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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."
At least he wasn't smuggling it to the Muzzies
and allow Communist infiltration, Communist indoctrination, Communist subversion and the international Communist conspiracy to sap and impurify all of our precious microchips.
Microelectronics that are "components of radar, weapons guidance, and detonators". So, a DSP? A microcontroller? FPGAs?
As if none of that shit is manufactured in asia anyway. Conspirancy to smuggle? More like tax fraud under an heroic excuse.
..Houston, we've had a problem.
Why the middle man - why not smuggle the stuff directly from China?
Next time take a page from the Chinese and just convince the target country to manufacture the components in your country in the first place.
What political party do you join when you don't like Bible-thumpers *or* hippies?
I for one, refuse to believe that we actually have any technology left which is advanced beyond that available in countries where they actually make things.
We let the republicrats job-jack all of our manufacturing overseas, and now we no longer have a manufacturing base left, which means nobody getting annoyed at problems in production, which means no innovation.
This story is pure propaganda as far as I can tell. We don't even make the best culture any more, as Gangnam style has proven. We just do knockoffs.
Please post all of you "In Soviet Russia" jokes under this thread. I'll start off:
In Soviet Russia, electronics export YOU.
Is it any news that the Russians 'borrow` a lot of their tech from the west. I understand you could get such 'advanced microelectronics` in a games console. Wasn't it the case, some time ago, that a middle-eastern country was going round buying up games consoles for the chips?
AccountKiller
Next time take a page from the Chinese and just convince the target country to manufacture the components in your country in the first place.
Hmmm, sounds like you should brush up on your export control laws. From the most basic concepts:
WHAT IS AN EXPORT?
Any item that is sent from the United States to a foreign destination is an export. “Items” include commodities, software or technology, such as clothing, building materials, circuit boards, automotive parts, blue prints, design plans, retail software packages and technical information.
How an item is transported outside of the United States does not matter in determining export license requirements. For example, an item can be sent by regular mail or hand-carried on an airplane. A set of schematics can be sent via facsimile to a foreign destination, software can be uploaded to or downloaded from an Internet site, or technology can be transmitted via e-mail or during a telephone conversation. Regardless of the method used for the transfer, the transaction is considered an export. An item is also considered an export even if it is leaving the United States temporarily, if it is leaving the United States but is not for sale (e.g., a gift), or if it is going to a wholly-owned U.S. subsidiary in a foreign country. Even a foreign-origin item exported from the United States, transmitted or transshipped through the United States, or being returned from the United States to its foreign country of origin is considered an export. Finally, release of technology or source code subject to the EAR to a foreign national in the United States is “deemed” to be an export to the home country of the foreign national under the EAR.
Emphasis mine. So how are you telling the Chinese what to make if you're not shipping them the schematics? If you know a company that is manufacturing such sensitive controlled electronics overseas I believe you are legally obligated to report it to your local Office of Export Enforcement branch.
My work here is dung.
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.
Why is Snark Required?
or killed the secretary will disavow any knowledge any knowledge of your activity.
Good luck, Jim.
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...
0 1 - just my two bits
... Russia, that is, has gone rogue. The whole state is corrupt. This however looks like perfectly normal spying and the sort of thing they have always done, and vice-versa.
Don't start complaining until they use radiological weapons on your streets, like they did to us...
I have been a user for about 10 years. This ends Feb 2014. The site's been ruined. I'm off. Dice, FU
It's unclear from the article which specific laws, acts, regulation were broken.
I am going to go on a limb here and assume that the ITAR or EAR or some other legal/regulatory requirement were transgressed.
ITAR and EAR violations are clear no nos and will get you in trouble.
"The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers, and microprocessors. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems, and detonation triggers. "
Really? You're saying they can used in detonation triggers? Like an NE555 can? Does any of this commodity stuff have any export restrictions on it?? No?
"Russia does not produce many of these sophisticated goods domestically."
Yes it does, e.g. Cutting edge processor is the ARM chip, which is a UK design and is licensed and made in Russia too:
http://mobile.arm.com/about/newsroom/23893.php
And China makes the bulk of USAs day to day boring stuff like A to D converters:
http://www.alibaba.com/countrysearch/CN/analog-to-digital-converter.html
Samsung makes the fastest SRAM, (they're Korean BTW)
http://www.samsung.com/global/business/semiconductor/
Presumably this is timed just after the Houston Fusion center in particular was implicated in talking complete terrorist BS?
