Akhtar obtained for export from the US, the Justice Department said.

Akhtar faces a maximum sentence of five years in prison and a USD 250,000 fine, and remains detained in federal custody. His sentencing is scheduled for January 6, 2012.