Boston Man Charged with Selling Counterfeit Parts to US Military
WASHINGTON, DC -- The US Justice Department has lodged a criminal complaint against a suburban Boston businessman for importing counterfeit semiconductors from China for sale in the US.
Peter Picone, 40, of Methuen, MA, has been indicted on eight counts of conspiring to traffic in counterfeit goods, conspiring to traffic in counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring to commit money laundering. The indictment was returned by a federal grand jury in New Haven, CT, on June 25 and was unsealed today.
The indictment charges that from February 2007 through April 2012, Picone, through two companies he owned and operated, Tytronix and Epic International Electronics, purchased counterfeit semiconductors from sources in Hong Kong and China. According to the indictment, Picone made false representations about the semiconductors and sold them to customers throughout the US, including companies believed by Picone to be defense contractors in Connecticut and Florida. Certain semiconductors sold by Picone were intended for use on nuclear submarines.
Picone faces a maximum penalties of five years to 20 years in prison for each count. The indictment also seeks forfeiture of proceeds from illicit trafficking in counterfeit goods and wire fraud as well as the seizure of the goods and any property involved in the money laundering conspiracy.
“By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal gain above the safety and well-being of dedicated US servicemen and women,” said US Acting Assistant Attorney General Mythili Raman. “As charged in the indictment, Picone went to great lengths to conceal the true origin of counterfeit semiconductors in order to sell the devices as seemingly legitimate and reliable components for use in nuclear submarines and other complex machinery. The charges unsealed today demonstrate our steadfast commitment to working with our law enforcement partners to prosecute counterfeiters and others who risk the security of the men and women of the U.S. military.”
“Counterfeit semiconductors pose a serious health and safety risk to consumers and end-users, and an even greater threat to the safety of the men and women of our armed services when they are sold for use in the military,” said Acting US Attorney Deirdre Daly. “We will prosecute these types of cases to the fullest extent of the law.”
Picone was arraigned before a US magistrate judge in Hartford, CT, and was released on bond. Trial is scheduled for Sept. 9.
