Related Federal Cases
- 10 Lbs of Meth & Fentanyl: NY Man Faces Life in MO · Kansas
- NY Dealer Down: 10lbs Meth, 400g Fentanyl · Kansas
- NY Dealer Down: 10lbs Meth, Fentanyl Nabbed · Kansas
- Schweidler Sentenced for $2.25M Steroid Ring · New Hampshire
- Viquesney Pleads Guilty · Illinois
Multi-Million Dollar Software Piracy Scheme Exposed
Three men, including a Kansas City man, a Maryland man, and a Denver man, have been charged in one of the largest software piracy schemes ever prosecuted by the U.S. government. The scheme, which involved co-conspirators in the People’s Republic of China and across the United States, illegally sold millions of dollars of Microsoft Corporation and Adobe Systems, Inc., software product key codes through a charitable organization and several online businesses.
According to court documents, Reza Davachi, 41, of Damascus, was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wednesday, June 17, 2015. The complaint, which was unsealed and made public today following Davachi’s arrest and initial court appearance, charges him with participating in a conspiracy to commit the crimes of wire fraud; unauthorized solicitation of access devices; trafficking in illicit labels, counterfeit labels and counterfeit documentation and packaging; and trafficking in counterfeit goods.
In separate but related cases, Casey Lee Ross, 28, of Kansas City, Mo., and Matthew Lockwood, 37, of Denver, each pleaded guilty to their roles in this same conspiracy on June 11, 2015. Ross admitted that he purchased approximately 30,159 product key codes and counterfeit product key cards from suspect sources in China. Ross purchased these product key codes at prices well below that of the estimated retail price. In many cases, the affidavit says, they were distributed on counterfeit card stock intended to make it appear as if they were genuine Microsoft products.
The investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross had purchased and redistributed tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from suspect sources in China. Microsoft product key codes are used to obtain full access to unlocked, licensed versions of various Microsoft copyrighted software programs.
More than $18 million in assets, including luxury automobiles and expensive real estate, have been seized through federal forfeiture complaints. Those affidavits allege that conspirators reaped about $30 million in profits from customers who paid about $90 million for the pirated software.
Davachi allegedly obtained these products through various sources, including Ross and known counterfeiters in the China. Davachi allegedly sent numerous wire transfers totaling approximately $672,300 to this suspect source of supply in China. The affidavit details communication between Davachi and these known counterfeiters in China where the design and manufacture of these counterfeit product key cares is discussed.
Davachi was arrested last night when he arrived at the airport to board the plane. Davachi remains in federal custody following his initial court appearance earlier today in the U.S. District Court in Baltimore, Md.
RELATED: Bot Bucks: NC Man Confesses to Billion-Stream Royalty Heist
Key Facts
- State: Missouri
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
CybercrimeCybercrimeCybercrimeCybercrime