To conceal the Chinese origin of its products, Jack Cabasso, Aventura's owner, took extensive measures. For example, he accused competitors of selling Chinese-made goods while covertly importing and reselling such goods himself. Aventura's corporate headquarters featured a fake "lab," and visitors were falsely informed that a separate building was reserved for classified government work, which Aventura neither owned nor occupied.
Aventura Technologies, Inc. pleaded guilty in federal court in Central Islip to charges of mail and wire fraud conspiracy as well as illegal importation. The plea represents Aventura's extensive and profitable operation to acquire Chinese-manufactured security equipment, such as networked surveillance cameras, and market it as American-made.
This included sales to various U.S. government agencies, military branches, and international customers in both public and private sectors. The illicit scheme commenced in 2006 and persisted until 2019 when the charges were filed. Aventura's sales exceeded $112 million throughout this period.
In 2019, charges were brought against several individuals in connection with the case. Jack Cabasso, the Managing Director and de facto owner and operator of Aventura Technologies, Inc., along with his wife Frances Cabasso, who is purported to be the owner and Chief Executive Officer, were among those charged. Other senior executives charged include Jonathan Lasker, Christine Lavonne Lazarus, and Eduard Matulik, as well as current employee Wayne Marino and recently retired employee Alan Schwartz.
The charges against four of the individuals include defrauding the U.S. government by falsely representing Frances Cabasso as the owner and operator of Aventura to gain access to government contracts reserved for women-owned businesses. In reality, the company was controlled by her husband, Jack Cabasso. The Cabassos are also accused of laundering the proceeds of these fraudulent activities. As part of the case, the government seized the Cabassos' 70-foot luxury yacht, froze approximately $3 million across 12 financial accounts linked to the defendants' illicit conduct and more than 7,000 seized merchandise item.
As alleged, the defendants falsely claimed for years that their surveillance and security equipment was manufactured on Long Island, padding their pockets with money from lucrative contracts without regard for the risk to our country’s national security posed by secretly peddling made-in-China electronics with known cyber vulnerabilities,” stated United States Attorney Donoghue.
Greed is at the heart of this scheme, a reprehensible motive when the subjects in this case allegedly put into question the security of men and women who don uniforms each day to protect our nation,” stated FBI Assistant Director-in-Charge Sweeney. “There is no mistaking the cyber vulnerabilities created when this company sold electronic surveillance products made in the PRC, and then using those items in our government agencies and the branches of our armed forces. I cannot stress enough that we will do everything we can to search out and stop any other company willing to cut corners and pocket profits that endanger the lives of Americans, and make this country less safe.
The individuals who pleaded guilty in the case include Frances Cabasso, Jack Cabasso, and senior executives Jonathan Lasker, Christine Lavonne Lazarus, and Eduard Matulik, as well as employees Wayne Marino and Alan Schwartz.
“This GSA contractor lied about its surveillance and security equipment being made in the United States when it was actually being made in China,” stated GSA Deputy Inspector General Erickson. “Company executives also misrepresented to GSA that the company was woman-owned to gain access to government contracts they otherwise would not have been eligible to receive. We remain committed to investigating contract fraud such as this and holding criminals accountable.”
“The introduction of misbranded parts and materials into the DoD’s supply chain poses a significant risk to America’s military readiness and our national security,” stated DCIS Acting Special Agent-in-Charge Solecki. “We remain committed to working with our law enforcement partners and the Department of Justice, to ensure that individuals and companies who engage in fraudulent activity, at the expense of our nation’s military members, are investigated and prosecuted.”
Between 2008 and November 2019, Aventura generated over $112 million in revenue, including more than $20 million from federal government contracts. The company heavily promoted its products with U.S. flags and "American-made" branding, and its sales team frequently asserted that Aventura was the exclusive U.S. manufacturer of security equipment.
To conceal the Chinese origin of its products, Jack Cabasso, Aventura's owner, took extensive measures. For example, he accused competitors of selling Chinese-made goods while covertly importing and reselling such goods himself. Aventura's corporate headquarters featured a fake "lab," and visitors were falsely informed that a separate building was reserved for classified government work, which Aventura neither owned nor occupied.
