Two convicted in U.S. over counterfeit Cisco gear

A federal jury found that the two persons had altered product labels to defraud U.S. customers

A U.S. federal jury convicted two people this week over a scheme to import and sell counterfeit Cisco-branded networking equipment, the Department of Justice said on Thursday.

The jury found Chun-Yu Zhao of Virginia guilty of conspiracy and 15 other counts related to import fraud and counterfeit labeling, the department said in a statement. Zhao ran the U.S. headquarters of a Chinese company that stole intellectual property and defrauded customers, the statement said, citing U.S. Attorney Neil MacBride.

Zhao took millions of dollars from unsuspecting U.S. consumers and businesses, MacBride said.

The counterfeit case is part of a wider justice department effort to fight a growing number of intellectual property crimes. Authorities in the U.S. and Canada have been looking into import fraud involving China since 2005.

The jury's Tuesday verdict also convicted a second suspect, Donald Cone of Maryland, of conspiracy, the statement said.

Cone, Zhao and Zhao's family members in China had operated a "large-scale counterfeit computer networking equipment business" under the name Han Tong Technology (Hong Kong), the justice department said. Zhao and others working with her had defrauded U.S. buyers through a company in Virginia called JDC Networking.

JDC Networking used pirated software to alter Cisco products and falsify labels, the department said. Zhao used different names and addresses on import documents and hid millions of dollars of counterfeit proceeds through bank accounts and property under the names of family members in China, the statement said.

Each suspect faces a maximum sentence of five years in prison and a US$250,000 fine for conspiracy when sentenced as scheduled in August. Zhao could also get decades more prison time and more than $2 million in additional fines for the other charges, the justice department said.

As of May 2010, efforts to stop counterfeit networking hardware in the U.S. had led to 30 felony convictions and seizures of $143 million worth of fake Cisco hardware.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags CriminalCisco SystemsNetworkingwirelesslegal

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?