LYNNWOOD, WA – A Lynnwood electronics company, its owner, and two executives are facing federal charges after allegedly running a decade-spanning operation to flood the market with counterfeit computer networking equipment. The U.S. Attorney’s Office in Seattle announced today an indictment against CONNECTZONE.COM LLC, its principals, and a Chinese supplier, accusing them of conspiracy to traffic in counterfeit goods.
The scheme, according to the indictment, dates back to 1997 when the company operated as Electro Products, Incorporated. CONNECTZONE.COM LLC allegedly sourced its fake gear from XIEWEI ELECTRONICS, a Shanghai-based firm, and its representative, MAO MANG, also known as “BOB MAO.” Prosecutors claim the defendants actively collaborated with the Chinese company to manufacture products mimicking those of legitimate U.S. tech giant Cisco, then sold them at significantly discounted prices.
“Protecting the intellectual property of American companies is critical to job growth and economic recovery – especially in our high tech industries,” stated U.S. Attorney Jenny A. Durkan. The indictment details how DANIEL OBERHOLTZER, 50, of Lynnwood, the company owner, WARREN LANCE WILDER, 46, of Auburn, the sales manager, and EDWARD VALES, 31, of Seattle, the production manager, allegedly advised XIEWEI ELECTRONICS on how to create convincing fakes. They even allegedly instructed the Chinese firm to label shipments as “samples” in an attempt to evade U.S. Customs scrutiny.
Federal investigators say the operation wasn’t just about cheap knockoffs; it was a deliberate attempt to deceive consumers. The defendants allegedly advertised the counterfeit goods as genuine Cisco equipment, pocketing the difference. Emails exchanged between the conspirators, detailed in the indictment, reportedly outline the mechanics of the scheme. The indictment includes charges of conspiracy to traffic in counterfeit goods, two counts of mail fraud, and four counts of trafficking in counterfeit goods.
“Counterfeiting high dollar goods can be very lucrative for enterprising criminals,” said Brad Bench, special agent in charge of HSI Seattle. “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.” The three U.S.-based defendants are scheduled to appear in court tomorrow, January 18, 2013. SHENZHEN XIEWEI ELECTRONIC LTD and MAO MANG are also named in the indictment.
If convicted, the defendants face stiff penalties. Conspiracy to traffic in counterfeit goods carries a maximum sentence of ten years in prison and a $2 million fine. Mail fraud is punishable by up to 20 years behind bars, and trafficking in counterfeit goods can result in a ten-year prison term. It’s important to remember these are allegations, and each defendant is presumed innocent until proven guilty. The investigation was led by the Seattle-Tacoma Border Enforcement Security Task Force (BEST), a multi-agency coalition including ICE’s Homeland Security Investigation (HSI), the Seattle Police Department, the Port of Seattle Police Department, and U.S. Customs and Border Protection. Assistant United States Attorney Norman Barbosa is prosecuting the case.
Related Federal Cases
- Google Cornered: AG James Nails Tech Giant in Ad Monopoly Case · New Hampshire
- Lynnwood Couple Scammed Needy, Hit With Prison · New York
- NASA Analyst Peddled Fake Hugo Boss, Lands Home Confinement · Maryland
- Spokane Claims Tech Ackerman Faces Federal Tax Evasion · Washington
- Flooring Firm Bookkeeper Sentenced to 3 Years for $400K Embezzlement Scheme · Washington
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime