Dual US-Russian citizen pleads guilty to spying for Russia

Alexander FishenkoA resident of Texas, who is accused by United States authorities of setting up a front company in order to illegally acquire American technology on behalf of Russia’s intelligence services, has pleaded guilty to espionage charges. Alexander Fishenko, 49, was one of 11 people arrested in October 2012 by the Federal Bureau of Investigation. The arrests came during several raids in locations around Houston, Texas, which included the headquarters of Arc Electronics, Inc. The FBI accused the export firm of having shipped over $50 million-worth of military-grade micro-electronics since 2008. The supplies were received in Moscow, Russia, by a mysterious procurement company called Apex System LLC. Counter-intelligence investigators in the US claim that both firms are part of an elaborate scheme set up by Russian military intelligence, aimed at stealing dual-use electronics hardware created by American firms.

According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. Federal prosecutors said that, for over four years, Arc Electronics engaged in a prolonged “surreptitious and systematic” scheme to circumvent US government export controls, thus seriously damaging US national security. Following the early-morning raids, the FBI unsealed indictments against 11 Arc Electronics employees, most of whom were charged with “acting as unregistered agents of the Russian Federation in the United States” —legal jargon for espionage.

Fishenko, who is originally from Kazakhstan, was scheduled to face trial on September 21 in New York. But on Wednesday he chose to plead guilty to the charges leveled against him. He is the fifth member of the 11 Apex System employees arrested back in 2012 to plead guilty to espionage. A government spokesman said the Fishenko’s plea did not result from an agreement to cooperate with the FBI. He now faces up to 15 years in prison. His lawyer, Richard Levitt, declined comment when he was contacted on Wednesday. The Russian government has denied that it had any involvement with Fishenko’s operations.

Author: Joseph Fitsanakis | Date: 08 September 2015 | Permalink

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Moscow denies knowledge of alleged Russian spy ring busted in Texas

Alexander FishenkoBy JOSEPH FITSANAKIS | intelNews.org |
Government officials in Moscow have denied knowledge of an alleged Russian spy ring, which is accused by United States authorities of procuring sensitive microelectronics technology on behalf of the Russian military. Early on Wednesday morning, the Federal Bureau of Investigation conducted pre-dawn raids at several locations in Houston, Texas, and arrested eight members of the alleged spy ring. Four of the arrestees are allegedly Russian citizens, while the remaining five are from Kazakhstan, Azerbaijan and Ukraine. Four are naturalized American citizens. They include Alexander Fishenko, chief executive officer of Apex System LLC, which is accused by the FBI of having exported over $50 million in dual-use microelectronic devices to Russia since 2008. US federal prosecutors allege that three more spy-ring members are currently in Moscow; they include Yuri Savin, Director of Marketing at a company called Artrilor, which is said to have been at the receiving end of Apex System’s export operations. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. The FBI says it has in its possession extensive audio intercepts of the suspects communicating with Russian intelligence, as well as conferring among them about how to hide incriminating documents from US federal authorities. But Sergei Ryabkov, Russia’s Deputy Minister of Foreign Affairs, told Russian reporters on Thursday that the charges against the 11 individuals were “of a criminal nature” and had “nothing to do with intelligence activity”. Read more of this post

FBI raids alleged Russian front-company, indicts 11 on spy charges

Russian Ministry of DefenseBy JOSEPH FITSANAKIS | intelNews.org |
The United States has indicted employees of an alleged Russian front-company in Texas, accused of procuring sensitive microelectronics technology for use by Russian military and intelligence agencies. Public prosecutors in New York said yesterday that the Federal Bureau of Investigation conducted raids in locations around Houston, Texas, which included the headquarters of Arc Electronics, Inc. The export firm is accused of having shipped over $50 million-worth of military-grade microelectronics since 2008. The supplies were received in Moscow, Russia, by a mysterious procurement company called Apex System LLC. Counterintelligence investigators in the US claim both firms are part of an elaborate scheme set up by Russian military intelligence, aimed at stealing dual-use electronics hardware created by American firms. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. Federal prosecutors said that, for over four years, Arc Electronics engaged in a prolonged “surreptitious and systematic” scheme to circumvent US government export controls, thus seriously damaging US national security. Following the early-morning raids, the FBI unsealed indictments against 11 Arc Electronics employees, most of whom were charged with “acting as unregistered agents of the Russian Federation in the United States” —legal jargon for espionage. Read more of this post