By John Oates
25th November 2009
A 32-year-old California man has pleaded guilty to selling thousands of
counterfeit computer processors to the US Navy.
Neil Felahy of Newport Coast, California pleaded guilty to conspiracy
and trafficking in counterfeit goods charges. As part of a plea bargain
Felahy has agreed to co-operate with the US authorities.
He faces a possible five year prison sentence and a $250,000 fine for
the conspiracy charge and 10 years and $2m for the counterfeiting
offences. In reality he is more likely to receive a 30 to 51 month
Felahy's wife and brother-in-law face related charges. They are accused
of importing counterfeit chips from China and selling them to the public
via a website. They are also accused of grinding off existing trademarks
or grades on chips and regrading them - processors are typically marked
commercial grade, industrial-grade or military-grade depending on
quality and testing.
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