New Jersey Firm Accused of Illegally Supplying Banned Chinese AI Surveillance Cameras
Authorities in the United States have charged a New Jersey-based company, Packetalk, with illegally supplying Chinese AI surveillance cameras that are banned in the country. According to reports from Court Watch and 404 Media, the company is alleged to have deceived state and local agencies into purchasing the banned cameras, resulting in a whopping $35 million expenditure. It is believed that Packetalk even facilitated the use of federal Covid recovery funds, totaling $15 million, to pay for the rebranded equipment.
The cameras in question are reportedly rebranded products from Dahua, a Chinese surveillance company. Dahua products were blacklisted in 2019 due to their involvement in the mass detention and persecution of Uyghur Muslims in China. The systems were also flagged as a potential national security risk by the US government. Furthermore, there are allegations that Dahua’s products supported Russia in its invasion of Ukraine.
Packetalk’s executives have denied any wrongdoing, but they did admit to marketing facial recognition technology based on ethnicity analysis using biometric data. It is important to note that the complaint against Packetalk does not directly implicate Dahua in any illegal activity.
According to Court Watch, a federal criminal complaint charges Packetalk CEO Tamer Zakhary with wire fraud and false statements related to the sales pitches and consultations that concealed the true nature of the banned systems. The complaint refers to incidents where Packetalk covered Dahua logos on the cameras with its own branding and altered their color. While the cameras supported facial recognition using Dahua software, Zakhary claims that only Packetalk’s software was running on the cameras sold in the US. The rebranded Dahua cameras were marketed as capable of license plate recognition.
The complaint also cites email exchanges between Zakhary and Dahua, suggesting Zakhary attempted to secure a discounted price due to the ban. In one email, an official appears to caution Zakhary that importing the banned cameras is illegal under federal law. The complaint further alleges that executives discussed moving the system storage to Mexico to conceal Dahua’s involvement.
Zakhary, during conversations with FBI agents, reportedly stated that the rebranded cameras had replaced all valuable components with domestic alternatives before being sold. Packetalk seems to be a small storefront business that sells surveillance products to public safety officials.
It is crucial to note that these accusations and charges are yet to be proven in court. The legal proceedings will determine the outcome and any potential consequences for Packetalk and its executives.
