CEO of dozens of companies and entities indicted under scheme in trafficking in fraudulent and counterfeit Cisco network equipment estimated to be worth $1 billion – Department of Justice | Region & Cash

A state grand jury in the District of New Jersey yesterday announced an indictment accusing a Florida resident of conducting a massive multi-year operation to traffic in fraudulent and counterfeit Cisco networking equipment with an estimated retail value in excess of $1 billion to have performed.

According to the indictment, Onur Aksoy, aka Ron Aksoy, aka Dave Durden, 38, of Miami, allegedly managed at least 19 businesses established in New Jersey and Florida, as well as at least 15 Amazon stores, at least 10 eBay stores, and several other businesses (collectively, the “Pro Network companies”) that imported tens of thousands of fraudulent and counterfeit Cisco network devices from China and Hong Kong and resold them to customers in the United States and abroad, misrepresenting the products as new and genuine. The operation reportedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

According to the indictment, the devices the Pro Network units imported from China and Hong Kong were typically older, lower-model products, some of which had been sold or discarded, which Chinese counterfeiters then modified to appear as genuine Versions of new, improved devices appear and more expensive Cisco devices. As claimed, the Chinese counterfeiters often added pirated Cisco software and unauthorized, inferior, or unreliable components – including components designed to circumvent technological measures that Cisco added to the software to verify compliance with software licenses and hardware authenticate. Finally, in order to make the devices appear new, genuine, high quality, and sealed by Cisco, the Chinese counterfeiters allegedly added fake Cisco labels, stickers, boxes, documentation, packaging, and other materials.

The deceptive and fake products sold by the Pro Network Entities suffered from numerous performance, functionality, and security issues. Often, they simply failed or otherwise malfunctioned, causing significant damage to their users’ networks and operations — in some cases costing users tens of thousands of dollars. Aksoy’s fraudulent and counterfeit devices’ customers included hospitals, schools, government agencies, and the military.

As detailed in the indictment, between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco equipment shipped to Pro Network entities from China and Hong Kong. In response to some of these seizures, Aksoy allegedly falsely submitted official filings to CBP under the alias “Dave Durden,” an identity he used to communicate with Chinese co-conspirators. To evade CBP scrutiny, Chinese co-conspirators allegedly split the shipments into smaller packages and shipped them on different days, and Aksoy used at least two fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy allegedly continued to order counterfeit Cisco products from the same supplier.

According to the indictment, Cisco sent seven letters to Aksoy between 2014 and 2019 urging him to cease and desist from trading in counterfeit goods. Aksoy reportedly responded to at least two of those letters by getting his attorney to provide fake documents to Cisco. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy is charged with conspiracy to traffic in counterfeit goods and commit mail and wire fraud; three cases of mail fraud; four cases of wire fraud; and three cases of trafficking in counterfeit goods. Aksoy was charged in a criminal complaint filed in New Jersey on June 29 and arrested in Miami the same day.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna of the District of New Jersey; acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Lead Special Agent Bryan Denny of the US Department of Defense, Branch of the Defense Criminal Investigative Service (DCIS); Responsible Special Agent Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Lead Special Agent Peter Tolentino, Naval Criminal Investigative Service (NCIS), White Collar Crime Branch; Responsible Special Agent Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Jason Molina of the HSI Newark Field Office announced today.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or https://edit.justice.gov/usao-nj/united-states-v-onur- aksoy-pro network for more information.

The Pro Network units include at least the following:

HSI, DCIS, GSA-OIG, NCIS and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crimes and Intellectual Property Division, as well as Assistant US Attorney Andrew M. Trombly and Lead Trial Attorney Barbara Ward of the District of New Jersey are following the case.

An indictment is merely an allegation, and all accused are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.