Microelectronics Smuggler Posobilov Sentenced to 135 Months for Treasonous Sales

United States District Court in Brooklyn served up a heavy dose of justice today as Alexander Posobilov was sentenced to 135 months’ imprisonment for conspiring to export microelectronics to the Russian military and attempting to launder money.

This gritty saga began in October 2012 when Posobilov, along with ten other individuals and two corporations, ARC Electronics, Inc., and Apex System, L.L.C., were indicted for their roles in a sprawling conspiracy. Posobilov and two co-conspirators faced trial and were convicted on all counts in October 2015, while five others pleaded guilty and three remain at large.

The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General for National Security Mary B. McCord. ‘Posobilov helped lead a criminal operation that profited from the unlawful sale and export of American microelectronics to the Russian military,’ Capers said.

Posobilov’s role as procurement manager at ARC Electronics was pivotal. He managed a team obtaining advanced microelectronics for export to Russia, evading government licensing systems in the process. From 2002 to 2012, ARC shipped approximately $50,000,000 worth of technology to Russia, with key clients being certified suppliers of military equipment to the Russian Ministry of Defense.

Posobilov and his co-conspirators used false end user information and concealed their exporter status to induce manufacturers. The ultimate recipients of ARC’s products included a research unit for the Russian FSB and entities building air and missile defense systems, as well as electronic warfare systems.

The sentencing today took place before United States District Senior Judge Sterling Johnson, Jr. Assistant United States Attorneys Richard M. Tucker and Una A. Dean, along with Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, led the prosecution.