Onur Aksoy, the CEO of a group of companies controlling multiple online storefronts, has been sentenced to six and a half years in prison for selling $100 million worth of counterfeit Cisco network equipment to government, health, education, and military organizations worldwide.
Aksoy’s scheme involved importing tens of thousands of modified low-quality networking devices from Hong Kong and Chinese counterfeiters at a fraction of the cost, and then selling them as new and genuine devices on Amazon and eBay. The devices, which had counterfeit Cisco labels and packaging, were sold to customers in the United States and overseas, including hospitals, schools, government agencies, and even the U.S. military.
However, the devices sold by Aksoy’s companies, collectively known as Pro Network Entities, came with performance, functionality, and safety issues, leading to failures and malfunctions that significantly damaged customer operations and networks. Despite receiving seven cease and desist letters from Cisco between 2014 and 2019, Aksoy continued his illegal activities, even providing forged documents to Cisco in response to their warnings.
Aksoy’s illegal activities were eventually uncovered in 2021, when agents executed a search warrant at his warehouse, seizing approximately 1,156 counterfeit Cisco devices with a retail value of over $7 million. He was arrested in Miami on June 29, 2022, and charged with multiple counts of trafficking counterfeit goods and committing mail and wire fraud.
In June 2023, Aksoy pleaded guilty to conducting the massive operation through 19 companies and 25 eBay and Amazon online storefronts. As part of his plea agreement, he will pay Cisco restitution of $100 million and allow the destruction of counterfeit products worth millions of dollars seized from his businesses.
The sentencing of Aksoy to six years and six months in prison serves as a warning to others engaged in similar illegal activities. The case highlights the importance of protecting intellectual property rights and the need for consumers to be aware of the risks of purchasing counterfeit products.
