Eleven Charged With Illegal Military Exports to Russia
By Christie Smythe – Oct 3, 2012 12:04 PM ET
The U.S. charged 11 people with involvement in an illegal scheme to export high-tech microelectronics to Russian military and intelligence agencies.
The case is “the first-ever criminal prosecution of a large-scale Russian military procurement network operating within the United States,” said Robert Nardoza, a spokesman for Loretta Lynch, U.S. attorney in Brooklyn, New York. A federal indictment dated Sept. 28 was unsealed today.
One of the accused is Alexander Fishenko, an owner and executive of both the Houston-based export firm Arc Electronics Inc. and a Russia-based procurement firm, Apex System LLC. He is also charged with operating as an unregistered agent of the Russian government, the Justice Department said.
The microelectronics involved are subject to strict government controls, the Justice Department said. They can be used in radar and surveillance systems, weapons guidance systems and detonation triggers, according to the government. Arc shipped at least $50 million worth of microelectronics and other technology to Russia without an export license, the government said in a memorandum dated today.
Eight of the individuals have been arrested and are expected to appear in federal court in Houston today, Nardoza said.
The defendants if convicted face as long as 20 years in prison on the most serious charges, violating the International Emergency Economic Powers Act and the Arms Export Control Act.
The case is U.S. v. Fishenko, 1:12-cr-626, U.S. District Court, Eastern District of New York (Brooklyn).
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