ERAI Blog

Dual Russian-American Citizen Pleads Guilty to Conspiring to Export Controlled Microelectronics to Russia

Kristal Snider
ERAI Inc.

Originally charged in October 2012 along with 10 accomplices, Alexander Fishenko pleaded guilty on September 9, 2015 in New York to conspiring and illegally exporting controlled microelectronics to Russia, conspiring to launder money and obstruction of justice.

In a statement released by Assistant Attorney General Carlin, “Alexander Fishenko illegally acted as an agent of the Russian government in the United States and evaded export laws by sending microelectronics and other technology with military applications to Russia. By purposefully circumventing U.S. law, including the International Emergency Economic Powers Act and the Arms Export Control Act, the defendant jeopardized our national security.”

Fishenko, operating as ARC Electronics, Inc. out of Houston, Texas, was also the part owner and Marketing Manager of APEX System, L.L.C, with a principal place of business in Moscow, Russia. The indictment alleges that Fishenko, “acted as an unregistered agent of the Russian Government by illegally procuring controlled Microelectronics for the Russian government, including Russian military and intelligence agenciesⁱ.” From October 2008 through September 2012, Fishenko and his co-conspirators purchased controlled converters, amplifiers, processors memory chips and programmable gate arrays which were then sold to APEX System and its affiliates, MIG Engineering Corporation, Saransk Electronic Corporation and JSC Arsenal Corporation, for re-sale to Russian government agencies. In order to do so, Fishenko provided falsified end user information to suppliers, false ECCN codes and licensing information to evade ITAR and EAR regulations. ARC even “claimed to be a light traffic manufacturer on its website” while APEX deleted information and certificates from their website revealing their certified supplier relationship with the Russian militaryⁱⁱ.

Fishenko faces up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA), money laundering conspiracy, obstruction of justice and up to 10 years for acting as a Russian agent.

ⁱIndictment - United States of America v. Fishenko et. al.

ⁱⁱIndictment - United States of America v. Fishenko et. al.

Additional Reading

http://www.bloomberg.com/news/articles/2015-09-25/texas-instruments-xilinx-duped-by-russia-export-ring-u-s-says

http://www.cnn.com/2015/09/09/us/russia-military-alexander-fishenko-guilty-plea/index.html

http://www.dispatchtimes.com/alexander-fishenko-pleads-guilty-to-acting-as-agent-of-russian-government/82870/

https://www.fbi.gov/newyork/press-releases/2015/russian-agent-pleads-guilty-to-leading-scheme-to-illegally-export-controlled-technology-to-the-russian-military

http://www.dailymail.co.uk/news/article-2212524/Alexander-Fishenko-Texas-businessman-accused-Russian-agent.html