Aventura Inc., along with its senior management, has pleaded guilty to fraud and other charges for selling Chinese-made security and surveillance equipment to the U.S. military, falsely labeling the products as made in the USA. This scheme involved customers such as the Navy, the Air Force, and the Department of Energy, potentially compromising security due to the known cybersecurity vulnerabilities of the equipment sold.
The company’s fraud was exposed in 2019 when federal authorities charged Aventura and its senior management with various offenses, leading to all individual suspects pleading guilty. As part of its plea agreement, Aventura will dissolve and forfeit significant assets, including more than $3 million in seized assets and a 70-foot yacht owned by CEO Jack Cabasso and his wife.
U.S. Attorney Breon Peace highlighted the defendants’ deceitful practices, including masquerading as a women-owned business to corrupt the U.S. military supply chain. Aventura’s revenue from sales between 2008 and 2019 amounted to $112 million, with over $20 million derived from government contracts.
The company’s owner, Jack Cabasso, took elaborate measures to conceal the Chinese origin of the products, including altering circuit boards and engaging in email exchanges to hide the name of a Chinese digital video equipment manufacturer in server communications. Additionally, Aventura created a sham “lab” to mislead visitors about conducting classified government work.
Furthermore, Cabasso falsely claimed his wife as the company’s CEO to qualify as a woman-owned small business, thereby gaining access to additional government contracts. Both Cabassos are awaiting sentencing, with Jack Cabasso having a history of convictions related to fraud and grand larceny dating back to the 1980s.
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