Woman gets prison over counterfeits sold to Navy

AP News
Posted: Oct 25, 2011 4:39 PM
Woman gets prison over counterfeits sold to Navy

A federal judge has sentenced a woman to 38 months in prison for her role in selling the U.S. military counterfeit electronic circuits from China and Hong Kong.

The Justice Department said the case against Stephanie McCloskey of Clearwater, Fla., was the first federal prosecution involving trafficking of counterfeit integrated circuits.

The government said McCloskey, an administrator at VisionTech Components LLC, conspired with the company's late owner to advertise name-brand, trademark-protected integrated circuits and sell hundreds of thousands of them to the U.S. Navy, defense contractors and others. The Justice Department says that in a three-year span, McCloskey and others generated $15.8 million in receipts from the sales of the counterfeit circuits.

Integrated circuits control the flow of electricity in items ranging from consumer electronics to spacecraft and weapons systems.