Three former Arc Electronics employees convicted of illegal exports to Russia

The Justice Department on Monday said Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of illegally exporting controlled microelectronics to Russia.

   The Justice Department on Monday said Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of all counts, including conspiring to export and illegally exporting controlled microelectronics to Russia.
   Posobilov was also convicted of money laundering conspiracy.
   These defendants, all of whom worked at Arc Electronics Inc. (Arc), a Houston-based company, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pleaded guilty to related charges, the Justice Department said.
   “These defendants were key players in a sprawling scheme to illegally export sophisticated technology to Russia,” said U.S. Attorney Robert L. Capers of the Eastern District of New York, in a statement. “Through lies and deceit, the defendants and their co-conspirators sold over $30 million of microchips, much of which was destined for Russian military and intelligence agencies.”
   According to court documents, the alleged illicit exports took place between October 2008 and October 2012. The defendants and co-conspirators obtained advanced microelectronics from U.S. manufacturers and suppliers and exported them to Russia, while evading the U.S. government licensing for these controlled shipments.
   The microelectronics can be used for radar and surveillance systems, missile guidance systems and detonation triggers. “Russia does not produce many of these sophisticated goods domestically,” the Justice Department said.
   When sentenced by U.S. District Judge Sterling Johnson Jr. of the Eastern District of New York, defendants Posobilov, Abdullaev and Diatlova face up to five years in prison for the conspiracy conviction, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA). Posobilov also faces up to 20 years in prison for money laundering conspiracy.