CEO Arrested for Selling $1 Billion Counterfeit Cisco Hardware on Amazon, eBay
A Miami-based CEO has been arrested for allegedly importing $1 billion worth of counterfeit Cisco equipment from China and then selling it on Amazon and eBay.
Ministry of Justice announced(Opens in a new window) today that they have charged 38 year old Onur “Ron” Aksoy for selling counterfeit Cisco equipment through various online storefronts.
Allegedly, Aksoy imported tens of thousands of counterfeit Cisco devices from China and Hong Kong. He then created at least 19 companies in New Jersey and Florida, dubbed the “Pro Network,” to help him resell hardware as genuine through e-commerce sites.
One of the sites that Aksoy appears to be using to sell Cisco gear.
“The operation allegedly generated more than $100 million in revenue, and Aksoy received millions of dollars for his personal gain,” the Justice Department said.
The Cisco equipment that Aksoy allegedly sold was usually older, lower-end models that were previously purchased or discarded. Counterfeiters in China then modify the equipment, making the devices look like newer or more expensive models of Cisco products.
“As alleged, Chinese counterfeiters frequently add pirated Cisco software and components that are unauthorized, low-quality, or unreliable—including components to circumvent the technological steps Cisco adds to software to check software license compliance and to authenticate the hardware,” Judge said the department. In addition, counterfeit products are packaged with labels, boxes, and documentation that appear to be genuine.
However, the customer who purchased the equipment would later realize that the product was defective. “Often, they will simply fail or malfunction, causing significant damage to their network and user operations—in some cases, costing users tens of thousands of dollars,” the Justice Department said. “Customers of Aksoy’s counterfeit and counterfeit devices include hospitals, schools, government agencies and the military.”
According to the US criminal complaint(Opens in a new window)Aksoy started at least in 2013. He can buy counterfeit equipment at prices “95 to 98%” lower than the price of genuine Cisco products.
The counterfeit led to many complaints from buyers on Amazon and eBay. In response, Amazon and eBay were suspended(Opens in a new window) or stop the storefront on their site. But Aksoy has repeatedly returned to the e-commerce platform, creating new storefronts with different names between 2014 and 2020.
Cisco is also aware of a bogus scheme afoot. From 2014 to 2019, the company sent Aksoy seven termination and termination letters, demanding that he put an end to the fraudulent fraud.
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At the same time, US Customs and Border Protection seized about 180 shipments that Chinese counterfeiters had tried to send to Aksoy over the past nine years. In July 2021, US agents also executed search warrants and raided a warehouse operated by Aksoy, seizing 1,156 counterfeit Cisco devices with a retail value of more than $7 million.
To avoid investigation, Aksoy sometimes uses the alias Dave Durden. But last week, federal investigators arrested Aksoy in Miami on multiple fraud-related charges. As evidence, the criminal charges against him cite numerous emails and messages that Aksoy and his colleagues sent to fake suppliers in China.
Department of Justice Catalog(Opens in a new window) various storefronts that Aksoy uses on Amazon, eBay, and on his own website to sell goods. But at this time, it is still unclear whether the victim will receive restitution. The company Aksoy Pro Network did not immediately respond to a request for comment.
In a statement, Cisco said: “We are committed to maintaining the integrity and quality of Cisco products and services. Cisco thanks law enforcement and customs officials for their outstanding collaboration in this investigation and to the DOJ for bringing the perpetrators to justice.”
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