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Sherrie Householder Pleads Guilty to $80 Million Counterfeit Cell Phone Parts Scheme
Sherrie Householder, 59, of Nixa, Missouri, pleaded guilty in federal court to selling more than $80 million worth of counterfeit cell phone components over the Internet and at a Springfield, Missouri, store.
Householder waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of mail fraud, one count of money laundering and one count of tax evasion.
According to the investigation, Householder managed and operated Flash Technology, LLC, also known as Flash Tech, a business that sold cell phone components over the Internet and at a Springfield store. Householder represented that the cell phone components were manufactured by legitimate companies, including Apple, Samsung, LG, Microsoft, Android, Dell, Blackberry, ASUS, Acer, Kindle, HTC, Motorola, Nokia, Sony, ZTE and others.
However, the components were actually counterfeit, and Householder used the trademarks and logos of these companies on her Web sites. Nearly 5,000 international shipments were sent to Flash Tech from China, and federal agents from Homeland Security Investigations (HSI) and Customs and Border Protection conducted numerous border inspections of these shipments. All of the items shipped from China were determined to be counterfeit.
Householder admitted that she received more than $80 million from the sale of counterfeit items over approximately three years, from December 3, 2012, to January 14, 2016. She also failed to pay any taxes between 2013 and 2015 on her total salary of $642,109, and as a result, she owes $151,838 in back taxes. In addition to the federal income taxes owed, Householder also owes the Missouri Department of Revenue $32,743 for her failure to pay state income taxes for 2013 through 2015.
On February 2, 2016, search warrants were simultaneously executed at Householder’s Nixa residence and at the Flash Tech store in Springfield. At each location, thousands of cell phones, electronics and component parts were seized. After seizing these items, agents and company experts determined that all of the items were counterfeit. The total amount of items seized was worth approximately $5.5 million and filled two large moving trucks.
Householder must face the consequences of her actions, and we hope that justice will be served in this case.
Mandatory Facts:
Defendant: Sherrie Householder
Criminal Charges: One count of mail fraud, one count of money laundering and one count of tax evasion
City and State: Nixa, Missouri
Date: December 3, 2012, to January 14, 2016
Sentence: Currently pending
Dollar Amounts: $80 million (approximate value of counterfeit cell phone components sold), $151,838 (back taxes owed), $32,743 (state income taxes owed)
Key Facts
- State: Missouri
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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