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Russian High-Tech Export Scandal Produces 8 Arrests in Houston

timothy posted more than 2 years ago | from the it-isn't-the-bars-it's-the-humidity dept.

Crime 83

Penurious Penguin writes "Millionaire Alexander Fishenko, owner of US-based Arc Electronics Inc, and seven others have been arrested in Houston Texas, with a total of 11 indicted in a conspiracy to smuggle advanced microelectronics from the U.S. to Russia. The technology allegedly involves components of radar, weapons guidance, and detonators. Amongst the evidence are accounting records indicating notable similarity between the revenue of Arc Electronics and the Russian Federation's defense spending; intercepted phone calls and emails; and a letter to Arc Electronics from a Russian domestic intelligence lab complaining of defective microchips . A Russian foreign ministry spokesman has denied there were any intelligence connections in the affair."

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Well, (0)

Anonymous Coward | more than 2 years ago | (#41547851)

At least he wasn't smuggling it to the Muzzies

Re:Well, (0)

Anonymous Coward | more than 2 years ago | (#41547929)

At least he wasn't smuggling it to the Muzzies

No, Rosoboronexport handled that part.

Look at the bright side (1)

Chrisq (894406) | more than 2 years ago | (#41548249)

At least he wasn't smuggling it to the Muzzies

No, Rosoboronexport handled that part.

Look at the bright side, they might use them against Chechnya, Islam is our common enemy

Re:Look at the bright side (0)

Anonymous Coward | more than 2 years ago | (#41548965)

At least he wasn't smuggling it to the Muzzies

No, Rosoboronexport handled that part.

Look at the bright side, they might use them against Chechnya, Islam is our common enemy

I have never knowingly made any Moslem my enemy,
A handful of loony Moslem fundamentalists have declared them selves my enemy for reasons I do not understand,
I get along very well with the remaining 98% of the worlds Moslems.

I can no longer sit back (4, Funny)

GeneralTurgidson (2464452) | more than 2 years ago | (#41547931)

and allow Communist infiltration, Communist indoctrination, Communist subversion and the international Communist conspiracy to sap and impurify all of our precious microchips.

Re:I can no longer sit back (1)

Shavano (2541114) | more than 2 years ago | (#41547975)

The US government paid to develop advanced weapons systems that give them a tactical advantage over everybody else -- at least that was their intent. So why shouldn't they get to keep that advantage as long ad they can?

Re:I can no longer sit back (3, Funny)

aaaaaaargh! (1150173) | more than 2 years ago | (#41549443)

But the US can still nuke anyone from the orbit, so the money was not well-spent in the first place.

We should rather care about the quality of our drinking water. With current safety standards, any Russian spy could put chemicals in it that cause homsexuality, and I guess we all know what consequences that would have.

Yada yada yada (1)

tlambert (566799) | more than 2 years ago | (#41554581)

But the US can still nuke anyone from the orbit, so the money was not well-spent in the first place.

People keep saying this, but it never happens; the US keep sending conventional troops places to get shot up instead.

I say put up or shut up.

Uh, 13 (0)

Anonymous Coward | more than 2 years ago | (#41547979)

..Houston, we've had a problem.

Re:I can no longer sit back (1)

AliasMarlowe (1042386) | more than 2 years ago | (#41548065)

and allow Communist infiltration, Communist indoctrination, Communist subversion and the international Communist conspiracy to sap and impurify all of our precious microchips.

Somebody makes microchips out of our precious body fluids? Yuk!

Re:I can no longer sit back (1)

fustakrakich (1673220) | more than 2 years ago | (#41548231)

Somebody makes microchips out of our precious body fluids?

Yep, kinda [scripps.edu]

Re:I can no longer sit back (1)

Noughmad (1044096) | more than 2 years ago | (#41548415)

and allow Communist infiltration, Communist indoctrination, Communist subversion and the international Communist conspiracy to sap and impurify all of our precious microchips.

Somebody makes microchips out of our precious body fluids? Yuk!

The silicon mines are dying. Pentiums are people!

Re:I can no longer sit back (0)

sumdumass (711423) | more than 2 years ago | (#41556143)

You've heard of organic quantum computing haven't you?

I'm sure you have.. now I'm betting you are wondering if I'm serious. Well, just keep eating plenty of carrots so you will have good eyesight.

Wrong character (1)

wiredog (43288) | more than 2 years ago | (#41549175)

Col. Ripper was the one who was upset about the Commies impurifying our manly juices microchips with fluoride.

