An 11-count indictment unsealed Oct. 8 also charges a Newport Coast, Calif. woman, as well as her husband and her brother, with conspiracy and mail fraud, according the U.S. Attorney.

According to the indictment, the defendants acquired counterfeit ICs from sources in China, imported them into the U.S. and sold them via the Internet. They also bought trademark-branded devices and altered them to make it appear that they were of a certain brand, newer, higher quality, or were of military grade, according to the indictment.

The defendants entered into three separate contracts with the U.S. Navy between March and July, according to the indictment, and subsequently shipped counterfeit devices bearing false trademarks, the indictment alleges. It also alleges that the defendants imported more than $140,000 worth of counterfeit ICs from China and Hong Kong in 22 separate incidents.

The defendants operated a number of companies and websites, according to the indictment.

The defendants—Mustafa Abdul Aljaff, his sister, Marwah Felahy and her husband, Neil Felahy—were arrainged in District Court in California and will later appear in District Court in Washington, where the case was indicted, according to the U.S. Attorney.

If convicted, the defendants could face prison terms and more than $5 million in fines, according to the U.S. Attorney.

The Semiconductor Industry Association (SIA) Monday (Oct. 12) issued a statement applauding the U.S. Attorney's Office for the arrests.

By: DocMemory
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