A New York-based company has just been charged by federal prosecutors for endangering national security by illegally importing and selling equipment from China. The criminal charges were brought against Aventura Technology Inc, a company based on Commack, New York.
Federal prosecutors filed criminal charges against the company and seven of its current and former employees. The charges, which were filed on Thursday in the federal court in Brooklyn, alleges that the company has placed the country and its customers at risk by its continued selling of Chinese-made security equipment.
So far, federal authorities have arrested six individuals, including a man named Jack Cabasso, who has been accused of leading the scheme. Cabasso is currently being detained without bail, while the other five that were arrested, including Cabasso's wife, have been released.
Prosecutors believe that Cabasso is a potential flight risk given his foreign connections, his accumulated wealth, and his "lengthy criminal history." Authorities have all but frozen Cabasso's domestic assets, which include a luxury yacht and other assets estimated to be worth around $3 million.
According to court filings, Cabasso and Aventura have allegedly been telling its customers that the products they were selling were made in the United States. The company has reportedly been selling China-made equipment since 2006. Prosecutors explained that some of the products the company had been selling were known to carry cybersecurity risks.
Aventura's largest customers include major government agencies such as the Air Force and Navy. The company also sold its equipment to private companies. Aventura was originally established in 1999 and has since touted itself as a "single-source" manufacturer of security hardware, software, and solutions for commercial and government applications.
An investigation into the company's practices has found that Aventura would regularly sell Chinese imported products, which were falsely labeled as "Made in the USA." The investigation was launched when an Air Force security offer noticed an image of a Chinese security service badge on one of the company's products.
Investigation findings have revealed that Aventura had sold more than $20.7 million worth of security equipment to the US government through General Services Administration contracts.
Aventura is also being accused of misrepresentation, as it allegedly altered its credentials to win government contracts. The company apparently marketed itself as a "woman-owned" small business by falsely listing Cabasso's wife as its founder and CEO.
The evidence that was brought in to convict the arrested officials included communications that apparently proves that they were all aware of the company's practices.
