Skip to main content

Virginia woman sentenced to 5 years in prison for importing and selling counterfeit Cisco computer equipment

WASHINGTON — A Virginia woman was sentenced today to 60 months in prison for leading a sophisticated conspiracy to import and to sell counterfeit Cisco-branded computer networking equipment, laundering criminal proceeds and obtaining her citizenship through fraud. This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

At sentencing, U.S. District Court Judge Gerald Bruce Lee also ordered Chun-Yu Zhao, 43, of Chantilly, Va., to pay $2,709,238 in restitution and to pay a $17,500 fine. Zhao was also ordered to serve three years of supervised release following her prison term.

In addition, Judge Lee stripped Zhao of her U.S. citizenship and ordered that the following assets be forfeited to the United States: four homes in Maryland and northern Virginia and three condominiums in Chantilly with a total value of more than $2.6 million; a Porsche Boxster, Porsche Cayenne and Mercedes sedan; and seven bank accounts containing more than $1.6 million. Zhao has been in federal custody since her July 22, 2010, arrest by HSI special agents.

In May 2011, following a three-week trial, a federal jury convicted Zhao of 16 felony counts, including conspiracy to commit importation fraud and to deal in counterfeit goods, importation fraud, dealing in counterfeit goods, obtaining citizenship by fraud, making false statements to law enforcement and money laundering. According to court documents, Zhao and her family members and other co-conspirators in China agreed to lie on declaration forms and to sell shipments of counterfeit Cisco-branded computer networking equipment.

Zhao and her co-conspirators used counterfeit labels and packaging to mislead consumers into believing that they were purchasing genuine Cisco products. To evade detection, Zhao and her co-conspirators used various names and addresses in importation documents and hid millions of dollars of counterfeiting proceeds through a web of bank accounts and real estate held in the names of Zhao's family members. Zhao also fraudulently obtained U.S. citizenship based on lies on her citizenship application.

The case was investigated by HSI, as well as the General Services Administration, Office of the Inspector General. U.S. Customs and Border Protection made a criminal referral to HSI after intercepting counterfeit products from China destined for addresses associated with Zhao, her business and her family.

Comments

Popular posts from this blog

15 Gang Members Convicted on Conspiracy, Weapons Possession, Firearms Trafficking Charges Case Follows Recent Convictions of 137th Street Crew and East Harlem Narcotics Trafficking Organization

Manhattan District Attorney Cyrus R. Vance, Jr., announced the results of the investigation and prosecution of one of Central Harlem’s most destructive criminal street gangs, referred to as “ONE TWENTY-NINE” or “GOODFELLAS/THE NEW DONS,” which terrorized the neighborhood surrounding West 129th Street between Lenox and Fifth Avenues. Thirteen members of the gang have previously pleaded guilty to importing, possessing, and using firearms over the course of the conspiracy.

Mortgage Fraud

Manhattan District Attorney Robert M. Morgenthau announced today the indictment of 13 individuals and a mortgage origination company for perpetrating over $100 million in mortgage fraud over a four-year period in the New York City metropolitan area. In addition, 12 individuals have already waived indictment and pleaded guilty to felonies relating to their participation in the mortgage fraud scheme. The indictment charges 13 individuals and the mortgage company, AFG FINANCIAL GROUP, INC., with enterprise corruption, grand larceny, scheme to defraud and conspiracy involving 19 fraudulent mortgage transactions. The defendants include the principals and a number of employees of the mortgage company, as well as bank employees, appraisers, and three attorneys. Two other attorneys are among the defendants who already pleaded guilty. The crimes charged in the indictment occurred between June 2004 and April 2009 with the bulk of the fraudulent closings occurring from mid-2005 through the end of...

DISTRICT ATTORNEY VANCE ANNOUNCES INDICTMENT OF SIX SUBCONTRACTING COMPANIES AND THEIR OWNERS IN MULTIMILLION-DOLLAR FRAUD

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the indictments of six subcontracting companies and their owners for colluding with LEHR CONSTRUCTION CORPORATION (LEHR) in a multimillion dollar scheme that defrauded numerous construction clients over the past decade. See, related story. The announcement comes one day after DA Vance announced LEHR and four executives were indicted on crimes including Enterprise Corruption, the New York State Racketeering law. GODSELL CONSTRUCTION CORPORATION and its owner ARTHUR GODSELL are charged with Grand Larceny in the Second Degree. JT ROSELLE LIGHTING, INC. and its owner JAMES ROSELLE, LIBERTY CONTRACTING CORPORATION and its owners GEORGE FOTIADIS and KEVIN FOTIADIS, PJ MECHANICAL and its owner JAMES PAPPAS, SUPERIOR ACOUSTICS, INC. and its owner KENNETH MCGUIGAN, and SWEENEY & HARKIN CARPENTRY and its owner MICHAEL HAYES are charged with Grand Larceny in the Third Degree.[1] "The defendants in this case cheated clie...