{"id":16307,"date":"2015-10-08T12:15:19","date_gmt":"2015-10-08T19:15:19","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=16307"},"modified":"2015-10-08T12:15:19","modified_gmt":"2015-10-08T19:15:19","slug":"man-sentenced-for-selling-counterfeit-circuits-from-china-to-u-s-navy","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=16307","title":{"rendered":"Man Sentenced for Selling Counterfeit Circuits from China to U.S. Navy"},"content":{"rendered":"

CONNECTICUT<\/b><\/h2>\n
\n

\"courtroom\"<\/a>A Massachusetts man who plead guilty to importing counterfeit integrated circuits from China and Hon Kong and selling the circuits to the U.S. Navy was sentenced Tuesday to three years in prison, officials said.<\/span><\/p>\n

The Navy used the circuits on its submarines, according to federal officials.<\/span><\/p>\n

Authorities said Peter Picone,<\/strong> 41, of Methuen, Massachusetts, plead guilty in June to<\/span> conspiracy to traffic in counterfeit military goods.<\/span><\/p>\n

In addition to imposing the prison term, U.S. District Judge Alvin W. Thompson<\/strong> of \u00a0Connecticut ordered Picone to pay $352,076 in restitution to the 31 companies whose circuits he counterfeited, and to forfeit $70,050 and 35,870 counterfeit integrated circuits.<\/span><\/p>\n

Officials said Picone further admitted that he knew that malfunction or failure of the integrated circuits likely would cause impairment of combat operations and other significant harm to national security.<\/span><\/p>\n

\u201cPicone risked undermining our national security so that he could turn a profit,\u201d said Assistant Attorney General Leslie Caldwell.<\/strong>\u00a0 \u201cHe sold counterfeit integrated circuits knowing that the parts were intended for use in nuclear submarines by the U.S. Navy, and that malfunction or failure of the parts could have catastrophic consequences.\u201d\u00a0<\/span><\/p>\n

This is the second conviction ever on a charge of trafficking in counterfeit military goods, a relatively new provision in the U.S. Criminal C<\/span>ode that was enacted as part of the National Defense Authorization Act of 2011, said officials.<\/span><\/p>\n

\u201cSupplying counterfeit electronic components to the U.S. Military is a serious crime,\u201d said U.S. Attorney Deidre Daly.<\/strong>\u00a0 \u201cIndividuals who choose profit over the health and safety of the men and women of our armed services will be prosecuted.\u201d<\/span><\/p>\n

Federal agents searched Picone\u2019s business and residence on April 24, 2012, and recovered 12,960 counterfeit integrated circuits, officials said.<\/span><\/p>\n

Officials said Picone knew that \u00a0the \u00a0counterfeit integrated circuits would be supplied to the United States Navy for use in nuclear submarines.<\/span><\/p>\n

From 2007 through 2012, court records indicate Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars\u2019 worth of integrated circuits bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola<\/strong>, Xilinx<\/strong> and National Semiconductor.<\/strong><\/span><\/p>\n

Many of Picone\u2019s customers specified in their orders that they would not accept anything but new integrated circuits that were not from China. Picone told them that the integrated circuits were new and manufactured in Europe, according to officials.<\/span><\/p>\n

Testing by the Navy and one of its contractors revealed that in fact the integrated circuits purchased from Picone had been resurfaced to change the date code and to affix counterfeit marks, all in order to hide their true pedigree, authorities said.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

CONNECTICUT A Massachusetts man who plead guilty to importing counterfeit integrated circuits from China and Hon Kong and selling the circuits to the U.S. Navy was sentenced Tuesday to three years in…<\/p>\n","protected":false},"author":1,"featured_media":3717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1378,550,285,1713],"class_list":["post-16307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-china","tag-integrated-circuits","tag-navy","tag-u-s-submarines"],"yoast_head":"\nMan Sold Counterfeit Circuits from China to U.S. Navy<\/title>\n<meta name=\"description\" content=\"A Massachusetts man who plead guilty to importing counterfeit integrated circuits from China and Hon Kong and selling the circuits to the U.S. Navy.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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