A B.C. man is in custody in Washington state, accused of acting as a middleman in a years-long conspiracy to smuggle U.S. technology through Canada in a bid to bypass laws meant to limit Pakistan’s nuclear ambitions.
According to an indictment filed in U.S. District Court in Minnesota, Mohammad Jawaid Aziz and two unnamed co-conspirators allegedly obtained thousands of dollars worth of banned equipment for Pakistan’s military and weapons programs through a series of front companies.
The court documents claim Aziz — also known as Jawaid Aziz Siddiqui — was targeted in a sting by an undercover U.S. government agent who acted as an employee of a Minnesota firm involved in the sale of mechanical devices known as linear actuators.
The undercover operation and the offences in the indictment date back to 2019 — but U.S. authorities say Aziz was not arrested until March 21, while he was attempting to cross from B.C. into Washington state, where he is currently being held in custody pending transfer to Minnesota.
In a statement, the U.S. Department of Justice claims Aziz operated “an illicit procurement network” from 2003 to March 2019 through a Surrey-based company named Diversified Technology Services, which he ran out of his home.
“The purpose of the network was to obtain U.S.-origin goods on behalf of prohibited entities in Pakistan that were associated with the country’s nuclear, missile, and Unmanned Aerial Vehicle (UAV) programs,” the statement says.
“[Aziz] and his co-conspirators worked to conceal the true end-users of the goods from U.S. companies, often using front companies and transshipping goods through third countries to evade detection.”
Buying ‘dual use’ goods for restricted companies
Aziz is charged with conspiracy to violate the U.S. International Emergency Economic Powers Act and the Export Control Reform Act.
None of the allegations have been proven in court.
According to the indictment, the 67-year-old is a citizen of Pakistan and Canada. His two alleged co-conspirators are Pakistani nationals linked to Karachi-based International Trading Company, a firm allegedly used “to procure U.S. goods for prohibited entities in Pakistan.”
The court documents detail restrictions enacted by the U.S. since Pakistan first tested a nuclear device in 1998 meant to keep “dual-use” U.S. goods out of the hands of organizations involved in the development of nuclear weapons, missiles and drones.
A number of Pakistani government agencies and private laboratories have been placed on the so-called ‘Entity List’ — including the Pakistani Atomic Energy Commission in Islamabad.
“It was part of the manner and means of the conspiracy that International Trading Company would receive and process requests for quotes and purchase orders from organizations in Pakistan on the Entity List or those organizations’ front companies,” the indictment reads.
“Through Diversified Technology Services, along with other businesses he used for similar purposes, [Aziz] would approach U.S. companies about procuring the goods requested by the restricted Pakistani entities through International Trading Company.”
U.S. prosecutors claim the goods would either be shipped directly to Pakistan or through third countries. Aziz also allegedly “would sometimes receive the goods at his residence in Canada.”
‘They have a commercial application’
The court documents include a detailed list of hundreds of thousands of dollars worth of items Aziz and his alleged co-conspirators are accused of purchasing, including thermal conductivity units, a digital video microscope and a centrifugal pump.
The government sting took place in 2019 as part of what was supposed to be the purchase of around $5,520 worth of goods that were allegedly being sought by a front company for Pakistan’s National Development Complex.
The court documents claim that Aziz contacted a Minnesota-based firm to secure the purchase, which was supposed to be delivered to his address in Surrey.
But unbeknownst to Aziz, an undercover agent took over correspondence about the order, telling Aziz the goods had been seized at the border ” due to a government hold, probably Customs” and noting that a possible reason was “smuggling and export contrary to the law.”
The agent asked Aziz what the intended application of the technology was and was allegedly told “they have a commercial application.”
“They have cancelled the order now due [to] this delay,” Aziz allegedly wrote.
“Please keep the items with you once released. We may find another customer.”
The penalty for the charges is 20 years in prison.
