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Government Systems Integrator Faces Federal Fraud Charges

Government systems integrator Aventura Technologies Inc. and several employees face fraud, money laundering and illegal importation charges related to IT equipment sourced from China, according to U.S. federal prosecutors.

Newsday, a Long Island-based newspaper, reports:

“Federal prosecutors Thursday charged a Long Island company, its chief executive and other employees with fraudulently passing off Chinese-made surveillance and security equipment as American-made and selling it to the U.S. government — potentially exposing the military and federal agencies to cybersecurity surveillance and attack.”

The scheme, dating back to 2006, netting some $88 million dollars in sales, including $20 million in government contracts in the last nine years, the report said. Aventura of Commack, New York, also misrepresented itself as a woman-owned small business in order to gain access to federal contracts set aside for those businesses, Newsday said.

ChannelE2E has reached out to Aventura for comment and will update this coverage if we receive a statement.

The case is particularly timely. The U.S. and China are locked in a trade war and intellectual property war. U.S. federal officials and the Trump administration are particularly worried about Chinese technology firms such as Huawei selling equipment that potentially allows China’s government to spy on U.S. officials and organizations.

Both Huawei and China’s government have dismissed such claims.

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