Russian High-Tech Export Scandal Produces 8 Arrests in Houston

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."

Silly Russians

[Required Snark]

Don't they realize that all "US" electronics are made in China? Why are the going through all the trouble to illegally export gear from the US when they can get it directly from the manufacturers in Asia? They are still stuck in a Cold War mind set, where the US is the enemy and Asia is not the major source for technology. They need to stop living in the past.

Nothing is actually made in the US any more. The big bucks here are in intellectual property and patent litigation: Samsung vs Apple.

The Chinese are ahead of the curve on this. They know the best way to gain advantage is to use cyber-theft to steal IP. It is very cost effective and produces quick results.

Unlike export controls, there is no national policy on protecting IP online. Every time someone in the government (Democrats mostly) brings it up business interests scream about government interference, needless regulations and creeping bureaucracy.

If something is stolen via cyber-theft, their is no legal consequence. Even in the military sector, none of the big defense contractors ever are fined or loose contracts because they leak classified information like a sieve.

Heck, now with the complete lack of controls on campaign contributions it would be cheap to insure that the current online vulnerabilities remain the norm. All you have to do is give some money to the right elected officials in Congress, and stealing US technology will remain as easy as taking candy from a baby.

The Russians need to get with the program and copy what the Chinese are already doing. They should be spending more money on PACs, and stop wasting effort on smuggling.