From <a href="https://www.zerohedge.com/"Zero Hedge
Florida Man Charged In $1 Billion Fraud Scheme Of Counterfeit Cisco Devices
A federal grand jury indicted a Florida man for trafficking over $1 billion in counterfeit Cisco networking equipment on Amazon and eBay stores between 2014 and 2022.
According to the Department of Justice (DoJ), Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 38, of Miami, operated at least 19 companies formed in New Jersey and Florida that sold counterfeit Cisco networking equipment through 15 Amazon storefronts and ten eBay storefronts and multiple other entities (collectively, the “Pro Network Entities”).
Attorney for the US Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite said Aksoy’s scheme worked by importing network devices from China and Hong Kong that were older models but modified to appear to be authentic versions of new, enhanced, and more expensive ones.
“The fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military,” the DoJ wrote in a media release Friday morning.
Aksoy generated over $100 million in revenue after selling more than $1 billion in fake networking equipment. The government alleges the Florida man “received millions of dollars for his personal gain” from the scheme.
DOJ has charged Aksoy with conspiracy to traffic counterfeit goods and mail and wire fraud, and both carry hefty sentencing times and fines.
This indictment sheds light on an entire underground economy devoted to scamming consumers on Amazon and eBay. Terrifyingly, the counterfeit Cisco networking equipment could’ve been installed in critical systems for companies and or even government agencies, making them more vulnerable to a ransomware attack or unexpected performance issues.