Alexander Fishenko Explained

See also: Front company and Microelectronics.

See also: Dual-use technology and Arms Export Control Act. Alexander Fishenko is a Russian spy who is believed to have been operating in the United States for some time prior to his detection and arrest.

Born in Kazakhstan, within the USSR, Fishenko ostensibly immigrated to the United States in 1994, becoming a citizen in 2003, and was the founder (1998) and CEO of Houston-based Arc Electronics Inc.[1] Fishenko's supposed Tech company claimed to produce technology for traffic lights and navigation systems. In reality Arc Electronics was never in any way a manufacturer, but pretended to be one in order to openly procure certain components in bulk, so that they could then be smuggled to Russia.[2] [3]

On October 3, 2012, Fishenko was charged by a Brooklyn court with being a Russian secret agent and illicitly providing US military technology to help Russia modernize its own military. The chips supplied by Arc are similar to those used in US military weapons, according to the government.[4] Allegedly, one of the end users of Arc's product was the Federal Security Service, successor to the KGB. Fishenko does not hold the licensing to export microelectronics, and thus, if proven to be doing so, would face severe consequences. The government, although confident they have stopped the problem from growing, believe some US technology has reached the Russian government, heightening tensions between the US and Russia.[5]

Fishenko is accused with ten other suspected agents of purposely evading export controls, money laundering and operating inside the United States as an agent of the Russian government. The consequences of these charges, if proven, could be severe. Sources in the Russian government deny any connection to Fishenko or any others accused in the matter. Fishenko pleaded not guilty in the initial hearings held in October 2012. He chose to plead guilty in September 2015.[6] [7]

Fishenko was sentenced to 10 years in prison and ordered to forfeit more than $500,000 in criminal proceeds following his guilty plea on Sept. 9, 2015 to a 19-count indictment.[8]

Notes and References

  1. Web site: Alexander Fishenko, accused of selling hi-tech microelectronics illegally to Russia, due in court . CBS News . Oct 4, 2012 .
  2. Web site: Marzulli . John . U.S. biz man charged as secret agent who shipped electronics from JFK to Russian military . New York Daily News . October 3, 2012 .
  3. Web site: Lozanno . Juan . Alexander Fishenko, Arc Electronics Owner, May Have Sold Tech Secrets To Russian Navy By Pretending To Build Fishing Gear . Huffington Post . Oct 5, 2012 . https://web.archive.org/web/20121010060953/http://www.huffingtonpost.com/2012/10/05/alexander-fishenko-arc-electronics_n_1941610.html . October 10, 2012 . dead .
  4. Web site: Smythe . Christie . Accused Military Tech Exporter Pleads Not Guilty in N.Y. . Bloomberg Business Week . Oct 22, 2012 . https://web.archive.org/web/20121030115002/http://www.businessweek.com/news/2012-10-22/accused-military-tech-exporter-pleads-not-guilty-in-n-dot-y-dot . dead . October 30, 2012 .
  5. Web site: Stern . Ray . Alexander Fishenko's Houston Spy Network Shipped High-Tech Goods to Russian Defense Agencies, Feds Say; U.S. Commerce Department Fooled . Phoenix News . Oct 3, 2012 .
  6. News: Jorgensen. Sarah. Brown. Forrest. U.S.-Russian citizen pleads guilty in multimillion dollar military scheme. CNN.com. September 9, 2015.
  7. News: Smythe . Christie . Military Technology Exporter Admits to Spying for Moscow . Bloomberg Business . . 9 September 2015 . 9 September 2015 .
  8. Web site: Russian Agent Sentenced to 10 Years for Acting as Unregistered Russian Government Agent and Leading Scheme to Illegally Export Controlled Technology to Russian Military. 21 July 2016.