(Side note: HF is actually used in some chip manufacturing.)

Re:I can no longer sit back (2)

Hillgiant (916436) | more than 2 years ago | (#41549349)

Strictly speaking, the perpetrators in this case were motivated by capitalism, not communism.

(yes you were making a joke. but really, its been 21 years since the USSR went kaputnik)

Microelectronics? (3, Interesting)

hjf (703092) | more than 2 years ago | (#41547953)

Microelectronics that are "components of radar, weapons guidance, and detonators". So, a DSP? A microcontroller? FPGAs?

As if none of that shit is manufactured in asia anyway. Conspirancy to smuggle? More like tax fraud under an heroic excuse.

Re:Microelectronics? (0)

Anonymous Coward | more than 2 years ago | (#41548011)

Conspirancy to smuggle? More like tax fraud under an heroic excuse.

Unpatriotic and treason

Re:Microelectronics? (2, Funny)

Junior Samples (550792) | more than 2 years ago | (#41548029)

His web site says that he specializes in procurement of hard to find and obsolete components. Intel 4004 perhaps?

Re:Microelectronics? (1)

poity (465672) | more than 2 years ago | (#41549143)

Texas Instruments has fabrication facilities in the US (in Texas, no less). They're a major provider of military computer hardware. Their calculators might be made in Asia, but you can bet the chips that the military gets aren't made in Asia.

Re:Microelectronics? (0)

Anonymous Coward | more than 2 years ago | (#41549335)

An heroic. An. An. An.

A/D converters, processors, SRAM, Microcontrollers (2, Informative)

Anonymous Coward | more than 2 years ago | (#41549351)

A/D converters, processors, SRAM, Microcontrollers. Basic chinese mass market kit.

The faulty chips seems to be these ones (from the part number):
http://www.alldatasheet.com/datasheet-pdf/pdf/81901/AD/ADG819BRT.html

It's a CMOS single pole, double throw switch. Yes, seriously, takes me back to my childhood! 74LS00's an all.

Read the indictment:
http://federalcrimesblog.files.wordpress.com/2012/10/letter-to-the-court-moving-for-a-permanent-order-of-detention.pdf

Better still read the ACTUAL quotes from the people accused, removing the FBI inuendo:

Fishenko writes: “in a more presentable format”
FBI writes:
"For example, on September 24, 2009, Fishenko engaged in
an email exchange with an employee of a Russian procurement firm.
Fishenko requested that the employee get an end user document
from a Russian factory “in a more presentable format” The next
day, the employee responded and attached a new end user
statement, explaining, “This letter is pure forgery. I made it
using a copy machine.”"

Fishenko writes: “our person,‘zakinuty kazachok."
I write: zakinuty kazachok translates as "abandoned cossak", I don't know if it means spy, Google translate doesn't say.
FBI writes:
"Fishenko has referenced his ties to Russia’s
intelligence services. For example, in an October 24, 2011
conversation with another Russian electronics broker, Fishenko
and the broker discussed an individual who worked at the broker’s
firm who, they believed, had been an intelligence officer with
the FBI. Fishenko stated that the man was “our [type of] person,
‘zakinuty kazachok.’” “Zakinuty kazachok” (literally “thrown
Cossack”) is a Russian colloquialism for “spy” or “secret agent.”

Posobilov writes: "ake sure that those are fishing boats, and not fishing/anti-submarine ones... Then we’ll be able to start working."
I write: Russian military have Glosnass GPS, they don't use civilian US GPS that doesn't support GLOSNASS, because civilian US GPS can be degraded at will. So we know for sure this wasn't for military use.
FBI writes:
"Posobilov has also made explicit statements that
demonstrate his intent to evade export laws and defraud
suppliers. For example, on April 4, 2011, Posobilov exchanged
emails with a U.S. vendor regarding an order for certain parts.
Posobilov indicated that the parts were for “fishing boat radar
equipment” and provided the name and address of a Russian end
user. The vendor informed Posobilov that the requested parts
required an export license for Russia and indicated that,
therefore, the vendor would need a more complete end use
statement. Posobilov then forwarded this exchange to the Russian
procurement firm, instructing them to coach the end user to
complete the end use declaration in such a manner as to
facilitate obtaining the controlled component. Posobilov wrote,
“[m]ake sure that those are fishing boats, and not
fishing/anti-submarine ones... Then we’ll be able to start
working.”

