NEW YORK (Reuters) – Federal prosecutors have filed a request for a criminal offence facts have to be accused by a New York-based company, with exposure to the U.S. government, and private clients, safety risks due to the illegal import and sale of surveillance equipment by China.
The cost-at-Aventura Technologies, Inc., which is located in Commack, New York, New York, and seven current and former employees, made public on Thursday in federal court in new york city. Six people were arrested, including Jack Cabasso, the man accused of running the scheme.
Cabasso was ordered jailed without bond after a brief appearance in court, while the other five, including Cabasso’s wife, Frances Cabasso, have been released. An elegant and attorneys ‘ fees for the Cabassos could not immediately be reached for comment.
Prosecutors said the defendants falsely told customers that Aventura products are manufactured in the United States rather than imported, mainly from China, in a scheme that ran from 2006 until this month. Some of these products are transported in well-known cybersecurity risks, according to the officials of the ministry of justice.
The company’s major clients are U.S. government agencies, including the Army, Navy, and air force, although it has also been sold to private companies, of which approximately $88 million as of 2010, prosecutors said.
Founded in 1999, is an Elegant describes itself on its website as a “true” single-source “manufacturer providing security hardware, software, and peripheral equipment to government, military and commercial customers.
According to the complaint, in Aventura, are sometimes sold in Chinese imports, with a false “Made in the U. S. A.” labels have been affixed to, or displayed on, the packaging.
The chief Prosecutor of the u.s., Richard’donoghue said that the government has started the investigation into the alleged scheme after a member of an Air Force security unit, and saw a picture of one of the Chinese security forces badge, and the software of the device.
The prosecutors said an Elegant is reported to have sold $20.7 million of equipment from the U.S. government through the end of 2018, through the us General Services Administration) contract.
They are also accused of being an Elegant, misrepresentation of oneself as a woman-owned small business to win government contracts reserved for companies like that, never list of Cabasso’s wife, Frances, and the owner of the company and of the chief executive.
The complaint contained statements which, according to the prosecutor, to show that the defendants knew of the illegal importation.
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He cited an instant message to the suspect He Matulik, director of international sales for a colleague to say, ” I’m going to go to china because I need to know what we are selling and have to make the source of a lot of things,” and, “jack, don’t have the time, and we don’t really know what we have to sell it.”
Prosecutors said in court papers that the Jack Cabasso, it should not be released on bail because of his wealth, international connections, and a “long criminal history, including a conviction for tampering with a jury in a previous fraud case against him, is indicative of a high risk that he will flee.
They said that they had seized about $3 million on a luxury yacht with him, but believe he has any other assets offshore.
Reporting by Brendan Pierson and Jonathan Stempel in New York; editing by Jonathan Oatis and Bill Berkrot