Bail hearing to be held in Russian electronic scam

Associated Press
The Russian Foreign Ministry headquarters seen reflected in a shop window in Moscow on Thursday, Oct. 4, 2012.  US prosecutors allege that naturalized U.S. citizen  Alexander Fishenko and six others "engaged in a surreptitious and systematic conspiracy" to obtain highly regulated technology from U.S. makers and sold them to Russian authorities. Fishenko and six others charged in the alleged scheme are expected to appear Thursday morning in U.S. Houston federal court.  (AP Photo/Alexander Zemlianichenko)
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The Russian Foreign Ministry headquarters seen reflected in a shop window in Moscow on Thursday, Oct. 4, 2012. US prosecutors allege that naturalized U.S. citizen Alexander Fishenko and six others "engaged in a surreptitious and systematic conspiracy" to obtain highly regulated technology from U.S. makers and sold them to Russian authorities. Fishenko and six others charged in the alleged scheme are expected to appear Thursday morning in U.S. Houston federal court. (AP Photo/Alexander Zemlianichenko)

HOUSTON (AP) — The owner of a Texas microelectronics firm accused of illegally selling military-grade electronics to Russia faces a hearing to determine whether he can be released on bail.

Alexander Fishenko, who owns Arc Electronics Inc., and seven of his employees were arrested last week accused of selling cutting-edge microelectronics to the Russian military and intelligence agencies. Fishenko and three of his employees will appear Wednesday before a judge in Houston.

Authorities say Arc resold microelectronics to Russia for a potentially wide range of military uses, including radar, surveillance and weapons guidance systems, and detonation triggers.

An FBI agent testified Friday that Arc employees hid from U.S. manufacturers that they were reselling their goods to Russian agencies.

Fishenko is also accused of money laundering and operating as an unregistered Russian government agent.

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