Feds Charge Northport Couple with Fraud and Money Laundering

Feds Charge Northport Couple with Fraud and Money Laundering

Aventura in Commack was cited by feds for allegedly giving Chinese-made technology to the U.S. Govt. Photos from U.S. Attorney’s Office

The U.S. Attorney’s Office is charging a Commack company, Aventura Technologies Inc., and seven current and former employees with allegedly selling Chinese-made electronic equipment with known cybersecurity vulnerabilities to the federal government and private customers, while falsely representing the equipment as made in the United States.

Yacht seized from the owners of Commack business Aventura. Photos from U.S. Attorney’s Office

The individual defendants charged in the alleged scheme include Northport residents Jack Cabasso, Aventura’s managing director and de facto owner and operator, and his wife Frances Cabasso, purported owner and chief executive officer. The Cabassos were also charged with money laundering proceeds from the alleged schemes and fraud for falsely representing Frances Cabasso as chief executive of Aventura to gain access to government contracts set aside for women-owned small businesses. The government froze approximately $3 million in 12 financial accounts that contain proceeds from the alleged unlawful conduct and seized the Cabassos’ 70-foot luxury yacht Tranquilo, which was moored in the gated community where the Cabassos reside. 

“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 risk to the country’s national security posed by secretly peddling made-in-China electronics with known cyber vulnerabilities,” stated U.S. Attorney for the Eastern District of New York Richard Donoghue in a release. 

In addition to Aventura and the Cabassos, the company’s senior executives Jonathan Lasker of Port Jefferson Station, Christine Lavonne Lazarus of Shirley and Eduard Matulik of North Massapequa were charged in the complaint, along with Wayne Marino of Rocky Point, a current employee, and Alan Schwartz of Smithtown, a recently retired employee. 

If convicted, the defendants each face up to 20 years imprisonment on each charge of the complaint, according to the U.S. Attorney’s Office. No trial dates have been set, according to John Marzulli in the U.S. Attorney’s Office. 

The attorney for Frances Cabasso was out of town. Jack Cabasso’s attorney did not respond before press time to messages left on his answering machine.

Equipment labeled with the Aventura logo. Photos from U.S. Attorney’s Office

“With the arrests, the defendants’ brazen deceptions and fraud schemes have been exposed, and they will face serious consequences for slapping phony ‘Made in the U.S.A.’ labels on products that our armed forces and sensitive government facilities depend upon,” Donoghue said.

Case documents state that the company lied to its customers, including the U.S. military, for more than a decade. Aventura reportedly generated more than $88 million in sales revenue from November 2010 and the charged scheme has allegedly been ongoing since 2006. 

“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 William Sweeney Jr. 

The money laundering scheme allegedly entailed siphoning illegal profits out of the company through a network of shell companies and intermediaries, including transferring hundreds of thousands, and in some cases, millions of dollars into an attorney escrow account belonging to an unnamed Long Island-based law firm, where the funds were used to purchase homes, in some cases for relatives. 

The FBI has established an email hotline for potential victims. Anyone with information regarding Aventura’s alleged crimes or anyone who believes they have been a victim can send an email to NY-AventuraVictims@fbi.gov. 

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