Two will receive up to 20 years for sale of counterfeit products of Cisco

The federal court of the USA last week pronounced a sentence to two people for actions for sale of the counterfeit equipment Cisco.

Chun-Yu Zhao from Sentrevill (Virginia, the USA) and Donald Kohn (Donald H. Cone) from Frederik (Maryland), as well as in China, charges of "creation of business of large-scale counterfeit sales of the equipment of computer networks under the name Han Tong Technology (Hong Kong) Limited" were brought to members of their families. The company from Virginia JDC Networking Inc is also accused of replacement of marking and sales of the equipment.

"Rao worked in the headquarters of the Chinese company in the USA which was taking part in theft of intellectual property and deception of clients", - the prosecutor of the USA Neil H. McBride said in the statement (Neil H. MacBride).

The website of JDC is still active, advertizes new and second-hand goods from Cisco, Juniper Networks and Extreme Networks. According to data of this resource, the company is founded in 2001 and sells "switches, routers, hubs, servers, cables and accessories" Cisco.

But, according to prosecutors, JDC Networking Inc substituted Cisco products, using the piracy software, created labels and packagings to mislead consumers, instilling in them confidence that the sold products are authentic products of Cisco.

As public prosecutor's workers say, in order to avoid Rao's detection used different names and the addresses in the imported documents, hid millions of dollars which passed through accounts of Internet banks and the real estate issued on members of his family in China.

The judicial jury accused Rao and Kohn of fraudulent conspiring that assumes the maximum punishment - imprisonment for a period of up to five years and a fine of $250 thousand. But Rao is also exposed in "fraudulent import, trade in counterfeit goods and labels, false indications, deception in the fact of naturalization and money muling", the prosecutor's office reported. These charges prescribe the maximum punishment from 10 to 20 years for everyone and also penalties at the rate from $250 thousand to $2 million.

The jury also rendered the verdict requiring to deprive of Rao of numerous assets, "including two Porsches, one Mercedes, seven bank accounts with a remaining balance more than $1.6 million, four houses and three condominiums for the total amount more than $2.6 million"

Rao's activity went wrong way after the customs of the USA and the border service intercepted counterfeit products which went from China to "the addresses related to Rao and JDC Networking Inc".

Cisco is engaged in prosecution of the companies selling counterfeit versions of its products, for example, within so-called development of network raiding (Operation Network Raider), permanent internal and international cooperation too under control of the Ministry of Justice and DHS which interrupts deliveries of the counterfeit network devices manufactured in China.

According to Dave Walters (Dave Walters), the director of global business operations in division of protection of the Cisco brand, last year these actions provided "30 charges of criminal offenses and more than 700 withdrawals of counterfeit products of Cisco for the amount more than $143 million, in retail sale".