Two Convicted of Importing Counterfeit Computer Networking Equip
The Justice Department has announced that on May 26, 2011, Chun-Yu Zhao of Virginia and Donald Cone of Maryland, were convicted for their roles in a scheme to import and sell counterfeit Cisco-branded computer networking equipment.
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Defendants Operated Counterfeit Computer Equip Business in Hong Kong
According to the evidence introduced at trial, Zhao, Cone and Zhao’s family members in China operated a large-scale counterfeit computer networking equipment business under the name of Han Tong Technology (Hong Kong) Limited. Zhao and her associates used a number of sophisticated schemes to defraud U.S.-based purchasers through a Virginia-based company called JDC Networking Inc.
Used Pirated Software to Alter Cisco Products, Various Names on Import Docs
JDC Networking Inc. allegedly altered Cisco products by using pirated software, and created labels and packaging in order to mislead consumers into believing the products it sold were genuine Cisco products. To evade detection, Zhao used various names and addresses in importation documents, and hid millions of dollars of counterfeit proceeds through a web of bank accounts and real estate held in the names of her family members in China.
Zhao Faces Max Sentence of Over 20 Yrs in Prison, Over $2M Fine on Charges
In addition to the conspiracy conviction, Zhao was convicted of 15 additional counts, including importation fraud, trafficking in counterfeit goods and labels, false statements to law enforcement, false statements in naturalization and money laundering.
At sentencing, the defendants face a maximum sentence of five years in prison and a $250,000 fine on the conspiracy charge. Zhao also faces 20 years in prison and a $250,000 fine for each count of importation and sale of improperly declared goods and a maximum of 10 years in prison on each count of trafficking in counterfeit goods and a $2 million fine. She also faces additional prison sentences and fines on the other charges.