O.C. Man Sentenced to 2 Years in Prison for Multimillion-Dollar Conspiracy to Smuggle Counterfeit Cell Phone Parts from China | USAO-CDCA

          SANTA ANA, California – An Orange County man was sentenced today to 24 months in federal prison for conspiring to smuggle counterfeit Apple, Samsung, and Motorola cell phone components from China that were then sold to consumers in the United States, a scheme that generated tens of millions of dollars in revenue.

          Chan Hung Le, 46, of Laguna Hills, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay a $250,000 fine.

          Le pleaded guilty in November 2020 to one count of conspiracy to defraud the United States, to intentionally traffic in counterfeit goods, and to illegally bring merchandise into the United States.

          From late 2011 to February 2015, Le conspired with other individuals to import from China cell phone parts and other electronic items bearing counterfeit marks. In furtherance of the conspiracy, Le set up and used mailboxes with virtual office service providers in Oklahoma and Texas using a fictitious business name, JV Trading Solutions. In furtherance of the conspiracy, Le also used the name and identity documents of one of his employees to set up the virtual offices and directed other conspirators to ship trademarked goods under Le’s employees’ or relatives’ names. Once the counterfeit products arrived, Le and his co-conspirators distributed the parts to the public through various online stores.

          “[Le]…orchestrated an elaborate scheme to deceive customs agents by creating covert shipping channels from Hong Kong and China to different U.S. states,” prosecutors wrote in their sentencing memorandum. “From this conduct, and this deception, [Le] generated millions of dollars in profit. [Le] enlisted numerous other parties in his conduct – including his romantic partner, his employees (witting or unwitting), other family members, and the unwitting virtual mailbox service companies. This was a sophisticated, long-standing, and highly profitable offense.”

          In 2016, one of Le’s suppliers, Hongwei “Nick” Du, pleaded guilty in United States District Court in San Diego to conspiring to traffic in counterfeit goods and related money laundering charges. In his plea agreement, Du admitted to selling Le at least $18,744,354 worth of cellular telephone and electronic components for resale from China into the United States and that about half of the goods were counterfeit items bearing the trademarks of Apple, Samsung, Motorola, and other companies. Du was sentenced to three years in federal prison.

          Homeland Security Investigations, United States Customs and Border Protection, and the Westminster Police Department investigated this matter.

          Assistant United States Attorney Cameron L. Schroeder, Chief of the Cyber and Intellectual Property Crimes Section, and Assistant United States Attorneys Lauren E. Restrepo and Victoria A. Degtyareva, also of the Cyber and Intellectual Property Crimes Section, prosecuted his case.

Source link

Author: Editor
The website is owned by STL.News, LLC. However, the website is hosted, designed, and maintained by WebTech Group, a web host, and design agency based in St. Louis, Missouri. USDOJ.Today focuses on aggregating content from the US Attorney's Offices around the country. STL.News uses this content to publish national news at https://STL.News