Aventura Technologies, Inc. of Commack, New York pleaded guilty on March 19, 2024 to mail and wire fraud conspiracy and illegal importation for buying Chinese-made security equipment and reselling it as USA-made, the U.S. Attorney’s Office for the Eastern District of New York announced.
The scheme
- From 2006 to 2019 the company resold imported, mostly Chinese, networked cameras and other security gear as made at its Commack headquarters.
- Customers included the Navy, the Air Force, the Department of Energy and other agencies.
- Aventura made more than $112 million in sales from 2008 to 2019, including over $20 million in federal contracts.
- Prosecutors said some products had known cybersecurity flaws, and that the owner pressed a Chinese supplier to remove its initials from circuit boards.
- The company also falsely posed as woman-owned to win set-aside contracts.
The outcome
Aventura agreed to dissolve and forfeit more than $3 million in seized assets, including its headquarters, a 70-foot yacht and over 7,000 seized items. All seven charged individuals, including owner Jack Cabasso and nominal president Frances Cabasso, had already pleaded guilty.
“This GSA contractor lied about its surveillance and security equipment being made in the United States when it was actually being made in China.”
GSA Deputy Inspector General Erickson
FAQ
What did Aventura admit?
Mail and wire fraud conspiracy and illegal importation for reselling Chinese gear as USA-made.
Who bought the products?
Military branches, federal agencies and private customers in the USA and abroad.
What is the penalty?
The company will dissolve and forfeit more than $3 million in assets.
Source & credit
Source: U.S. Attorney’s Office, Eastern District of New York, March 19, 2024: “Aventura Technologies, Inc. Pleads Guilty to Wire Fraud and Illegal Importation for Reselling Chinese Goods as U.S.-Made”.
Also: Stars and Stripes, March 19, 2024: “New York company admits it illegally sold Chinese-made equipment to US military”.