Weird (0)

Anonymous Coward | more than 2 years ago | (#41548007)

Why the middle man - why not smuggle the stuff directly from China?

Re:Weird (2)

Chrisq (894406) | more than 2 years ago | (#41548143)

Why the middle man - why not smuggle the stuff directly from China?

Put it this way, would you rather get caught smuggling from the USA or from China? I'm sure neither are pleasant, but I suspect that one is considerably worse than the other.

Re:Weird (0)

Anonymous Coward | more than 2 years ago | (#41549395)

Why the middle man - why not smuggle the stuff directly from China?

Put it this way, would you rather get caught smuggling from the USA or from China? I'm sure neither are pleasant, but I suspect that one is considerably worse than the other.

So which is worse? A lifetime of prison rape in the US or a Chinese bullet to the back of the neck?

Re:Weird (1)

Aighearach (97333) | more than 2 years ago | (#41556431)

So which is worse? A lifetime of prison rape in the US or a Chinese bullet to the back of the neck?

I guess it depends if you're going to end up on the top or the bottom bunk.

Thank you, moose and squirrel (2)

crazyjj (2598719) | more than 2 years ago | (#41548013)

Next time take a page from the Chinese and just convince the target country to manufacture the components in your country in the first place.

That's Not How Export Control Works (0)

eldavojohn (898314) | more than 2 years ago | (#41548111)

Next time take a page from the Chinese and just convince the target country to manufacture the components in your country in the first place.

Hmmm, sounds like you should brush up on your export control laws [doc.gov] . From the most basic concepts:

WHAT IS AN EXPORT?

Any item that is sent from the United States to a foreign destination is an export. “Items” include commodities, software or technology, such as clothing, building materials, circuit boards, automotive parts, blue prints, design plans, retail software packages and technical information.

How an item is transported outside of the United States does not matter in determining export license requirements. For example, an item can be sent by regular mail or hand-carried on an airplane. A set of schematics can be sent via facsimile to a foreign destination, software can be uploaded to or downloaded from an Internet site, or technology can be transmitted via e-mail or during a telephone conversation. Regardless of the method used for the transfer, the transaction is considered an export. An item is also considered an export even if it is leaving the United States temporarily, if it is leaving the United States but is not for sale (e.g., a gift), or if it is going to a wholly-owned U.S. subsidiary in a foreign country. Even a foreign-origin item exported from the United States, transmitted or transshipped through the United States, or being returned from the United States to its foreign country of origin is considered an export. Finally, release of technology or source code subject to the EAR to a foreign national in the United States is “deemed” to be an export to the home country of the foreign national under the EAR.

Emphasis mine. So how are you telling the Chinese what to make if you're not shipping them the schematics? If you know a company that is manufacturing such sensitive controlled electronics overseas I believe you are legally obligated to report it to your local Office of Export Enforcement branch [doc.gov] .

Re:That's Not How Export Control Works (1)

crazyjj (2598719) | more than 2 years ago | (#41548229)

Duh, you don't need to ship them the schematics. Their hackers have already stolen them. Problem solved!

Re:That's Not How Export Control Works (0)

Anonymous Coward | more than 2 years ago | (#41550511)

Volunteer for prison! Seriously though. Export controls are a joke. "Our precious high technology blah blah". As if the only ones able to create technology are in the United States. There isn't anything that we have that they can't build. If 40% of PhD's coming out of American Universities have Chinese surnames, and those 40% can't get jobs in the US, then American Universities are training 40% of Chinas PhD's. There are Chinese PhD's being trained in other universities around the world too, and a lot of them wind up back in China. They have better technology than "Our Precious Precious Technology"(tm). Export controls limits computers with a certain number of processors, but there is nothing stopping you from connecting dozens of these computers together and getting the same (or better) performance at a cheaper price. Export controls allow exports from the US to country B, but there are no controls between country B and the bad bad country C, and they get it anyway. Export controls are a joke. As for reporting something that you did that might get you in jail? Oh, just volunteer for prison now.

Re:Thank you, moose and squirrel (1)

shutdown -p now (807394) | more than 2 years ago | (#41550573)

The problem is that you need to have sufficient manufacturing capability in your country to pull that off first...

Disbelief (0, Flamebait)

ka9dgx (72702) | more than 2 years ago | (#41548031)

I for one, refuse to believe that we actually have any technology left which is advanced beyond that available in countries where they actually make things.

