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Russian High-Tech Export Scandal Produces 8 Arrests in Houston 83

Penurious Penguin writes "Millionaire Alexander Fishenko, owner of US-based Arc Electronics Inc, and seven others have been arrested in Houston Texas, with a total of 11 indicted in a conspiracy to smuggle advanced microelectronics from the U.S. to Russia. The technology allegedly involves components of radar, weapons guidance, and detonators. Amongst the evidence are accounting records indicating notable similarity between the revenue of Arc Electronics and the Russian Federation's defense spending; intercepted phone calls and emails; and a letter to Arc Electronics from a Russian domestic intelligence lab complaining of defective microchips . A Russian foreign ministry spokesman has denied there were any intelligence connections in the affair."
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Russian High-Tech Export Scandal Produces 8 Arrests in Houston

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  • by Cid Highwind ( 9258 ) on Thursday October 04, 2012 @09:27AM (#41548193) Homepage

    Yes, Iraq supposedly bought 4000+ Playstation 2s to model nuclear detonations, there was at least one slashdot story [] about it.

    Of course, if you believe what the western press reported about Iraqi weapons programs in that era, I have a very nice bridge and 400 kilos of yellowcake Uranium to sell you...

  • by Anonymous Coward on Thursday October 04, 2012 @11:11AM (#41549351)

    A/D converters, processors, SRAM, Microcontrollers. Basic chinese mass market kit.

    The faulty chips seems to be these ones (from the part number):

    It's a CMOS single pole, double throw switch. Yes, seriously, takes me back to my childhood! 74LS00's an all.

    Read the indictment:

    Better still read the ACTUAL quotes from the people accused, removing the FBI inuendo:

    Fishenko writes: “in a more presentable format”
    FBI writes:
    "For example, on September 24, 2009, Fishenko engaged in
    an email exchange with an employee of a Russian procurement firm.
    Fishenko requested that the employee get an end user document
    from a Russian factory “in a more presentable format” The next
    day, the employee responded and attached a new end user
    statement, explaining, “This letter is pure forgery. I made it
    using a copy machine.”"

    Fishenko writes: “our person,‘zakinuty kazachok."
    I write: zakinuty kazachok translates as "abandoned cossak", I don't know if it means spy, Google translate doesn't say.
    FBI writes:
    "Fishenko has referenced his ties to Russia’s
    intelligence services. For example, in an October 24, 2011
    conversation with another Russian electronics broker, Fishenko
    and the broker discussed an individual who worked at the broker’s
    firm who, they believed, had been an intelligence officer with
    the FBI. Fishenko stated that the man was “our [type of] person,
    ‘zakinuty kazachok.’” “Zakinuty kazachok” (literally “thrown
    Cossack”) is a Russian colloquialism for “spy” or “secret agent.”

    Posobilov writes: "ake sure that those are fishing boats, and not fishing/anti-submarine ones... Then we’ll be able to start working."
    I write: Russian military have Glosnass GPS, they don't use civilian US GPS that doesn't support GLOSNASS, because civilian US GPS can be degraded at will. So we know for sure this wasn't for military use.
    FBI writes:
    "Posobilov has also made explicit statements that
    demonstrate his intent to evade export laws and defraud
    suppliers. For example, on April 4, 2011, Posobilov exchanged
    emails with a U.S. vendor regarding an order for certain parts.
    Posobilov indicated that the parts were for “fishing boat radar
    equipment” and provided the name and address of a Russian end
    user. The vendor informed Posobilov that the requested parts
    required an export license for Russia and indicated that,
    therefore, the vendor would need a more complete end use
    statement. Posobilov then forwarded this exchange to the Russian
    procurement firm, instructing them to coach the end user to
    complete the end use declaration in such a manner as to
    facilitate obtaining the controlled component. Posobilov wrote,
    “[m]ake sure that those are fishing boats, and not
    fishing/anti-submarine ones... Then we’ll be able to start

  • Re:Silly Russians (Score:4, Informative)

    by mcgrew ( 92797 ) * on Thursday October 04, 2012 @12:18PM (#41550157) Homepage Journal

    Nothing is actually made in the US any more.

    Except Construction equipment [], tractors [], cars, trains, roads, houses, commercial buildings, food, copper piping and tubing [], drugs and other chemicals (ever hear of Monsanto?), concrete... No, we make nothing here.

    Gees, guys, wtf?

All laws are simulations of reality. -- John C. Lilly