FBI: Workers hid scheme to sell Russia electronics

U.S. authorities have arrested Alexander Fishenko, owner of Arc Electronics Inc., and seven of his employees, including Alexander Posobilov, who was the company's director of procurement. They are accused of being involved in a scheme to illicitly sell military technology to Russia, starting in 2008.

U.S. Magistrate Judge George Hanks Jr. denied bail for Posobilov, 58, following a detention hearing Friday. Hanks agreed with prosecutors that Posobilov, a Russian immigrant who later became a U.S. citizen, was a flight risk.

A detention hearing for Fishenko and three of his workers was postponed until Wednesday. Two employees will have their hearings Tuesday. One employee was granted bail of $250,000 on Friday.

During Friday's detention hearing, FBI agent Crosby Houpt testified about email exchanges and phone conversations Posobilov had in which he discussed how to forge invoices to hide from U.S. manufacturers where the equipment Arc Electronics was buying from them was ending up. Authorities say the microelectronics sold by Arc could have a wide range of military uses, including radar and surveillance systems, weapons guidance systems and detonation triggers.

One email exchange from August 2011 showed Posobilov lying to a U.S. manufacturer, telling a representative of that company that equipment Arc Electronics was buying was for a fishing boat navigation system, Crosby said.

"Mr. Posobilov knew the parts were for the Russian Navy," the FBI agent said.

Richard Kuniansky, Posobilov's attorney, suggested there was no direct evidence that showed any of the electronics Arc sold ended up in Russian military equipment. He also tried to portray his client as a humble man who earned a "meager salary."