Counterfeit Car Diagnostic Scam Exposed
A Virginia man admitted to selling counterfeit General Motors (GM) automotive diagnostic devices to unsuspecting mechanics and vehicle owners, putting the safety of motor vehicles at risk. Justin DeMatteo, 31, of Saxe, Va. pleaded guilty to one count of trafficking in goods bearing counterfeit marks in U.S. District Court in the Eastern District of Virginia.
DeMatteo sold fake GM Corporation-branded ‘Tech 2’ vehicle diagnostic systems on eBay between January and May 2011. These diagnostic systems were used to diagnose problems in vehicles that use electronic controls and interfaces. The counterfeit units were purchased from unauthorized manufacturers in China and often drop-shipped directly to U.S. customers.
According to court documents, DeMatteo offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. He accepted payment via PayPal and sold nearly 100 counterfeit units, with a retail price of over $380,000 if authentic. This scheme came to an end when federal agents executed search warrants at DeMatteo’s residence and business on December 15, 2011, seizing numerous counterfeit units and computer equipment.
As part of his plea agreement, DeMatteo agreed to pay restitution of $328,500, which is the full amount of GM’s losses, and forfeit $109,074 and all facilitating property and contraband seized during the searches. Sentencing is scheduled for January 11, 2013.
The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section, with assistance from the FBI’s Intellectual Property Rights Unit. This case highlights the dangers of counterfeit goods and the importance of protecting intellectual property.
The sale of counterfeit diagnostic equipment not only puts vehicle safety at risk but also undermines the integrity of the automotive industry. It is essential for law enforcement and regulatory agencies to crack down on such activities and bring perpetrators to justice.
As the investigation into DeMatteo’s activities continues, it is clear that his actions have far-reaching consequences for the automotive industry and the public at large. This case serves as a reminder of the importance of vigilance and the need for robust measures to prevent the sale of counterfeit goods.
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