Miami-based technology CEO Onur Aksoy (also known as Ron Aksoy and Dave Darden) was sentenced to more than six years in prison for running a large-scale operation selling counterfeit Cisco equipment. It was.
Aksoy pleaded guilty in June 2023 to charges including conspiracy, mail fraud, and wire fraud. He resold counterfeit Cisco products with an estimated retail value of over $1 billion through his 19 companies and online stores from 2013 until 2022. These organizations, known collectively as Pro Network Entities, sold fake network products on Amazon and eBay.
As part of the plea agreement, Aksoy is required to pay $100 million in restitution to Cisco and other victims.
Counterfeit equipment was sold to both government and private companies
Counterfeit devices have penetrated critical infrastructure, harming both the private and public sectors. This included classified U.S. government systems used by the Navy, Air Force, and Army. Counterfeit parts jeopardized the operation of fighter jets, bombers, helicopters, and maritime patrol aircraft.
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Furthermore, schools and hospitals were also unwittingly affected by shoddy equipment that often malfunctioned or completely failed after installation.
Authorities have been aware of the fraud for years.
Aksoy's fraud was discovered by US authorities and Cisco as early as 2014, counterfeit products were seized and Aksoy was ordered to cease operations. However, he continued this plan with the help of Chinese suppliers. These suppliers modify used or discarded Cisco products to appear genuine and install pirated software.
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U.S. Attorney Vikas Khanna emphasized the scale of the operation and the potential harm. He said the ruling would hold Aksoy accountable for the “breathtaking scale” of the counterfeiting scheme.
Cisco has faced challenges in recent years due to supply chain disruptions, which are said to have made it vulnerable to counterfeit activity.
