Cumming man pleads guilty to massive eBay fraud

ATLANTA - Todd Richard 33, of Cumming, Georgia, pleaded guilty Thursday in federal district court to trafficking in counterfeit products.

"This defendant admitted that he exploited eBay in order to sell hundreds of thousands of dollars of counterfeit computer products, illegally grabbing a profit on the back of the trademark holder," said U.S. Attorney David E. Nahmias. "Selling counterfeit computer components not only puts the consumer at risk in buying an inferior product with no real manufacturer's warranty, but also harms the legitimate manufacturers of these products."

According to United States Attorney Nahmias and the information presented in court: Richard purchased counterfeit "Cisco" computer components from a manufacturer in China and imported them into the United States. Richard received shipments of counterfeit products, and separate shipments of counterfeit Cisco labels. RICHARD then affixed the fake labels to the fake products. Richard then sold the products on eBay, claiming that they were legitimate Cisco items. In selling these counterfeit products, RICHARD used several eBay account names and business addresses. From late 2003 until early 2007, Richard sold over $1,000,000 worth of counterfeit Cisco products. Additionally, when Immigration and Customs Enforcement (ICE) agents executed search warrants at Richard's businesses in early 2007, they seized hundreds of additional counterfeit Cisco products and thousands of counterfeit Cisco labels.

Richard was charged in a Criminal Information in October, 2007 on one count of trafficking in counterfeit Cisco trademarks. He pleaded guilty to this charge. He could receive a maximum sentence of 10 years in prison and a fine of up to $2,000,000.

Sentencing is scheduled for January 24, 2008, at 10 a.m., before United States District Judge Timothy C. Batten, Sr. This case is being investigated by Special Agents of the United States Immigration and Customs Enforcement (ICE).

Assistant United States Attorney Aaron M. Danzig is prosecuting the case.