Supply Chain Issue

A Florida-based CEO was charged with selling
$1 billion worth of counterfeit Cisco equipment imported from China, according
to the Department of Justice.

 The Justice Department announced in a release
on Friday that they arrested 38-year-old Onur Aksoy for allegedly running
multiple stores that sold fraudulent Cisco hardware. The DOJ alleged that Aksoy
imported the fake equipment from China and resold them to included hospitals,
schools, government agencies, and the military under the company name “Pro
Network” to make it appear legitimate.

 According to a DOJ complaint filed in 2013,
Aksoy bought counterfeit hardware at “95 to 98%” lower than authentic
Cisco products. The counterfeit hardware malfunctioned, damaging the users’
network and operations and costing them tens of thousands of dollars.

 Aksoyn”allegedly ran at least 19
companies formed in New Jersey and Florida as well as at least 15 Amazon
storefronts, at least 10 eBay storefronts, and multiple other entities,”

 According to the DOJ statement, between 2014
and 2022, Customs and Border Protection seized 180 shipments of counterfeit
Cisco devices being shipped to Pro Network. Under the alias of “Dave
Durden,” Aksoy falsely submitted paperwork to CBP to avoid investigation.
In July 2021, federal agents obtained a warrant to search Aksoy’s warehouse,
where they seized 1,156 counterfeit Cisco hardware valued at over 7 million

 “We are committed to maintaining the
integrity and quality of Cisco products and services. Cisco is grateful to law
enforcement and customs officials for their tremendous collaboration in this
investigation and to the DOJ for bringing the perpetrator to justice,”
Cisco said in a statement to PC Mag.

 According to the DOJ, Aksoy is charged with
conspiracy to traffic in counterfeit goods and to commit mail and wire fraud,
three counts of mail fraud, four counts of wire fraud, and three counts of
trafficking in counterfeit goods. Prosecutors have set up a website for anyone
who believed they were a victim of Aksoy’s companies.