Phoenix, AZ – Hossam Eldin Hassan, owner and operator of Pacworx, Inc., was sentenced to 36 months of probation and ordered to pay a $1,100 criminal fine after pleading guilty to trafficking in counterfeit goods, a Class C felony. The case, investigated by the Environmental Protection Agency (EPA) and pursued through the Department of Justice, revealed a scheme to illegally export used computer monitors to Egypt by falsifying documentation and utilizing counterfeit trademarks.
Beginning around 2009, Hassan’s company, Pacworx, specialized in acquiring used computer monitors with the intention of re-exporting them. However, Egyptian import regulations prohibit the entry of monitors older than five years. Rather than complying with these laws, Hassan allegedly directed employees to affix fabricated labels to the monitors, attempting to disguise their age and origin. These labels weren’t merely cosmetic changes; they included deliberately falsified serial numbers, manufacturing dates, and—critically—counterfeit logos of prominent monitor manufacturers.
The fraudulent scheme came to light in early 2015 when three shipments originating from Pacworx, destined for Egypt via the Port of Savannah, Georgia, were flagged and seized by U.S. authorities. An inspection revealed hundreds of monitors, many exceeding the five-year age limit, bearing counterfeit marks belonging to Hewlett-Packard (HP), Underwriters Laboratories (UL), Viewsonic Corporation, and Dell, Inc. The counterfeit marks were described as “identical with and substantially indistinguishable from genuine marks,” raising serious concerns about consumer deception and potential damage to the brands’ reputations.
Federal investigators determined that Hassan was directly involved in the creation and application of these false labels. The labels weren’t simply imitations; they contained misspellings and inaccuracies, highlighting the deliberate intent to deceive Egyptian import officials and consumers. The EPA’s Criminal Enforcement Program took the lead on the case, recognizing the environmental and economic harm associated with illegal e-waste exports and the use of counterfeit trademarks.
Legal Ramifications
Hassan was charged with violating Title 18 U.S. Criminal Code § 2320(a)(1), which specifically addresses the trafficking of counterfeit goods. The statute prohibits the intentional transportation of goods bearing counterfeit marks with the knowledge that such acts will induce the sale or distribution of those goods. A conviction under this law carries potential penalties including imprisonment, fines, and forfeiture of assets. While Hassan received a probationary sentence and a fine in this instance, the severity of the offense underscores the federal government’s commitment to combating intellectual property theft and illegal international trade.
Key Facts
- Defendant: Hossam Eldin Hassan
- Company: Pacworx, Inc.
- Location: Phoenix, Arizona
- Years Active: 2009 – 2015 (scheme duration)
- Crime: Trafficking in Counterfeit Goods
- Statute Violated: 18 U.S.C. § 2320(a)(1)
- Counterfeit Marks: HP, UL, Viewsonic, Dell
- Penalty: 36 months probation, $1,100 fine
- Destination Country: Egypt
The case serves as a warning to businesses involved in international trade: circumventing import regulations and utilizing counterfeit trademarks are serious federal offenses with potentially significant consequences. The EPA continues to prioritize investigations into environmental crimes and the protection of intellectual property rights.
Source: EPA ECHO Enforcement Case Database
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