At least he wasn't smuggling it to the Muzzies
No, Rosoboronexport handled that part.
Look at the bright side, they might use them against Chechnya, Islam is our common enemy
I think that story (using Nintendo chips as missile guidance?) was totally debunked in the end and it was suggested it may have been dreamed up along with the majority of the illegal weapons, to justify a war that was already desired
I have been a user for about 10 years. This ends Feb 2014. The site's been ruined. I'm off. Dice, FU
Starting in the 1970s, Russian immigrants came to this area in great numbers. They are bordered on the South by a large Hispanic population, on the East by a large East Asian and Indian population, and on the West by rural communities and exburbs.
I wasn't aware Foxconn started up a plant in the USA.
We dont hang traitors as much as we used to.
Alexander Fishenko, no kidding? I realize that not every Russian is of Slavic origin, but this is just too thin-veiled Russification or perhaps Ukrainization of a Western (Germanic? English?) family name. Naturalized Russians of Western origin I've heard of have their original family names, perhaps only transcribed, but without Slavic suffixes.
Col. Ripper was the one who was upset about the Commies impurifying our manly juices microchips with fluoride.
(Side note: HF is actually used in some chip manufacturing.)
Best Slashdot Co
It's interesting that this article didn't make the front page of latimes.com, washingtonpost.com, or nytimes.com. In 1987, when Toshiba sold milling machines to Russia for submarine propeller manufacture, it was a huge controversy. I believe we are living in a safer world.
A/D converters, processors, SRAM, Microcontrollers. Basic chinese mass market kit.
The faulty chips seems to be these ones (from the part number):
http://www.alldatasheet.com/datasheet-pdf/pdf/81901/AD/ADG819BRT.html
It's a CMOS single pole, double throw switch. Yes, seriously, takes me back to my childhood! 74LS00's an all.
Read the indictment:
http://federalcrimesblog.files.wordpress.com/2012/10/letter-to-the-court-moving-for-a-permanent-order-of-detention.pdf
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
working.”
A common misguided American assumption. When we get out-competed and outsmarted that must because the competitor stole our tech... Get a grip...
How hard can missile guidance be? The software is tricky, but it doesn't demand a great deal of computing power. You could probably run it on a few PICs, with a skilled coder.
... I would like to know if what they stole is actually of use? Or is it some kind of commercial grade stuff that you can buy in Radio Shack anyway, and they just pretended to run some super secret covert ops to ship it over to get funding? (given the level of corruption, this wouldn't be unusual or unprecedented)
I mean, c'mon, I pay taxes which are used to fund this stuff, and then they squander them on the likes of Anna Chapman.
"... A Russian foreign ministry spokesman has denied there were any intelligence connections in the affair." To be busted obviously no inteligence was involved.
Russia has the capability to make its own microprocessors. I very much doubt that any of this gear was intended for official military uses, and it seems very unlikely that the Russian military would ever allow it.
I understand that the components of recent Russian radar systems like the NIIP Tikhomorov EASA system (including GaAs Tx/Rx modules), are all domestically manufactured, as is the multi-core VLIW CPU at the heart of its computer system.
There are a few instances of usage of commercial grade FPGAs in Russian military equipment, like Almaz-Antei missile systems, but nothing exotic that can't be bought from any electronics catalogue.
This sounds more like pre-election propaganda from the ruling US regime.
But the US can still nuke anyone from the orbit, so the money was not well-spent in the first place.
People keep saying this, but it never happens; the US keep sending conventional troops places to get shot up instead.
I say put up or shut up.
I think that story (using Nintendo chips as missile guidance?) was totally debunked in the end and it was suggested it may have been dreamed up along with the majority of the illegal weapons, to justify a war that was already desired
Particularly when it is well known that you can defeat missiles using that kind of control system with something as simples as a track ball and three buttons. Here's a picture of the operator console for such a system: http://cdn.chud.com/a/a2/a23bbcb6_11011101.jpeg
Bhopal, India? http://en.wikipedia.org/wiki/Bhopal_disaster
1988 Iraq, Project Babylon. Objective: to build a supergun and eventually shoot stuff into orbit starting with 'Big Babylon'.
Basically, it was a wacky idea. So the idea of using 4k PS2s (another wacky idea) shouldn't be scoffed at too. We are talking about Saddam Hussein. He wasn't a level headed kind of guy. He was a dangerous guy with delusions of grandeur. Good riddance.
Life is not for the lazy.