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Counterfeit Mercedes-Benz Diagnostic Equipment Scandal Rocks LA
A North Carolina man and his company have been found guilty of creating and selling fake Mercedes-Benz diagnostic equipment, a scam that netted them thousands of dollars in profit.
Robert Beckmann, 52, of Durham, North Carolina, pleaded guilty to criminal infringement of a copyright, a misdemeanor, and his company, Beckmann Technologies, Inc., pleaded guilty to creating and selling non-authentic Mercedes-Benz diagnostic equipment.
The scam, which lasted from 2001 to 2012, involved Beckmann Technologies, Inc. working with other companies and individuals to produce and sell unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software.
The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems. Beckmann Technologies, Inc. was responsible for creating hardware for the fake SDS units, including a “black box,” while another company obtained, modified, and duplicated the authentic SDS software without Mercedes-Benz’s authorization or license.
Representatives of Beckmann Technologies, Inc. and other companies discussed a plan to have the individual in the United Kingdom, J.C., “go underground and off the radar” and continue working on making fake SDS after learning that Mercedes-Benz had notified J.C. that his conduct was in violation of civil and/or criminal laws.
The “real” SDS sold for between $8,300 and $22,000 each, while the fake SDS sold for up to $11,000, depending on market factors. In total, Company A and Company B sold at least 795 fake SDS.
Beckmann faces a maximum term of imprisonment of one (1) year and a $100,000 fine. Beckmann Technologies, Inc. faces a maximum fine of $500,000. Sentencing before Judge Kurt D. Engelhardt has been scheduled for December 10, 2014, at 9:00 a.m.
This case was investigated by agents from the Federal Bureau of Investigation, and the prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg and Computer Crime and Intellectual Property Section (CCIPS) Senior Counsel Evan Williams.
RELATED: California Man Guilty of Mail Fraud
RELATED: Fake Mercedes-Benz Diagnostic Devices Sold by California Man
Key Facts
- State: Louisiana
- Category: Cybercrime|White Collar Crime|Organized Crime
- Source: DOJ Press Release ↗
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