CEO of Dozens of Companies and Entities Charged in Scheme to Traffic an Estimated $1 Billion in Fraudulent and Counterfeit Cisco Networking Equipment

NEWARK, N.J. – A federal grand jury has indicted a Florida man for allegedly orchestrating a scheme over many years to traffic in counterfeit Cisco networking equipment with an estimated retail value of over $1 billion, Attorney for the United States Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite announced today.

Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 38, of Miami, Florida, is charged by indictment, returned July 7, 2022, with one count of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud; three counts of mail fraud; four counts of wire fraud; and three counts of trafficking in counterfeit goods. Aksoy was originally charged by complaint on June 29, 2022, and was arrested in Miami that day. 

According to documents filed in this case and statements made in court:

Aksoy allegedly ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported tens of thousands of fraudulent and counterfeit Cisco networking devices from China and Hong Kong and resold them to customers in the United States and overseas, falsely representing the products as new and genuine. The operation allegedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products, some of which had been sold or discarded, which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. To make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

The fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

As set forth in the indictment, between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy allegedly falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese conspirators. To try to avoid CBP scrutiny, Chinese conspirators allegedly broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used at least two fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy allegedly often continued to order counterfeit Cisco products from the same supplier. 

From 2014 to 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy allegedly responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

The charge of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud carries a maximum potential penalty of five years in prison. The charges of mail and wire fraud each carry a maximum potential penalty of 20 years in prison. The charges of trafficking in counterfeit goods each carry a maximum potential penalty of 10 years in prison. Each charge also carries a maximum potential fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest.

Attorney for the United States Khanna and Assistant Attorney General Polite credited special agents and members of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Los Angeles, under the direction of Acting Special Agent in Charge Eddy Wang; the U.S. Department of Defense, Defense Criminal Investigative Service, Western Field Office, under the direction of Special Agent in Charge Bryan Denny; the General Services Administration, Office of Inspector General, Southeast and Caribbean Division, under the direction of Special Agent in Charge Floyd Martinez; the U.S. Navy, Naval Criminal Investigative Service, Economic Crimes Field Office, under the direction of Special Agent in Charge Peter Tolentino; HSI Miami, under the direction of Special Agent in Charge Anthony Salisbury; HSI Newark, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the indictment.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office, provided valuable assistance.

Anyone who believes they may be a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or https://edit.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark, Senior Counsel Matthew A. Lamberti of the Department of Justice Computer Crime and Intellectual Property Section in Washington, D.C., and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.

The Pro Network Entities include at least the following:

Business Entities

Pro Network Amazon Storefronts

Pro Network eBay Storefronts

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.