We let the republicrats job-jack all of our manufacturing overseas, and now we no longer have a manufacturing base left, which means nobody getting annoyed at problems in production, which means no innovation.

This story is pure propaganda as far as I can tell. We don't even make the best culture any more, as Gangnam style has proven. We just do knockoffs.

Re:Disbelief (0)

Anonymous Coward | more than 2 years ago | (#41548169)

I for one, refuse to believe that we actually have any technology left which is advanced beyond that available in countries where they actually make things.

Huh. If you're actually serious, and open to a little learning, you might want to read up on aerospace and defense hardware.

Re:Disbelief (1, Interesting)

ka9dgx (72702) | more than 2 years ago | (#41548323)

Example: We used to make rare-earth magnets in Valporaiso, Indiana. The factory was sold and moved to China.

Without those components, you can't make the high-performance servos necessary to fit into our existing missile designs where they serve to move the control surfaces to steer.

Conclusion: Thus, if we want to fight a war, we now have to buy parts from China.

We haven't tested our nukes in ages, we'd forgotten how to make critical parts (fogbank, for example), and they all have a half-life. We import everything. We wouldn't last a year in a world war, and those tend to grind on, in spite of faster transport.

Re:Disbelief (1)

jacknifetoaswan (2618987) | more than 2 years ago | (#41548705)

We might not manufacture the base components here, but we sure as hell build the final assemblies here. I work for Lockheed Martin, and in my facility, we build the SPY-1 radar arrays that are installed on the US, Japanese, Norwegian, South Korean, and Australian Navy's destroyers, cruisers, and frigates. We might import transistors, chips, whatever, but they're just components. A radar array is much more than just the sum of its parts, and the design knowledge, plus the final manufacture, lives and dies with American workers.

As for lasting a year in a world war, you're severely mistaken.

Re:Disbelief (0)

Anonymous Coward | more than 2 years ago | (#41548825)

We wouldn't last a year in a world war, ...

NOBODY would last a year in a world war.

Re:Disbelief (3, Interesting)

poity (465672) | more than 2 years ago | (#41549433)

The US has a trump card of its own. It's still the breadbasket of the world, and while military war machines depend on manufacturing, so too do soldiers depend on food. Additionally, in a world war it also has two huge oceans and the vast Canadian wilderness protecting it from attack (barring people with nukes going insane, of course). Unless someone can convince Canadians or Mexicans to flip their allegiances, it has the option of going pure offense or pure isolationist. Very few countries can do this.

Re:Disbelief (1)

DNS-and-BIND (461968) | more than 2 years ago | (#41551827)

Allegiance? Yeah, I think you need to go to Mexico and ask around about how Mexicans think of America. I have a feeling you'd be shocked at their attitudes. Allegiance! Haha.

Re:Disbelief (1)

poity (465672) | more than 2 years ago | (#41553573)

Mexican citizens may be dissatisfied with US drug and immigration policies, but I hardly think invasion is on their minds. The greatest hostility they'll show to Americans is probably to regard them with the same condescension they regard Guatemalans. In any case, allegiances are made by the government, and those decisions are rarely made on a sentiment. Barring Mexico descending into ungovernable chaos, the government is going to act conservatively. Now, you might think the drug cartels would want to undermine the US, but their very existence is dependent on a wealthy and hedonistic US populace, and if anything I would expect them to become a new group of 'Contras' in a WW3 scenario rather than back any militant anti-US movement.

Re:Disbelief (1)

Megane (129182) | more than 2 years ago | (#41552815)

Unless someone can convince Canadians or Mexicans to flip their allegiances

Because Mexico would never turn on us. [wikipedia.org]

Re:Disbelief (1)

poity (465672) | more than 2 years ago | (#41553453)

Oh I'm not ignorant of that little fact. Back in the turn of the century when the US was an emerging power, that may have worked (however unlikely, since Mexico lost its stature as an equal regional power 100 years before that time). And even then, Mexico would have risked everything by doing so. I don't envision Mexico ever becoming hostile to the US before matching it in war-making ability.

Re:Disbelief (1)

poity (465672) | more than 2 years ago | (#41549243)

It doesn't necessarily have to be about obtaining technology for the purpose of "catching up". Even if the US doesn't have technology that is beyond what Russia or China has, it's still useful to those countries to obtain that technology. By studying it, they can find strengths and weaknesses, alter their doctrine to take into account its capabilities, and more intelligently develop countermeasure hardware. It's in the interest of every country to keep these things secret, and it's in the interest of every country to seek these secrets of others.

