Thread: MAN SENTENCED TO 37 MONTHS FOR TRAFFICKING IN COUNTERFEIT AIRBAGS

MAN SENTENCED TO 37 MONTHS FOR TRAFFICKING IN COUNTERFEIT AIRBAGS

— Feb 16, 2012 12:00 AM

CHATTANOOGA, Tenn. — A citizen from the People's Republic of China was sentenced Thursday to more than three years in prison following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Tennessee Department of Transportation and the Tennessee Highway Patrol – Criminal Investigation Division.

Dai Zhensong, 28, was sentenced as a result of an August guilty plea to five counts of intentionally trafficking counterfeit airbags. Chief U.S. District Judge Curtis L. Collier also ordered Zhensong to serve three years supervised release and to pay $210,738 in restitution.

In September 2010, six boxes containing 68 airbags originating from Guangzhou Global Auto Parts International Group Co. LTD (Guangzhou Auto Parts), located in Guangyhon City, People's Republic of China, were intercepted by HSI and determined to be counterfeit items. The counterfeit airbags were delivered to a Chattanooga address by HSI special agents in a controlled delivery.

Zhensong was a partial owner and manager of the international department of Guangzhou Auto Parts, a company that specializes in the production of auto parts, many of which are counterfeit according to information entered at court. He entered the United States in October 2010 and traveled to Chattanooga to sell additional counterfeit airbags and other auto parts. The counterfeit airbags were manufactured by purchasing genuine auto airbags, which were torn down and used to produce molds to manufacture the counterfeit airbags. Trademark emblems were purchased through Honda, Toyota, Audi, BMW and other dealerships located in China and affixed to the counterfeit airbags. The counterfeit airbags were advertised on the Guangzhou Auto Parts website and sold for approximately $57 each, far below the value of an authentic airbag. To date, more than 300 counterfeit airbags originating from Guangzhou Auto Parts have been seized in Chattanooga, with a value of approximately $210,738, which is the agreed amount for restitution.

"This case is an excellent illustration of how the manufacturing, smuggling and selling of counterfeit goods is not a victimless crime," said Raymond R. Parmer, Jr., special agent in charge of HSI New Orleans. "Not only do these products do financial harm to trademark holders, in this instance testing proved that had the counterfeit airbags deployed in an automobile accident, the resulting explosion and shrapnel could have seriously injured or killed occupants of the vehicle. This case represents why HSI remains so committed to an aggressive approach towards enforcing intellectual property rights laws."

U.S. Attorney Bill Killian said, "The United States and its citizens have to remain vigilant about the criminal efforts to undermine our system of patents and trademarks. The sentence imposed in this case will deter others from illegally marketing unsafe and damaged goods in our country."

For more information, visit www.ice.gov.
Man sentenced to 37 months for trafficking in counterfeit airbags — National Intellectual Property Rights Coordination Center

"This case is an excellent illustration of how the manufacturing, smuggling and selling of counterfeit goods is not a victimless crime,"

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Where does GM get their air bags?

http://www.alipac.us/f19/general-mot...-video-265116/

I.C.E. News Release

October 15, 2012
Detroit, MI

HSI arrests 2 in Metro Detroit counterfeit air bag probe

DETROIT – Two metropolitan Detroit residents face criminal charges following their arrests Monday morning by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) special agents during an enforcement action targeting an alleged counterfeit air bag trafficking scheme. The arrests capped a nearly two-year investigation by HSI special agents.

The arrests were announced by U.S. Attorney Barbara L. McQuade, Eastern District of Michigan, and Brian M. Moskowitz, special agent in charge of HSI Detroit.

The suspects Samar Ayoub, 39, of Dearborn Heights, Mich., and Hussein Jomaa, 30, of Dearborn, Mich., who made their initial appearances in federal court Monday afternoon, are charged in a criminal complaint with knowingly trafficking counterfeit merchandise.

According to the complaint, which was unsealed Oct. 15, Jomaa purchased Honda-branded air bags and other Honda trademark-infringing items from Ayoub late last year. Jomaa, the documented general manager of Eagle Auto in northwest Detroit, indicated he purchased the air bags and other counterfeit parts to place in vehicles destined for Africa. Ayoub is alleged to have originally purchased the air bags and other items from a manufacturer in China.

"Drivers or passengers of any car should never have to think twice that their airbags won't work or may actually harm them when they need them most," said Moskowitz. "Detroit introduced the automotive world to the passenger airbag in 1973, and it has saved countless lives over the years. HSI is committed to doing everything we can to keep dangerous counterfeit and substandard safety equipment from entering the marketplace and our cars."

"Counterfeit auto parts like air bags not only violate intellectual property laws, they also create a serious safety risk to consumers." McQuade said.

HSI special agents have seized approximately 73 counterfeit air bags as part of this investigation.

In lab tests conducted on the seized air bags, upon deployment, video shows them propelling projectiles, exploding and/or completely disengaging from the vehicle's mounting devices.

The arrests come after a joint Oct. 10 announcement by ICE and the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) warning consumers of the grave dangers associated with the use of counterfeit air bags.

Trafficking in counterfeit merchandise carries a maximum penalty of up to 10 years in prison.

A complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The National Intellectual Property Rights Coordination Center (IPR Center), which assisted in the investigation, is one of the U.S. government's key weapons in the fight against criminal counterfeiting, piracy and commercial fraud. As a task force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft and commercial fraud. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters. For more information on the IPR Center please visit Our Partner Agencies — National Intellectual Property Rights Coordination Center.

U.S. Immigration and Customs Enforcement (ICE) is the largest investigative arm of the Department of Homeland Security.

ICE is a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities. For more information, visit U.S. Immigration and Customs Enforcement. To report suspicious activity, call 1-866-347-2423 or complete our tip form.

DHS.gov
USA.gov

HSI arrests 2 in Metro Detroit counterfeit air bag probe

I.C.E.News Release

October 22, 2012
Charlotte, NC

North Carolina man pleads guilty to trafficking counterfeit airbags

CHARLOTTE, N.C. – A North Carolina man pleaded guilty Monday in U.S. district court in Charlotte to trafficking in counterfeit airbags, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Transportation (DOT).

Igor Borodin, 27, of Indian Trail, N.C., also pleaded guilty to delivering and causing to be delivered hazardous material, that being airbags, by air commerce in violation of rules and regulations prescribed by the Secretary of Transportation.

A federal criminal indictment dated Aug. 21 charged Borodin with one count of trafficking and attempting to traffic in counterfeit airbags bearing the registered trademarks of automobile manufacturers, and one count of delivering and causing to be delivered hazardous materials (airbags) to air carriers for transportation in air commerce.

The indictment also contained a notice of forfeiture of all of the proceeds of the crime, which includes all of the seized counterfeit airbags, $60,000 in funds seized during the investigation and several pieces of real estate in Charlotte and the state of Washington.
According to information presented at court, Borodin is part-owner of Krugger Auto, located in Charlotte. On Aug. 16, law enforcement special agents with HSI's Charlotte and Chattanooga, Tenn., offices and the DOT Office of Inspector General (OIG) executed federal search warrants at Krugger Auto and Borodin's residence in Indian Trail. Court records show that while executing the search warrants, special agents recovered 99 counterfeit airbags from Borodin's business and 1,514 counterfeit airbags from his residence. Court records also show that Borodin had purchased counterfeit airbags from China, which he then resold through eBay. According to filed documents and court proceedings, the counterfeit airbag shipments ordered by Borodin did not display the legally-required hazardous material warnings when the shipments were transported in air commerce from China to the United States.

DOT has classified airbags as Class 9 dangerous goods, and as such they must be classified, documented, packaged, marked and labeled in accordance with the Hazardous Materials Regulation. The transportation of airbags without legally-required warnings of the hazardous material contained in airbag shipments pose a safety risk to all persons transporting and handling the unmarked hazardous materials.

According to court records, Borodin sold at least 7,000 counterfeit airbags online, and between February 2011 and May 2012 Borodin earned at least $1.4 million in revenue from eBay sales of counterfeit airbags. Independent testing of a counterfeit airbag sold in September 2011 by Borodin through eBay showed that the airbag did not properly inflate.

"My office will not allow fake airbags to endanger the safety of the drivers in our communities," said U.S. Attorney Anne Tompkins in making today's announcement of the guilty plea. "Airbags that do not meet the quality and safety standards of the automobile manufacturers pose a serious threat to human life because they fail to work when they are needed the most, during a car accident. Earlier this month, the National Highway Traffic Safety Administration warned consumers of the serious threat posed by counterfeit airbags, which range from failure to inflate during a front-end collision, to expelling flames and shrapnel toward car occupants upon deployment. With the help of our law enforcement partners, we will continue to go after those who distribute counterfeit airbags in the market."

"Drivers should not have to worry about whether or not their air bags will shoot shrapnel at them in the event of an accident," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "HSI is committed to doing everything we can to keep dangerous and counterfeit substandard safety equipment from entering our marketplace and our cars. We encourage anyone who believes they may have been a victim of this fraud to visit safercar.gov for more information."

"Public safety and consumer protection are among our top investigative priorities. These unscrupulous acts are committed against people who do not even realize the danger they have been put in," said DOT OIG Special Agent in Charge Marlies Gonzalez. "Working with our law enforcement and prosecutorial partners, we will continue to leverage our resources to bring to justice those who violate the law and risk the lives of others."

Borodin entered his plea of guilty before U.S. Magistrate Judge David S. Cayer. Count one (trafficking in counterfeit airbags) carries a maximum term of ten years in prison and a $2 million fine. Count two (delivering hazardous material) carries a maximum prison term of five years in prison and a $250,000 fine.

At today's plea hearing, Judge Cayer also issued a consent order and judgment of forfeiture based on the charges contained in the indictment. Pursuant to the consent order, the court found that, as a result of his criminal conduct, Borodin obtained $1,743,400 in proceeds which he must forfeit. In addition, the court ordered forfeiture of numerous specific properties including Borodin's residence, all of the seized counterfeit airbags and $60,000 in cash seized from his Indian Trail home.

Borodin has been in local federal custody since his arrest August 16, 2012. He will remain in custody until his sentencing hearing, which has not been scheduled yet.


U.S. Immigration and Customs Enforcement (ICE) is the largest investigative arm of the Department of Homeland Security.
ICE is a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities. For more information, visit www.ICE.gov. To report suspicious activity, call 1-866-347-2423 or complete our tip form.

• DHS.gov
• USA.gov

North Carolina man pleads guilty to trafficking counterfeit airbags