Members of alleged espionage ring seek temporary freedom

Federal agents picked through garbage, spied on phone calls and captured reams of email as they went after a Houston businessman now accused of leading a scheme to ship sensitive U.S. technology to Russia's military.

The 11-person ring, allegedly led by Alexander Fishenko, is not accused of espionage, as classified documents were not given to Russia, but of breaking U.S. law by sending loads of protected microelectronics that can be used for guiding anti-ship missiles or radars as well as have civilian-world uses.

One of the most damning yet simplest bits of evidence made public so far came from the mouths of one of the company's managers while being interviewed over the phone by an employee working on a college paper and seeking to understand how Fishenko's company, ARC Electronics, got around strict export laws and avoided suspicion.

The answer: "We're lying."

In another conversation, the manager, Alexander Posobilov, is asked by an employee in Russia, who is among three fugitives in the case, what would happen if word gets out about what is going on: "We will be f-----."

Those words were among thousands recorded by the FBI. The conversations leave little doubt at least some of the persons charged likely knew they were doing something dubious.

Three people charged, including Fishenko, appealed Wednesday to U.S. Magistrate Judge George C. Hanks Jr. to free them on bond pending trial. All appeared in court wearing green prisoner uniforms and shackled at the waists and ankles as about two dozen family members and friends looked on.

The hearing is to continue Thursday.

The eight defendants who have been arrested are Slavic country immigrants, several from Russia, who now live in Houston. Most if not all have no known criminal records. Several are U.S. citizens with extended family here, although they have been issued passports by both countries.

No aid from consulate

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Members of alleged espionage ring seek temporary freedom