Re:Disbelief (1)

tibman (623933) | more than 2 years ago | (#41552331)

Civilian manufacturing maybe. But that's up to business owners to make those decisions, not politicians. Blame business owners. They could build it locally for more (or the same cost with less profit) and support local economies. I'm not trying to offend anyone and of course i'm simplifying it.. but that is how it looks to me.

The Official ISR thread here (0)

Anonymous Coward | more than 2 years ago | (#41548041)

Please post all of you "In Soviet Russia" jokes under this thread. I'll start off:

In Soviet Russia, electronics export YOU.

re: conspiracy to smuggle advanced microelectronic (4, Interesting)

dgharmon (2564621) | more than 2 years ago | (#41548043)

Is it any news that the Russians 'borrow` a lot of their tech from the west. I understand you could get such 'advanced microelectronics` in a games console. Wasn't it the case, some time ago, that a middle-eastern country was going round buying up games consoles for the chips?

Re: conspiracy to smuggle advanced microelectronic (3, Informative)

Cid Highwind (9258) | more than 2 years ago | (#41548193)

Yes, Iraq supposedly bought 4000+ Playstation 2s to model nuclear detonations, there was at least one slashdot story [slashdot.org] about it.

Of course, if you believe what the western press reported about Iraqi weapons programs in that era, I have a very nice bridge and 400 kilos of yellowcake Uranium to sell you...

Re: conspiracy to smuggle advanced microelectronic (1)

DigiShaman (671371) | more than 2 years ago | (#41554813)

1988 Iraq, Project Babylon. Objective: to build a supergun and eventually shoot stuff into orbit starting with 'Big Babylon'.

Basically, it was a wacky idea. So the idea of using 4k PS2s (another wacky idea) shouldn't be scoffed at too. We are talking about Saddam Hussein. He wasn't a level headed kind of guy. He was a dangerous guy with delusions of grandeur. Good riddance.

Re: conspiracy to smuggle advanced microelectronic (1)

CdBee (742846) | more than 2 years ago | (#41548257)

I think that story (using Nintendo chips as missile guidance?) was totally debunked in the end and it was suggested it may have been dreamed up along with the majority of the illegal weapons, to justify a war that was already desired

Re: conspiracy to smuggle advanced microelectronic (1)

SuricouRaven (1897204) | more than 2 years ago | (#41549895)

How hard can missile guidance be? The software is tricky, but it doesn't demand a great deal of computing power. You could probably run it on a few PICs, with a skilled coder.

Particularly... (1)

tlambert (566799) | more than 2 years ago | (#41554665)

I think that story (using Nintendo chips as missile guidance?) was totally debunked in the end and it was suggested it may have been dreamed up along with the majority of the illegal weapons, to justify a war that was already desired

Particularly when it is well known that you can defeat missiles using that kind of control system with something as simples as a track ball and three buttons. Here's a picture of the operator console for such a system: http://cdn.chud.com/a/a2/a23bbcb6_11011101.jpeg [chud.com]

Re: conspiracy to smuggle advanced microelectronic (0)

Anonymous Coward | more than 2 years ago | (#41549463)

A common misguided American assumption. When we get out-competed and outsmarted that must because the competitor stole our tech... Get a grip...

Silly Russians (4, Insightful)

Required Snark (1702878) | more than 2 years ago | (#41548139)

Don't they realize that all "US" electronics are made in China? Why are the going through all the trouble to illegally export gear from the US when they can get it directly from the manufacturers in Asia? They are still stuck in a Cold War mind set, where the US is the enemy and Asia is not the major source for technology. They need to stop living in the past.

Nothing is actually made in the US any more. The big bucks here are in intellectual property and patent litigation: Samsung vs Apple.

The Chinese are ahead of the curve on this. They know the best way to gain advantage is to use cyber-theft to steal IP. It is very cost effective and produces quick results.

Unlike export controls, there is no national policy on protecting IP online. Every time someone in the government (Democrats mostly) brings it up business interests scream about government interference, needless regulations and creeping bureaucracy.

If something is stolen via cyber-theft, their is no legal consequence. Even in the military sector, none of the big defense contractors ever are fined or loose contracts because they leak classified information like a sieve.

Heck, now with the complete lack of controls on campaign contributions it would be cheap to insure that the current online vulnerabilities remain the norm. All you have to do is give some money to the right elected officials in Congress, and stealing US technology will remain as easy as taking candy from a baby.

