NC Man Pleads Guilty to Trafficking in Counterfeit Airbags, Violating Hazmat Marking Rules
A North Carolina man pleaded guilty Oct. 22 in U.S. District Court in Charlotte to trafficking in counterfeit airbags, said Immigrations and Customs Enforcement. Igor Borodin, 27, also pleaded guilty to delivering and causing to be delivered hazardous material, that being airbags, by air commerce in violation of rules and regulations prescribed by the Secretary of Transportation.
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A federal criminal indictment dated Aug. 21 charged Borodin with one count of trafficking and attempting to traffic in counterfeit airbags bearing the registered trademarks of automobile manufacturers, and one count of delivering and causing to be delivered hazardous materials (airbags) to air carriers for transportation in air commerce, ICE said. The indictment also contained a notice of forfeiture of all of the proceeds of the crime, which includes all of the seized counterfeit airbags, $60,000 in funds seized during the investigation and several pieces of real estate in Charlotte and the state of Washington.
Borodin is part-owner of Krugger Auto, located in Charlotte, ICE said. On Aug. 16, law enforcement officers executed federal search warrants at Krugger Auto and Borodin's residence. While executing the search warrants, special agents recovered 99 counterfeit airbags from Borodin's business and 1,514 counterfeit airbags from his residence, ICE said. Borodin had purchased counterfeit airbags from China, which he then resold through eBay, it said. The counterfeit airbag shipments ordered by Borodin did not display the legally-required hazardous material warnings when the shipments were transported in air commerce from China to the U.S.
DOT has classified airbags as Class 9 dangerous goods, and as such they must be classified, documented, packaged, marked and labeled in accordance with the Hazardous Materials Regulation. The transportation of airbags without legally-required warnings of the hazardous material contained in airbag shipments pose a safety risk to all persons transporting and handling the unmarked hazardous materials, it said.
Borodin sold at least 7,000 counterfeit airbags online, said ICE, and between February 2011 and May 2012 Borodin received at least $1.4 million in revenue from eBay sales of counterfeit airbags. Independent testing of a counterfeit airbag sold in September 2011 by Borodin through eBay showed that the airbag did not properly inflate, ICE said.
Trafficking in counterfeit airbags carries a maximum term of ten years in prison and a $2 million fine. Delivering hazardous material carries a maximum prison term of five years in prison and a $250,000 fine.
At the Oct. 22 plea hearing, the judge also issued a consent order and judgment of forfeiture. Pursuant to the consent order, the court found that, as a result of his criminal conduct, Borodin obtained $1,743,400 in proceeds which he must forfeit, ICE said. In addition, the court ordered forfeiture of numerous specific properties including Borodin's residence, all of the seized counterfeit airbags and $60,000 in cash seized from his Indian Trail home.