[ISN] Man guilty of selling fake chips to US Navy

[InfoSec News]

http://www.channelregister.co.uk/2009/11/25/us_navy_fake_chips/

By John Oates
The Register
25th November 2009 

A 32-year-old California man has pleaded guilty to selling thousands of 
counterfeit computer processors to the US Navy.

Neil Felahy of Newport Coast, California pleaded guilty to conspiracy 
and trafficking in counterfeit goods charges. As part of a plea bargain 
Felahy has agreed to co-operate with the US authorities.

He faces a possible five year prison sentence and a $250,000 fine for 
the conspiracy charge and 10 years and $2m for the counterfeiting 
offences. In reality he is more likely to receive a 30 to 51 month 
sentence.

Felahy's wife and brother-in-law face related charges. They are accused 
of importing counterfeit chips from China and selling them to the public 
via a website. They are also accused of grinding off existing trademarks 
or grades on chips and regrading them - processors are typically marked 
commercial grade, industrial-grade or military-grade depending on 
quality and testing.

[...]