Federal agents early Thursday raided a New York tech firm suspected of selling Chinese-made equipment to the U.S. military that it allegedly claimed had been manufactured in the U.S.
The alleged fraud is raising security concerns about materials that wound up being used by the U.S. Navy and other military branches.
Federal agents were seen executing a search warrant at the headquarters of Aventura Technologies headquartered in Long Island about 9 a.m.
Earlier in the day, six current and former executives and employees were arrested, according to NBC New York. They are expected to appear in federal court in Brooklyn Thursday afternoon.
U.S. Attorney Richard Donoghue and various agency heads are expected to detail the charges at a news conference.
The arrests come amid ongoing concerns about Chinese economic espionage and theft of trade secrets. Some of the equipment was surveillance and security related technology sold to both U.S. government agencies and private customers.
The raid on Long Island involved dozens of investigators seen hauling away containers of equipment. Trucks and other law enforcement vehicles could be seen as the search continued at Aventura, located in Commack.
A call to the company for comment was not immediately returned. The U.S. Attorney's Office for the Eastern District of New York also did not return a request for comment.