On November 6, 2019, in the Eastern District of New York, Jack Cabasso, Frances Cabasso, Jonathan Lasker, Alan Schwartz, and Aventura Technologies, Inc. (Aventura), were charged with conspiracy to commit wire fraud and mail fraud, money laundering conspiracy, and unlawful importation.
According to the criminal complaint, from between about August 2006 and November 2019, the defendants knowingly and intentionally conspired to devise a scheme to defraud U.S. Government agencies, contractors, and private sector customers by falsely stating that merchandise was made by Aventura and in the United States. As stated in a Department of Justice press release dated November 7, 2019, under Federal Government procurement laws and regulations a product's country of origin can impact a procurement officer's decision to purchase a product. In addition, all products imported into the United States must be marked with their country of origin. Over the past decade, Aventura made upwards of $88 million, including over $20 million in Federal Government contracts, while claiming that it was manufacturing its products at its headquarters in Commack, New York. Instead, since at least 2006, Aventura has been importing products primarily from the People's Republic of China and then reselling them as American-made. According to the complaint, the Department of the Treasury has paid Aventura approximately $16.9 million through September 2019.
The defendants also defrauded the U.S. Government by obtaining contracts set aside for women-owned small business under the false pretense that Aventura was controlled by Frances Cabasso when, in fact, Aventura was controlled by Jack Cabasso.
If convicted, the defendants could face up to 20 years' imprisonment on each charge in the complaint.
This investigation was worked jointly by the Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, the General Services Administration Office of Inspector General, the Defense Criminal Investigative Service, the Internal Revenue Service (IRS)- Criminal Investigation, the Air Force Office of Special Investigations, the Naval Criminal Investigative Service, Customs and Border Protection, the Department of Energy Office of Inspector General, the Army Criminal Investigation Division, and the Treasury Office of Inspector General.
Source: The facts in this case narrative come from the following publicly available documents: E.D.N.Y. Crim. Compl. filed Nov 6, 2019; and E.D.N.Y DOJ Press Release dated Nov 7, 2019.
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