The recent revelations from Hunterbrook’s investigative report on the Memphis Grizzlies’ owner, Robert Pera’s technology company, Ubiquity, have shocked the NBA world. As per the report, the wireless technology innovated by the former Apple employee was used by the Russian military for “crimes against humanity” in Ukraine. The findings have now taken a massive hit on the company’s finances.
Ubiquity Inc.’s stock plunged 8% on Tuesday, January 27, after the findings were shared publicly. The report mentioned that the Ubiquiti radio bridge antennae serve a critical communications need for the Russian military in Ukraine, including for drone operations.
Pera became the youngest owner of an NBA team in 2012 after acquiring major shares of the Memphis Grizzlies. At 34, he was featured in the Forbes list of the 10 youngest billionaires in the world. His innovation, the Super Range Series, was believed to help the governments and service providers reach far-fetched rural locations.
However, the Hunterbrook report has revealed some shocking findings that might cause deeper problems for the team owner. The Grizzlies franchise, which is already amid Ja Morant trade talks and rebuilding for the future, will have its hands full if NBA commissioner Adam Silver decides to look into the matter.
NBA team owner Robert Pera’s Ubiquity was fined in 2014 for sanctions compliance
The Hunterbrook report on Ubiquity’s involvement in Russia’s operation in Ukraine also revealed that the company was also fined earlier for sanctions compliance in 2014, when the conglomerate was found diverting $589,000 worth of prohibited equipment to sanctioned Iranian entities.
Highlighting how easily such prohibited equipment reached the Russian forces, the report added:
“Posing as a Russian military procurement officer, a reporter contacted Russian vendors and multiple official Ubiquiti distributors worldwide. Nearly a dozen agreed to sell export-banned equipment. One vendor even shared thank-you letters they said were for providing Ubiquiti equipment to the Russian military.”
“Industry experts told Hunterbrook that Ubiquiti likely has the technical means to trace products appearing inside Russia — and may already be doing so.”
Even though the company, Ubiquity Networks, has admitted that “we do not have any visibility” over purchases from its distributors, the report mentioned that legal experts have stated that it was not a viable defense:
““Ignorance is not really a practical excuse, or rather, a legal excuse,” a former senior State Department sanctions official told Hunterbrook.”
The Grizzlies are 12th in the Western Conference, and Robert Pera’s alleged involvement in such events will also impact the team on the court. There has already been a negative sentiment attached to the team due to their star guard, Ja Morant’s, antics on and off the court.
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