Feds: Florida Man Pleads Guilty In Counterfeit Cisco Case
Onur Aksoy’s companies ‘imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco,’ the DoJ alleged.
The U.S. Department of Justice Tuesday said Onur Aksoy, the subject of a long-term investigation into the U.S. sales of counterfeit Cisco networking equipment, has pleaded guilty.
The DoJ said that Aksoy, a Florida resident with dual U.S.-Turkey citizenship, ran well over 40 companies that imported tens of thousands of networking devices falsely labeled as new Cisco equipment. That included at least 19 reseller companies based in Florida and New Jersey, about 15 Amazon storefronts, and at least 10 eBay storefront, which the DoJ referred to as Pro Network Entities.
Aksoy’s businesses worked with Chinese and Hong Kong companies to manufacture the fraudulent and counterfeit Cisco equipment, the DoJ said.
His companies “imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco,” the DoJ said.
As a result of selling those goods, which had an estimated total retail value in the hundreds of millions of dollars, Aksoy’s Pro Network Entities generated over $100 million in revenue while Aksoy himself pocketed millions of dollars.
Aksoy, also known as Ron Aksoy and Dave Durden, was originally indicted by the DoJ in July of 2022.
Cisco did not respond to a CRN request for more information. However, the company has said that counterfeit networking gear is a huge problem.
Kebharu Smith, director of Amazon’s counterfeit crimes unit, which assisted in the case with a referral to the DoJ, wrote in a blog post that it appreciated the opportunity to work with Cisco on the case.
In that same blog post, Al Palladin, head of global brand protection at Cisco, wrote, “We are committed to protecting our valued customers and legitimate authorized Cisco channel partners and maintaining the integrity and quality of Cisco products and services. We thank our colleagues in U.S. Law Enforcement and the Department of Justice for their investigative actions, the successful indictment, and the work that led to today’s outcome. The Cisco Brand Protection team also appreciates the strong collaboration with Amazon’s CCU for jointly making the criminal referral that brought this individual to justice.”
“This guilty plea sends a strong message to bad actors that selling counterfeits has severe consequences. We are grateful for the collaboration with Cisco and the work of the U.S. Department of Justice to bring this counterfeiter to justice,” Smith wrote.
Oliver Tuszik, Cisco’s senior vice president of global partner sales, said in a 2021 company video that Cisco that year partnered with law enforcement agencies across multiple countries to conduct 74 raids and customs interceptions.
“Compared to the year before, there were 450 percent more counterfeit goods confiscated, a reflection of our growing commitment to addressing this issue,” Tuszik said. “We will continue to focus on this.”
The Pro Network Entities imports from China and Hong Kong were typically older, lower-model products, and many had been sold or discarded, the DoJ said.
“Chinese counterfeiters then modified [them] to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials,” the DoJ said.
Those products had multiple performance, functionality, and safety problems, and failures or malfunctions caused significant damage to the networks and operations of users including hospitals, schools, government agencies, and the military, the DoJ said.
Between 2014 and 2022, the U.S. Customs and Border Protection seized about 180 shipments of counterfeit Cisco devices coming from China and Hong Kong. Those shipments were often broken up into smaller parcels and shipped on different days to false addresses to help escape detection, the DoJ said.
Cisco sent seven cease and desist letters between 2014 and 2019 to Aksoy, who responded at least twice with forged documents, the DoJ said. In July of 2021, DoJ agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices worth over $7 million at retail prices.
Aksoy pleaded guilty to conspiring with others to traffic in counterfeit goods, to commit mail fraud, to commit wire fraud, and actual mail fraud, the DoJ said. Under the conditionally accepted agreement, he faces four to six-and-a-half years in prison, must forfeit $15 million in illicit gains, and must make full restitution to his victims, with the final sentence to be determined, the DoJ said.
According to the DoJ, these 19 Pro Network Entities companies were selling counterfeit Cisco equipment imported by Aksoy:
* Pro Network LLC
* Netech Solutions LLC
* Target Network Solutions LLC
* Easy Network LLC
* ACE NETUS LLC (aka Ace Network)
* My Network Dealer LLC
* 1701 Doral LLC
* Maytech Trading LLC
* NFD Trading LLC
* Kenet Solutions LLC
* Team Tech Global LLC
* Tenek Trading LLC
* The Network Gears LLC
* All Networking Solutions LLC (aka All Network)
* San Network LLC
* Pro Network US Inc.
* Jms Tek LLC
* Renewed Equipment LLC
* Pro Ship US LLC
Amazon storefronts in the Pro Network Entities list include:
* Albus Trade Hub
* EasyNetworkUS
* Get Better Trade
* Mercadeal
* Netech Solutions
* Netkco LLC
* NFD Trading LLC
* Palm Network Solutions
* Renewed Equip
* Servtaur
* Smart Network
* SOS Tech Trade
* Target-Solutions
* TeamTech Global
* TradeOrigin US
In addition, there were these Pro Network Entities eBay storefronts:
* connectwus
* futuretechneeds
* getbettertrade
* getontrade
* maytechtradingllc
* netechsolutions
* netkco
* nfdtrading
* smartnetworkusa
* tenektradingllc