Lynnwood Tech Boss Gets 37 Months for Counterfeit Cisco Scheme

SEATTLE, WA – The digital underworld has claimed another victim, and this time it’s a Washington state tech company peddling cheap knockoffs. DANIEL OBERHOLTZER, owner of Lynnwood’s CONNECTZONE.COM, LLC, will spend the next 37 months in federal prison after being sentenced today in U.S. District Court for conspiracy to traffic in counterfeit goods. The company itself received five years of organizational probation. The feds didn’t just stop at jail time – they’re seizing a hefty $716,778.55 in illicit profits.

The scheme, exposed by Homeland Security Investigations (HSI), centered around CONNECTZONE.COM’s online sales of computer networking products falsely advertised as genuine Cisco equipment. Instead of legitimate goods, OBERHOLTZER sourced his inventory from overseas, specifically from SHENZHEN XIEWEI ELECTRONIC, LTD, a Chinese firm based in Shanghai, and its representative, MAO MANG, aka “BOB MAO.” This wasn’t a new hustle either – evidence suggests the operation dates back to 1997, when the company operated under the name Electro Products, Incorporated, consistently importing and distributing counterfeit tech from China.

According to court documents, OBERHOLTZER, along with co-conspirators LANCE WILDER and EDWARD VALES, actively guided the Chinese manufacturers on how to mimic Cisco’s trademarks. They even attempted to bypass U.S. Customs by labeling shipments as “samples.” The result? Inferior, potentially dangerous products sold to unsuspecting customers at a discounted price. Judge Richard A. Jones didn’t hold back during sentencing, stating OBERHOLTZER’s actions were “aggravated” by the unknown risks posed by the faulty counterfeit goods. He made it clear: the 37-month sentence was meant to be a warning to others contemplating similar schemes.

U.S. Attorney Jenny A. Durkan minced no words, declaring, “Innovation and our economy demand that the intellectual property of businesses be protected. Here, the defendants used the hard-earned brands of others and slapped it on inferior products.” Brad Bench, special agent in charge of HSI Seattle, echoed this sentiment, highlighting the economic impact of counterfeiting: “Their illicit activities ultimately come at the expense of trademark owners and consumers. They don’t contribute to research and development and the knockoffs they sell generally don’t match the quality and safety of genuine items.”

This case isn’t limited to OBERHOLTZER and CONNECTZONE.COM. Four individuals and two companies were initially indicted in January 2013. EDWARD VALES already received two years of probation and five months of home confinement for one count of Mail Fraud on June 13, 2014. LANCE WILDER, convicted of conspiracy to traffic in counterfeit goods, two counts of mail fraud, and four counts of trafficking in counterfeit goods following a jury trial on April 7, 2014, is scheduled for sentencing on July 25, 2014. The investigation, conducted by the Seattle-Tacoma Border Enforcement Security Task Force (BEST), involved a multi-agency collaboration including U.S. Customs and Border Protection, the U.S. Secret Service, and the U.S. Coast Guard.

The seizure of $716,778.55 and OBERHOLTZER’s 37-month prison sentence, coupled with the ongoing cases against WILDER and others, send a clear message: the feds are cracking down on the lucrative world of counterfeit goods. The case highlights a persistent threat to legitimate businesses and consumer safety, fueled by international networks willing to profit from deception. This isn’t just about fake products; it’s about undermining innovation and eroding trust in the marketplace.