The Russians need to get with the program and copy what the Chinese are already doing. They should be spending more money on PACs, and stop wasting effort on smuggling.

Re:Silly Russians (0)

Anonymous Coward | more than 2 years ago | (#41549023)

Exactly my thought, but hey, if they want to use a US shell company as a middle man and pay all the associated taxes into the US gov't along the way, more power to them.

Re:Silly Russians (1)

PPH (736903) | more than 2 years ago | (#41549045)

Don't they realize that all "US" electronics are made in China? Why are the going through all the trouble to illegally export gear from the US when they can get it directly from the manufacturers in Asia?

Better prices.

Re:Silly Russians (0)

Anonymous Coward | more than 2 years ago | (#41549863)

The Russians don't want to deal with communists. That's why they import Chinese tech via the US. This also gives them an excuse to visit Disneyland.

PS: They need this tech to upgrade the sound systems in the Soyuz to deal with the dynamic range of opera singing.

Re:Silly Russians (3, Informative)

mcgrew (92797) | more than 2 years ago | (#41550157)

Nothing is actually made in the US any more.

Except Construction equipment [caterpillar.com] , tractors [casece.com] , cars, trains, roads, houses, commercial buildings, food, copper piping and tubing [cerroflow.com] , drugs and other chemicals (ever hear of Monsanto?), concrete... No, we make nothing here.

Gees, guys, wtf?

Re:Silly Russians (1)

ColdWetDog (752185) | more than 2 years ago | (#41550527)

Nuclear weapons, nuclear powered submarines, nuclear powered aircraft carriers, nuclear powered spacecraft, F16's, F18's, F22's, C17's, B2's, B52s, B1B's, A10's, Tanks, EWACS, Up Armored trucks, Air to ground missiles, Ground to Air missiles. Missile to Missile missiles.

Do you all get the drift here?

Re:Silly Russians (2)

cheesybagel (670288) | more than 2 years ago | (#41555327)

Actually the Russians have more advanced nuclear powered spacecraft than the US. B1B? Sucks compared to a Tu-160 which has twice the speed and twice the payload. C17? Sucks compared with an An-225 Mriya and their Il-76 do the job just fine. B-52s? They are okay but the Russians also have the Tu-95 Bear. I doubt there is anything in the F-16 or F-18 that they don't have already done better. B-2s are good to bankrupt yourself.

F-22s and F-18 Super Hornet have some interesting technology which they are attempting to compete with the PAK FA.

Tanks is one area where they have been doing some large improvements over their past models but their doctrine is different since they prefer to have more tanks of lower quality than less more expensive higher quality tanks. They used to have two tank models: a cheaper one for mass production (T-72) and a more expensive one for quality (T-80). However their experience in Chechnya showed the T-80s were not worth the cost since they were just as vulnerable. Russia has a larger land border than the US to defend. They could do better in optics, or gun stabilization, or armor but it would require doing things differently. Missiles? They have S-400 Triumf, the Vympel R-73, R-77, P-800 Oniks, etc. The US has somewhat more advanced air to ground weapons but they also have a fairly diverse catalog they can use.

Re:Silly Russians (1)

DerekLyons (302214) | more than 2 years ago | (#41554409)

Gees, guys, wtf?

You must be new here - this is Slashdot, we don't deal in facts.

That the US manufacturing segment is something like the 11th or 12th largest economy in the world all by itself is utterly irrelevant.

Monsanto... aren't they that company from... (1)

tlambert (566799) | more than 2 years ago | (#41554679)

Bhopal, India? http://en.wikipedia.org/wiki/Bhopal_disaster [wikipedia.org]

Re:Monsanto... aren't they that company from... (0)

Anonymous Coward | more than 2 years ago | (#41556275)

Nope. The Bhopal disaster was down to Union Carbide (now, if memory serves, part of Dow Chemical). Specifically. Union Carbide's Indian subsidiary...

Re:Monsanto... aren't they that company from... (2)

tlambert (566799) | more than 2 years ago | (#41556565)

Actually, Dow Chemical owns UCC since 2001 http://en.wikipedia.org/wiki/Dow_Chemical_Company#Bhopal_disaster [wikipedia.org] but thank you for the correction, I misremembered the acquisition of UCC, whose subsidiary UCIL ran the Bhopal plant.

