Counterfeit Cisco Scheme Impacts U.S. Military and Government Systems

NEWARK, NEW JERSEY - A Florida resident and dual citizen of the United States and Turkey, Onur Aksoy, 40, has been sentenced to 78 months in prison for orchestrating a large-scale operation trafficking in fraudulent and counterfeit Cisco networking equipment. This sentence was handed down by Judge Sheridan in the Trenton federal court on May 1, 2024.

“Aksoy sold hundreds of millions of dollars’ worth of counterfeit computer networking equipment that ended up in U.S. hospitals, schools, and highly sensitive military and other governmental systems, including platforms supporting sophisticated U.S. fighter jets and military aircraft,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.

Aksoy, who operated under the aliases “Ron Aksoy” and “Dave Durden,” pleaded guilty to charges including conspiracy to traffic in counterfeit goods and to commit mail and wire fraud. Over several years, Aksoy managed at least 19 companies and around 25 online storefronts through which he imported and sold tens of thousands of modified and low-quality computer networking devices. These devices bore counterfeit Cisco trademarks, misleading consumers about their authenticity and quality.

The operation, which garnered over $100 million in revenue, involved importing older, often discarded networking equipment from suppliers in China and Hong Kong. These were then altered to mimic new, high-end Cisco products, complete with pirated software and substandard components. The counterfeit products not only performed poorly but also posed significant risks to users, including hospitals, schools, and government agencies.

Significantly, the counterfeit devices infiltrated sensitive U.S. military and governmental systems, affecting platforms like the F-15 and F-18 fighter jets, and the B-52 bomber, potentially compromising national security and operational safety.

“Through an elaborate, years-long scheme, Aksoy created and ran one of the largest counterfeit-trafficking operations ever,” Attorney for the United States Khanna said. “His operation introduced tens of thousands of counterfeit and low-quality devices trafficked from China into the U.S. supply chain, jeopardizing both private-sector and public-sector users, including highly sensitive U.S. military applications like the support platforms of U.S. fighter jets and other military aircraft."

Customs and Border Protection intercepted around 180 shipments linked to Aksoy’s companies between 2014 and 2022, despite his attempts to evade detection by using aliases and fake addresses. In response to cease-and-desist efforts by Cisco, Aksoy provided forged documents through his attorney.

In addition to his prison term, Judge Sheridan imposed a three-year supervised release and a $40,000 fine on Aksoy. He also agreed to pay $100 million in restitution to Cisco, with additional compensation to other victims to be determined.

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