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Man Gets 30 Months for Importing Counterfeit Cisco Networking Equip

On August 18, 2011, the Justice Department announced that Donald Cone of Maryland has been sentenced to 30 months in prison for his role in a sophisticated conspiracy to import and sell counterfeit Cisco-branded computer networking equipment.

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Man & Co-Conspirator Operated Counterfeit Computer Equip Business in HK

Cone and a co-conspirator, Chun-Yu Zhao of Virginia were convicted in May 2011. According to the evidence introduced at trial, Zhao, Cone and Zhao’s family members in China operated a large-scale counterfeit computer networking equipment business under the names of JDC Networking Inc. and Han Tong Technology (Hong Kong) Limited.

Used Pirated Software to Alter Cisco Products, Various Names on Import Docs

JDC Networking Inc., located in Virginia, altered Cisco products by using pirated software, and created labels and packaging in order to mislead consumers into believing the products it sold were genuine Cisco products. To evade detection, Zhao used various names and addresses in importation documents, and hid millions of dollars of counterfeit proceeds through a web of bank accounts and real estate held in the names of family members in China.

Sentenced to 30 Months in Prison, Ordered to Pay $143K in Restitution

Cone was ordered to pay $143,300 in restitution and to serve three years of supervised release following his prison term. Zhao will be sentenced on September 9, 2011.

(See ITT's Online Archives or 05/27/11 news, 11052722, for BP summary of Cone and Zhao's conviction.)