Burlington County Man Who Sold Counterfeit Computer Parts Sentenced

A Burlington County man has been sentenced to one year in prison for buying counterfeit computer components from a factory in China for sale in the United States, Acting U.S. Attorney William E. Fitzpatrick announced.

Ronald Graban, 58, of Columbus, previously pleaded guilty to an information charging him with mail fraud and money laundering. He was also sentenced to one year of supervised release, fined $60,000, and must pay restitution of $927,193.

Graban entered into the business of buying and reselling computer parts in 2000, according to documents filed in the case and statements made in court. He set up and operated various businesses, including RPR International LLC, Graham Enterprises International, Innovative Technology Group, MT Loveland Corp., Golden Eagle Property Management, Andy Lee Inc., and Andy Lee Electronics.

In December of 2004, he began buying computer parts from a company in China named GigaLight Electronic (HK) Co. Ltd., a/k/a Eflow (GigaLight/Eflow). These parts were mostly network connecting parts, and appeared identical to parts manufactured by Cisco Systems Inc. and Nortel Networks, two large computer parts and services companies. ¬Graban represented to certain persons at the Internet retailer that the parts were genuine Cisco and Nortel parts, according to authorities.

In early 2006, Graban learned that GigaLight/Eflow was selling counterfeit computer parts to his companies after U.S. Customs and Border Protection (CBP) seized several shipments of computer parts from GigaLight/Eflow, according to authorities. The companies that worked with GigaLight were told of the seizures and of the fact that the parts seized were counterfeit. Despite being on notice that the computer parts he had been buying were counterfeit, Graban continued to buy those parts and resell them to the Internet retailer, according to authorities.

In February of 2006, Graban caused the Internet retailer to mail him a check, payable to one of Graban’s companies, for $163,000 in payment for counterfeit parts he sold to the retailer. He deposited that check into the bank account of another one of his companies, according to authorities.

From early 2006 to mid-2007, Graban purchased counterfeit Cisco and Nortel components from a factory in China and then resold them to an Internet retailer, who sold them to the public, according to authorities.
In August of 2007, about $890,000 was seized from various bank accounts that Graban maintained in the name of his companies, according to authorities.

Two properties in Florida were seized, but later went into foreclosure. Graban agreed to forfeit the funds seized and the proceeds from the two foreclosure sales, about $40,000.

Image via Shutterstock