Tech CEO Sentenced to 6 Years for Selling Counterfeit Cisco Gear on Amazon and eBay

Onur Aksoy, a Miami-based CEO, has been sentenced to over six years in prison for his involvement in selling counterfeit Cisco equipment to multiple buyers on Amazon and eBay. The shoddy hardware sold by Aksoy ended up in sensitive US government systems, highlighting the severity of the crime.Aksoy, aged 40, was sentenced to six years and six months in prison for his role in the counterfeit sales, which generated at least $100 million in revenue.

This significant sentence underscores the seriousness of the offense and serves as a deterrent against engaging in fraudulent activities that pose a threat to national security and consumer safety.Onur Aksoy's fraudulent activities spanned from at least 2013 to 2022, the year of his arrest. During this time, he purchased counterfeit Cisco equipment from suppliers in China and resold them as authentic Cisco products, amassing an estimated retail value exceeding $1 billion.

Nicole Argentieri, Principal Deputy Assistant Attorney General, condemned Aksoy's actions, highlighting the significant impact of his crimes. The counterfeit computer networking equipment sold by Aksoy found its way into various critical sectors, including US hospitals, schools, and highly sensitive military and governmental systems. This included platforms supporting sophisticated US fighter jets and military aircraft, posing serious risks to national security and public safety.The fraudulent scheme orchestrated by Onur Aksoy persisted for nearly a decade, involving the sale of counterfeit gear through 19 companies, as well as 15 Amazon storefronts and at least 10 eBay storefronts, according to the Justice Department.

Despite the extensive scope of the operation, the counterfeit hardware consistently underperformed once installed.Investigators noted that the fake products would often fail or malfunction, resulting in significant damage to the networks and operations of their users. In some instances, the consequences were severe, costing users tens of thousands of dollars in damages. This highlights the detrimental impact of Aksoy's illicit activities, which not only deceived buyers but also jeopardized the integrity and reliability of critical systems across various sectors.

The creation of the counterfeits involved a process where Chinese suppliers would often take older, lower-model products, some of which may have been previously discarded. These products were then modified to give the appearance of being new, while pirated Cisco software was loaded onto the hardware.This deceptive practice allowed the counterfeiters to present the products as authentic Cisco equipment, despite their inferior quality and fraudulent origins. By repurposing older and discarded hardware and using unauthorized software, the counterfeiters aimed to maximize their profits while deceiving unsuspecting buyers into believing they were purchasing genuine Cisco products.The counterfeit equipment was convincing enough to deceive government buyers, with some of the fake products being utilized in classified information systems.

According to federal investigators, the counterfeit devices were identified in both combat and non-combat operations of the US Navy, US Air Force, and US Army.These counterfeit products were found on platforms supporting various critical military assets, including the F-15, F-18, and F-22 fighter jets, AH-64 Apache attack helicopter, P-8 maritime patrol aircraft, and B-52 Stratofortress bomber aircraft. The presence of counterfeit equipment in such high-stakes and sensitive environments underscores the seriousness of the situation and the potential risks posed by the infiltration of fraudulent hardware into military systems.

US authorities and Cisco initiated efforts to crack down on Aksoy as early as 2014, seizing counterfeit shipments and issuing orders for him to cease his fraudulent activities. However, Aksoy managed to evade scrutiny by collaborating with his Chinese suppliers to smuggle the counterfeit goods into the US.Despite these initial interventions, Aksoy's illicit operations continued until his arrest in 2022. Following his arrest, Aksoy pleaded guilty to charges related to the fraud scheme a year later. As part of his plea agreement, Aksoy has agreed to pay restitution totaling $100 million to Cisco and his other victims for perpetrating the fraud.

This significant restitution payment serves as a form of accountability for Aksoy's actions and aims to compensate the victims for the damages incurred as a result of his fraudulent activities. It also underscores the severity of the offense and the commitment of law enforcement and corporate entities to combatting counterfeit operations and protecting consumers and businesses from financial harm.