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Charles Ndhlovu, Counterfeit DVD and CD Trafficking, Georgia 2011

WASHINGTON – In a major blow to the counterfeiting underworld, a federal jury in the Northern District of Georgia has convicted Charles Ndhlovu of participating in a counterfeit DVD and CD ring, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Sally Quillian Yates for the Northern District of Georgia.

Ndhlovu, a key player in the operation, was convicted of one count of trafficking in counterfeit labels and three counts of criminal copyright infringement. The evidence presented at trial established that Ndhlovu and his co-defendants rented space at a warehouse on Metropolitan Parkway in Atlanta, where they ‘burned,’ or copied DVDs and CDs, and produced counterfeit labels and packaging.

According to the evidence, Ndhlovu purchased labels and blank digital media for use in manufacturing the infringing DVD and CD copies of copyrighted material and distributing them to retail outlets. The entire criminal enterprise was responsible for the distribution of illegal products that, if legitimate, would have been valued at more than $12 million.

The charges each carry a maximum sentence of five years in prison. In addition, the defendant faces a fine of up to $250,000 on each count. A sentencing hearing has not yet been scheduled.

The case was prosecuted by Assistant U.S. Attorney Brian Pearce in the Northern District of Georgia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The case was investigated by the FBI and U.S. Immigration and Customs Enforcement of the Department of Homeland Security, together with the Atlanta Police Department Organized Crime Unit, Fulton County Sheriff’s Office, College Park Police Department, and East Point Police Department, with assistance from the Recording Industry Association of America.

The jury returned its verdict after three days of trial and six hours of deliberation. Ndhlovu’s conviction is a significant victory for law enforcement and a major step in disrupting the counterfeiting trade.

Defendant/Respondent: Charles Ndhlovu

Criminal Charges: One count of trafficking in counterfeit labels, three counts of criminal copyright infringement

City and State: Atlanta, Georgia

Date: 2011 (trial date not specified)

Sentence/Outcome: Convicted, maximum sentence of five years in prison, fine of up to $250,000 on each count

Dollar Amounts: $12 million (estimated value of counterfeit products)

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