BITE Identifies Transactions Involving Counterfeit Items Used in National Defense and Aviation Entering the US Supply Chain

Intellectual Property Rights Government Enforcement

In June of 2023, the United States Department of Justice announced the guilty plea (DOJ Press Release) of a Miami man who operated almost 20 companies in New Jersey and Florida, as well as multiple Amazon and eBay storefronts. These companies and the associated storefronts operated under the name PRO NETWORK ENTITIES. PRO NETWORK ENTITIES illegally imported counterfeit computer networking devices labeled with fake Cisco labels, packaging, and documentation to make them appear as new, legitimate models. These products had a retail value estimated to be hundreds of millions of dollars and generated over $100 million dollars in illegal revenue. 

International Trade Data Analysis

The BITE team recently reviewed data associated with the PRO NETWORK ENTITIES scheme. BITE identified 17 transactions involving two of the Pro Network entities. One of these transactions included “ATTN: RON ONUR AKSOY” in the address line. Ron Aksoy is one of the aliases used by the accused Miami man. Additional transactions were identified in BITE using other key identifying information. Product descriptions for these transactions included “MACHINES FOR RECEPTION TRANSMISSION OF DATA” and “NETWORK EQUIPMENT HS CODE 8517 62 20 PALLETS 3494 PIECES”. The suppliers identified by BITE have been listed on the BITE List. We do not allege wrongdoing but recognize that they may be dealing in counterfeit supply chains. 

Supply Chain Risk Implications

Counterfeit goods entered into the commerce of the United States not only infringe upon copyrights and trademarks of legitimate companies, but they also can pose a significant public safety risk or potentially even a national security risk if they enter the supply chain of the US military or law enforcement. Importers and exporters should conduct strict due diligence to prevent intellectual property rights violations and protect national security. 

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