Monsanto, however, is a global company with 21,000 employees in 404 facilities in 66 countries, not a US one; here is a list of worldwide facilities from their web site: http://www.monsanto.com/whoweare/pages/our-locations.aspx [monsanto.com]

Likewise, Caterpillar does it's manufacturing close to its customers in various countries: http://www.caterpillar.com/company/global-footprint [caterpillar.com]

Case tractors are also manufactured outside the US in many instances: http://en.wikipedia.org/wiki/Case_IH#Factory_locations [wikipedia.org] ; most of the engines used in the US models are manufactured in Brazil.

General Electric, which manufactures most of the train locomotives used in the US, makes nearly 2/3rds of its money outside the US, and has reduced their US workforce by 1/5 from 2002 to 2011: http://www.nytimes.com/2011/03/25/business/economy/25tax.html?scp=2&sq=ge&st=cse [nytimes.com]

I'll point out that most steel beams used in large construction are manufactured in China and shipped over for use in the US, since the US no longer has the facilities to manufacture them; for example, most of the recent San Francisco Bay Bridge superstructure is from China: http://www.bloomberg.com/news/2011-07-11/sf-bay-bridge-gets-5-300-ton-delivery-from-china.html [bloomberg.com]

The other stuff is transient local infrastructure (why bring in concrete from another country, unless you are talking pre-stressed concrete girders, which, again, tend to get shipped from China).

So tell me again how the US is doing?

Re:Silly Russians (1)

cheesybagel (670288) | more than 2 years ago | (#41555213)

US cars suck. Why would I want to copy those? Construction equipment? The Japanese have better.

Re:Silly Russians (1)

Required Snark (1702878) | more than 2 years ago | (#41557355)

When I talk critically about the Russians smuggling and not stealing IP on line I am being sarcastic, that is conveying contempt for both Russia and the USA.

When i praise the Chinese for their efficient on line spying I am being ironic, saying the opposite of what I really feel.

When I talk about a lack of Federal policy on protecting US assets from cyber attacks, I am being accurate. There is no enforceable federal policy about protecting infrastructure or intellectual property on line. There are a lot of rules about ITAR and security for military programs, but nothing in the civilian sector.

When you talk about commercial heavy equipment that has no export controls, you are being obtuse. This shows a lack of intelligence on your part.

I hope that clears things up for you.

Re:Silly Russians (1)

k6mfw (1182893) | more than 2 years ago | (#41550337)

Don't they realize that all "US" electronics are made in China?

[snip]

The Russians need to get with the program and copy what the Chinese are already doing. They should be spending more money on PACs, and stop wasting effort on smuggling.

Yes, that is what I'm thinking whenever there is "high tech export" which is becoming a bankrupt statement. What the Russians and Americans should learn from Chinese is how to build things. OK so I'm getting factious.

Anyway, Happy Sputnik Day everyone.

Re:Silly Russians (0)

Anonymous Coward | more than 2 years ago | (#41551871)

I live in Houston, and I can think of at least three local companies off the top of my head that make memory systems and microcontrollers from scratch.

should you or any of your IMF agents be caught ... (0)

Anonymous Coward | more than 2 years ago | (#41548179)

or killed the secretary will disavow any knowledge any knowledge of your activity.
Good luck, Jim.

Gone rogue (1)

CdBee (742846) | more than 2 years ago | (#41548199)

... Russia, that is, has gone rogue. The whole state is corrupt. This however looks like perfectly normal spying and the sort of thing they have always done, and vice-versa.

Don't start complaining until they use radiological weapons on your streets, like they did to us...

What laws were broken? (0)

Anonymous Coward | more than 2 years ago | (#41548213)

It's unclear from the article which specific laws, acts, regulation were broken.

I am going to go on a limb here and assume that the ITAR or EAR or some other legal/regulatory requirement were transgressed.

ITAR and EAR violations are clear no nos and will get you in trouble.

Sounds like Fusion marketing (0)

Anonymous Coward | more than 2 years ago | (#41548235)

"The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers, and microprocessors. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems, and detonation triggers. "

Really? You're saying they can used in detonation triggers? Like an NE555 can? Does any of this commodity stuff have any export restrictions on it?? No?

"Russia does not produce many of these sophisticated goods domestically."

