Mass. Man Charged for Importing Counterfeit Semiconductors; Sold for Use on Navy Submarines
A Massachusetts man was charged June 25 in Connecticut U.S. District Court with importing counterfeit semiconductors from China and selling them to defense contractors, according to an indictment unsealed July 15. Peter Picone was charged with 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. Picone faces up to 20 years in prison for some of the charges.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Between February 2007 and April 2012, Picone allegedly purchased counterfeit semiconductors from Hong Kong and China through two companies he owned and operated, Tytronix and Epic International Electronics, the indictment said. Picone also made false representations about the semiconductors and sold them to customers throughout the U.S., including to companies he believed were defense contractors, said Immigrations and Customs Enforcement.
Some of the semiconductors sold by Picone were purportedly intended for use on nuclear submarines. “By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal gain above the safety and well-being of dedicated U.S. servicemen and women," said 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,” she said.
Email ITTNews@warren-news.com for a copy of the indictment.