During the government's investigation, numerous shipments from China to Aventura were intercepted and marked covertly. Some products, including cameras, were pre-labeled with Aventura's logo and "Made in USA," along with an American flag, before being resold to government agencies, with Aventura falsely asserting their American origin.
“Falsely misrepresenting the country of origin for equipment sold to the U.S. Government that is directly used in support of the safety and readiness of our warfighters is a serious crime,” said NCIS Special Agent-in-Charge Gross. “NCIS is committed to protecting the integrity of the Department of the Navy’s procurement and acquisitions process.”
“Today's plea is a fitting end for those who conspire to defraud the government,” stated Army CID Special Agent-in-Charge Kelly. “We are proud to work alongside our federal law enforcement partners to protect the United States Government from those who seek to misrepresent themselves and their product, thereby threatening the readiness of the U.S. Army and potentially risking the lives of countless soldiers.”
Jack and Frances Cabasso, along with other Aventura executives, falsely claimed multiple times that Frances Cabasso was the chief executive of Aventura. However, in reality, Frances Cabasso's role was mainly on paper; the true chief executive officer of Aventura was Jack Cabasso, with Frances Cabasso playing a minimal role in the company. This misrepresentation allowed Aventura to qualify for government contracts reserved for women-owned small businesses, which are legally defined as businesses owned and managed by women.
Aventura's website and its General Services Administration (GSA) webpage identified the company as woman-owned, and the defendants repeatedly certified to the GSA and informed government procurement officers of this status. For instance, in January 13, 2014, a GSA employee emailed Frances Cabasso to confirm if Aventura Technologies, Inc. was a woman-owned business, to which she replied affirmatively. Aventura secured multiple contracts from the federal government based on its status as a woman-owned business.
“For years, the defendants, while pretending to be a women-owned business, intentionally corrupted the U.S. military supply chain by passing off Chinese-made networked electronics with known vulnerabilities as American-made,” stated United States Attorney Peace. “This case highlights the importance of national and international inter-agency cooperation in securing our cyber supply chain and protecting our military readiness. We will spare no effort in holding accountable those who undermine and threaten the national security of the United States.”
“U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director Russo. “This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle criminal enterprises that seek to defraud the United States government for personal gain while jeopardizing our national defense and causing economic harm to their competitors.”
THANK YOU FOR YOUR TIME
DISCLAIMER
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of The Steven Wick Blog. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
If you decide to purchase any item using our authorized referral/affiliate links, be aware, we may receive a portion of the sales as commission, i.e. if you purchase a product/service.
To shop, select or click buttons, links or images, you will be redirected to product pages. Please, carefully research before you purchase. Feel free to share and leave a comment, we would love to hear from you. Your feedback is very important to us.
For more like this, music, literature, news, fashion, savvy political commentary, and fascinating features, sign up for the Steven Wick News Letter.
We here at the Steven Wick Blog are so proud of our work, we’d like to thank you for being a part of our community. However, our mission to share so much from music, literature, lifestyle to fashion is a 24/7 undertaking! We need your help to continue our work. Your financial donation will help us not only keep the lights on, but enable us run many more stories in the future to come. DONATE HERE
Message Of Gratitude
We deeply appreciate your contribution in making our blog the top brand among customers.
Without you as our readers, we wouldn't have achieved this level of success. Your satisfaction is our utmost priority, and we assure you that we will always be a reliable source for your entertainment needs.
Your trust in us is invaluable, and we are grateful for your generous donations as our readers.
A number of you took an extra effort and opted to contribute as monthly donors. By doing so, your generous contribution is multiplied by twelve throughout the year, thereby amplifying the impact you have on our work. Your dedication truly makes a significant change, and we sincerely appreciate your valuable support.
Your support has been instrumental in our brand's success.
Thank you for being with us throughout the past year.
As we continue to grow and enhance our business, we pledge to prioritize your needs and interests.
Best Regards
The Steven Wick Team
Comments