Yes it does, e.g. Cutting edge processor is the ARM chip, which is a UK design and is licensed and made in Russia too:
http://mobile.arm.com/about/newsroom/23893.php

And China makes the bulk of USAs day to day boring stuff like A to D converters:
http://www.alibaba.com/countrysearch/CN/analog-to-digital-converter.html

Samsung makes the fastest SRAM, (they're Korean BTW)
http://www.samsung.com/global/business/semiconductor/

Presumably this is timed just after the Houston Fusion center in particular was implicated in talking complete terrorist BS?

Southwest Houston is a Russian community (2)

concealment (2447304) | more than 2 years ago | (#41548353)

Starting in the 1970s, Russian immigrants came to this area in great numbers. They are bordered on the South by a large Hispanic population, on the East by a large East Asian and Indian population, and on the West by rural communities and exburbs.

Re:Southwest Houston is a Russian community (0)

Anonymous Coward | more than 2 years ago | (#41549935)

Cuisine: Grilled taco masala with a shot of vodka?

Re:Southwest Houston is a Russian community (1)

Aighearach (97333) | more than 2 years ago | (#41556465)

Grilled beet tacos with plum wine.

Huh. That's news to me! (0)

Anonymous Coward | more than 2 years ago | (#41548499)

I wasn't aware Foxconn started up a plant in the USA.

It's a damn shame (0)

Anonymous Coward | more than 2 years ago | (#41548753)

We dont hang traitors as much as we used to.

Now there's a fishy Russian surname... (0)

Anonymous Coward | more than 2 years ago | (#41548935)

Alexander Fishenko, no kidding? I realize that not every Russian is of Slavic origin, but this is just too thin-veiled Russification or perhaps Ukrainization of a Western (Germanic? English?) family name. Naturalized Russians of Western origin I've heard of have their original family names, perhaps only transcribed, but without Slavic suffixes.

Re:Now there's a fishy Russian surname... (1)

shutdown -p now (807394) | more than 2 years ago | (#41550621)

There's nothing unusual in a Russian or Ukrainian guy with a family name of "Fishenko" - it's not a "Western Germanic/English family name" by any measure. Besides, he was born in Kazakhstan.

Ho Hum Article (1)

edibobb (113989) | more than 2 years ago | (#41549321)

It's interesting that this article didn't make the front page of latimes.com, washingtonpost.com, or nytimes.com. In 1987, when Toshiba sold milling machines to Russia for submarine propeller manufacture, it was a huge controversy. I believe we are living in a safer world.

Re:Ho Hum Article (1)

ColdWetDog (752185) | more than 2 years ago | (#41550557)

I believe we are living in a safer world.

Or just a dumber one.

So, as a Russian... (2)

shutdown -p now (807394) | more than 2 years ago | (#41550693)

... I would like to know if what they stole is actually of use? Or is it some kind of commercial grade stuff that you can buy in Radio Shack anyway, and they just pretended to run some super secret covert ops to ship it over to get funding? (given the level of corruption, this wouldn't be unusual or unprecedented)

I mean, c'mon, I pay taxes which are used to fund this stuff, and then they squander them on the likes of Anna Chapman.

Re:So, as a Russian... (1)

Anonymous Coward | more than 2 years ago | (#41554151)

The real waste here is in Russian procurement bureaucracy, which has in this case also revealed US export violations. What, 15 units of MAX1480EAEPI at $25 apiece? You need to publish a government tender openly online for that shit [sozvezdie.su] and hold a competition, for every foreign intelligence service to peruse at their leisure? I can order this qty myself online in 5 min from stock at Digi-Key [digikey.ca] (or a number of other suppliers worldwide) and ask my university for reimbursement, no questions asked.

no inteligence involved (1)

perles (1855088) | more than 2 years ago | (#41551699)

"... A Russian foreign ministry spokesman has denied there were any intelligence connections in the affair." To be busted obviously no inteligence was involved.

Pre-election propaganda (1)

Anonymous Coward | more than 2 years ago | (#41552817)

Russia has the capability to make its own microprocessors. I very much doubt that any of this gear was intended for official military uses, and it seems very unlikely that the Russian military would ever allow it.
I understand that the components of recent Russian radar systems like the NIIP Tikhomorov EASA system (including GaAs Tx/Rx modules), are all domestically manufactured, as is the multi-core VLIW CPU at the heart of its computer system.
There are a few instances of usage of commercial grade FPGAs in Russian military equipment, like Almaz-Antei missile systems, but nothing exotic that can't be bought from any electronics catalogue.
This sounds more like pre-election propaganda from the ruling US regime.

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