Houston Businessman Gets 11 Years for Funneling Tech to Russian Military
A Houston businessman was sentenced to more than 11 years in prison for his role in a lucrative conspiracy to funnel cutting-edge U.S. microelectronics to the Russian military.
Alexander Posobilov, 62, one of 11 people charged in the scheme, was a director of ARC Electronics, which shipped $50 million of electronics to Russia over the course of a decade. Posobilov was accused of evading export controls and concealing from suppliers that the products, which are used in a wide range of military systems, would end up in the Russian military's hands.
A research unit of Russia's security service, an entity that builds air and missile defense systems for Russia and another that makes electronic warfare systems for the Ministry of Defense were among the recipients of the technology — which Russia was unable to manufacture at home, prosecutors said.
"Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military," U.S. Attorney Robert Capers said in a statement.
Posobilov, who was convicted at trial with two others, has already appealed. The former owner of ARC, Alexander Fishenko, pleaded guilty and was sentenced to 10 years in July. Five other defendants pleaded guilty and three are at large.