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Counterfeit Scam Mastermind Sentenced for Fake Cisco Network Gear
A resident of Florida has been sentenced to 78 months in prison for orchestrating a counterfeit scam that raked in $100 million in revenue from phony networking equipment, putting the security of the US military at risk. The announcement was made by the US Department of Justice (DOJ) on Thursday.
Scheme Details and Legal Consequences
Onur Aksoy, also known as Ron Aksoy and Dave Durden, pleaded guilty on June 5, 2023, to charges of conspiring to traffic in counterfeit goods, commit mail fraud, and commit wire fraud. The operation, outlined in an indictment, spanned from August 2013 to at least April 2022. Aksoy utilized 19 companies, 15 Amazon storefronts, 10 eBay listings, and direct sales under the umbrella of Pro Network Entities to peddle thousands of computer networking devices sourced from China and Hong Kong. These goods were passed off as genuine Cisco products through the use of counterfeit packaging, labels, and documentation.
If authentic, the legitimate products would have fetched a value exceeding $1 billion. As part of his sentence handed down on May 1, Aksoy is required to pay $100 million in restitution to Cisco, a $40,000 fine, and undergo three years of supervised release. Additionally, a future court date will determine the sum Aksoy must compensate his victims.
Impact on Military and Government Applications
The phony Cisco equipment propagated by Aksoy’s operation infiltrated sensitive platforms used by the US military, including systems supporting Air Force, Army, and Navy deployments. The gear, which had an estimated retail worth in the hundreds of millions of dollars, was employed in various military applications, including flight simulators for fighter jets and other aircraft.
Bryan Denny, from the US Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service, stated that Aksoy intentionally deceived the DoD by introducing counterfeit products that frequently malfunctioned or failed entirely. Military bases and systems, such as those underpinning Air Force F-15s and Navy P-8 aircraft, were found to contain the phony Cisco gear.
The DOJ’s announcement emphasized that these counterfeit devices infiltrated sensitive military and government systems, encompassing both combat and non-combat operations of the US Army, Air Force, and Navy. Noteworthy platforms impacted included the F-15 and F-18 fighter jets, AH-64 Apache attack helicopter, P-8 maritime patrol aircraft, and B-52 Stratofortress bomber. Moreover, these fake devices also seeped into critical facilities like hospitals and educational institutions.
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