Security company illegally sells Chinese-made goods

A security and surveillance company was charged with marketing Chinese-made goods as American-made.
3:49 | 11/08/19

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Transcript for Security company illegally sells Chinese-made goods
Thank you and bags more than half a dozen executives of those of us security and surveillance company were arrested yesterday. Apparently they were claiming that their equipment was made in the USA when it was allegedly made in China instead. And our air theaters he joins us now with these. I needed its plants because what is the issue here in how did and B I find out about well. The issue is that this company aventura technologies which is based on Long Island in suburban New York. Was telling the US government the US military which bought tens of millions of dollars worth of the security and surveillance equipment. That the products were made in America and by law some of the stuff needs to be made in America or at least from a very small list of of particular countries. But it turns out federal prosecutors in Brooklyn say that. The equipment was actually made in China. Imported into the United States with false labels they took off the made in China sticker and slapped on and made in the USA sticker. And then this was installed. That army and air force bases on naval ships and at government agencies all around the country and they found out about it. Only in 2018 to scheme was money for thirteen years. But in 2018. Someone at an air force base was looking at eight a piece of equipment. And that this was. Just a security camera. And noticed that the software. Had a Chinese insignia. And they ran. The firmware and they figured out that actually it was made in China Customs and Border Protection started opening up a lot of boxes. And discovered that for thirteen years tens of millions of dollars' worth of equipment was all made in China. It's unbelievable because it's not just about fraud this is also a security risk in fact prosecutors made mention of that they said this company treated. National security for a profit and it and they put soldiers and and sailors and airmen at risk and and Marines as well they they put government contractors at risk. All because a lot of this material. Had known as cyber vulnerabilities in your talking about night vision cameras and and other kinds of surveillance gear. And if the Chinese decided to hack into it they could have and window right into what the US military was doing. It's unbelievable it's also unbelievable because I was just talking to yesterday and we're talking about the former Twitter employees. Accused of spying. Oh on behalf of Saudi Arabia and now this you went off to report this story in your back with this it's like. Can we just assume that nothing is safe. I mean it if it feels like that right social media. They have the equipment that's watching you while you pass through here you know your office to get inside it it's it is scary and in this particular case. The authorities said that this equipment for the last thirteen years has been installed everywhere and may still be in use and so as you see on your screen. They moved to sees a lot of material. From Ivan Tora technologies at their headquarters. They were most interested in seizing shipping records so they can track all the equipment see where it went in if it's still being used somewhere. Remove it. In just before you go -- I mean you cover so many of these cases are you shocked by any of this stuff anymore and it it's hard to be shocked but this one. Is a little funny because that the CEO of the company was also claiming that his wife's. Was the true CEO so he could get a tax break to make it women and minority owned business stoppage in fact he was the CEO he was also claiming I think as he was theory maybe he was gonna get caught. At some of his competitors we're importing stuff from China and he was warning about that. Turns out it was his company along. Crazy times we're living in. My goodness on air New Jersey thanks for giving us the updates we appreciated as always good to see you.

This transcript has been automatically generated and may not be 100% accurate.

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