Business Owner Accused Of Illegally Exporting Arms To Ukraine

CHICAGO — A Buffalo Grove-based business owner has been indicted on federal criminal charges for illegally exporting gun parts and other defense articles from the United States to a company in Ukraine. According to the indictment, released Friday by the U.S. Attorney's Office (Northern District of Illinois), Glenn Stepul, 33, distributed horizontal directional drilling equipment through his business.

Stepul pleaded not guilty to all charges during his arraignment Thursday before U.S. District Judge John Robert Blakey in Chicago, according to the U.S. District Attorney's Office. Stepul, who formerly lived in Wheeling and now lives in Miami Beach, Florida, is being represented by Steven Robert Shanin, out of Chicago. Patch has reached out to Shanin for comment on this story.

From 2014 to 2016, according to the indictment, Stepul conspired with an Ukranian resident — Andriy Yakin — and an unindicted co-conspirator in Ukraine, to violate the Arms Export Control Act. The trio exported, or attempted to export, pistol slides and stainless steel gun barrels from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of State. Stepul, Yakin, and the unindicted co-conspirator also conspired to violate the International Emergency Economic Powers Act by exporting or attempting to export rifle scopes and night-vision cameras from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of Commerce, the indictment states.

The charges in the indictment allege that Stepul commingled and concealed some export-controlled items inside shipments of drilling equipment sent to Ukraine. One such shipment was intercepted by customs officials in Lviv, Ukraine, in Sept. 2014, the indictment states. Stepul had completed a customs declaration falsely describing the items inside the parcel as "household goods," "cosmetics," "toys," "stationery," and "cassettes," the indictment states.

The indictment charges Stepul and Yakin, 38, of Poltava, Ukraine, with conspiracy to violate the AECA and IEEPA and knowingly impede and obstruct the functions of the Commerce and State Departments. Stepul also faces additional export-control, smuggling, and false statement charges. Blakey scheduled a status hearing for 1 p.m. Dec. 16.

Yakin is believed to be residing in Ukraine, and a warrant for his arrest has been issued.