US Military Duped Into Buying Chinese Cameras Rife With Flaws

Charges: Chinese surveillance goods illegally sold to US

Federal examiners have documented criminal accusations blaming a NY organization for uncovering the USA government and private clients to security chances by illicitly bringing in and selling reconnaissance and security hardware from China.

Six of the defendants are slated to be arraigned in Brooklyn Federal courtroom Thursday afternoon.

US Attorney Richard Donoghue said the government began investigating the alleged scheme after a member of an Air Force security unit saw an image of a Chinese security service badge in software for one device. Check back to Daily Voice for updates. "Aventura has made more than $88 million since November 2010", according to paperwork.

Prosecutors said in court papers that Jack Cabasso should not be released on bail because his wealth, foreign connections and "lengthy criminal history", including a conviction for tampering with a jury in an earlier fraud case against him, point to a high risk that he will flee the country.

"The defendants falsely claimed for years that their surveillance and security equipment was manufactured on Long Island, padding their pockets with money from lucrative contracts without regard for the risk to our country's national security posed by secretly peddling made-in-China electronics with known cyber vulnerabilities", said Richard P. Donoghue, U.S. Attorney for the Eastern District of NY.

Wayne Marino is expected to surrender Friday. "In fact, Aventura does not manufacture anything in the United States".

They also accused Aventura of misrepresenting itself as a "woman-owned small business" in order to win government contracts set aside for such businesses, falsely listing Cabasso's wife, Frances, as the company's owner and chief executive.

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Some of the Chinese-made cameras Aventura sold to the military are known to have "vulnerabilities that could allow a hacker to remotely assume control of a networked camera and obtain sensitive data", a criminal complaint alleges.

The authorities are in the process of removing the equipment from government facilities, Mr. Donoghue said. Aventura and legal counselors for the Cabassos couldn't quickly be gone after remark.

The suspects face charges of conspiracy to commit wire and mail fraud and money laundering. He had deep business relationships in China and used a network of shell companies to launder the millions of dollars he made, the prosecution memo said.

According to the Justice Department, federal investigators uncovered the scheme by intercepting the shipments Chinese manufacturers sent to Aventura, and tracking their eventual arrival to the company's government customers.

In one email exchange with a government official, he complained that there is a "big problem" with vendors "listing from a company that is actually the Communist Chinese Government and has "significant" cybersecurity issues", according to court documents.

Law enforcement also executed search warrants at the Northport home of Jack and Frances Cabasso and seized their 70-foot luxury yacht.

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