Three Convicted in United States for Selling Microchips to Russian Spies

News

Three employees of Texas-based firm Arc Electronics Inc. have been convicted of illegally supplying millions of dollars’ worth of high-tech electronics to Russian military and spies.

October 28, 2015

Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were first indicted in October 2012 along with eight colleagues. Posiblov was also charged with money laundering offenses.

On Monday all three were found guilty of conspiring to export, and illegally exporting, US$ 30 million of sophisticated microelectronics that can be used in spying and arms technology.

Arc Electronics was found to be a front company masquerading as a traffic lights manufacturer.

In the month-long trial a New York district court heard that as staff, the trio shipped analog-to-digital converters, memory chips, microcontrollers and microprocessors to Russian government agencies in contravention of US export and arms laws.

The components, many of which are not manufactured domestically in Russia, can be used in radar and surveillance systems, missile guidance systems, and detonation triggers, according to the US Department of Justice.

Evidence at trial included a letter from a tech laboratory at Russia’s domestic intelligence agency the FSB, complaining that parts they had received from Arc were faulty.

John Carlin, assistant attorney general for national security, said the defendants had “[jeopardized] our national security”.

Arc’s CEO, Alexander Fishenko – a US citizen since 2003 – pleaded guilty in September to charges including acting as an agent for the Russian government. He has not yet been sentenced.

Posobilov was Arc’s procurement director, Abdullaev a shipping manager, and Diatlova the firm’s saleswoman.

Abdullaev and Diatlova face up to five years in prison for conspiracy convictions, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act and the Arms Export Control Act.

Posobilov also faces up to 20 years in prison for money laundering conspiracy.