Martin Vellozzi, Mail Fraud, California 2012

California Man Charged with Selling Fake Mercedes-Benz Diagnostic Devices

MARTIN VELLOZZI, age 56, of Rancho Palos Verdes, California, has been charged with mail fraud for creating and selling non-authentic Mercedes-Benz diagnostic equipment, announced United States Attorney Dana J. Boente.

Between about 2005 and July 2012, VELLOZZI, who owned LMV Industries, produced and sold unauthorized and non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software.

The SDS devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems. By selling non-authentic, unauthorized SDS that bore Mercedes-Benz logos and trademarks, VELLOZZI represented that the SDS he was selling were authentic and authorized by Daimler AG, when, in fact, they were not.

The “real” SDS sold for between $8,300 and $22,000 each; VELLOZZI sold the non-authentic SDS for approximately $6,000. The fake devices VELLOZZI sold were manufactured by companies located in Durham, North Carolina, and Harahan, Louisiana.

On some occasions, when one of the fake SDS units VELLOZZI sold would break, the Harahan-based company would provide fixes or “patches” directly to the customer. Additionally, VELLOZZI used cracking software, called “keygens” to “unlock” SDS software and make it work on his unauthorized SDS.

If convicted, VELLOZZI faces a maximum term of imprisonment of twenty (20) years, followed by up to three (3) years of supervised release, and a $250,000 fine.

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