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Counterfeit Cisco equipment seized in series of raids

US authorities announced on Thursday that they had seized more than US$76 million in counterfeit Cisco Systems computer equipment manufactured in China over the past three years.

Officials said the probe by the FBI and Department of Homeland Security with the Royal Canadian Mounted Police aimed to halt the illegal import and sale of equipment such as counterfeit network routers, switches, network cards and modules -- some of which are used to help protect computer networks important to national security.

Chinese authorities also have cooperated in the Operation Cisco Raider probe, US officials said.

"By intercepting the counterfeit hardware at the ports of entry and dismantling illegal supply chains in the US, the operation has achieved significant successes in protecting the public from the risk of network infrastructure failures associated with these counterfeits," the Justice Department said in a statement.

The ongoing initiative has resulted in more than 400 seizures of counterfeit Cisco network equipment, it said.

"Counterfeit network hardware entering the marketplace raises significant public safety concerns and must be stopped," Assistant Attorney General Alice Fisher said.

"This initiative shows that through collaboration among law enforcement agencies and prosecutors worldwide, we can achieve dramatic enforcement results and protect public safety," she said.

A number of US agencies including the Immigration and Customs Enforcement (ICE) agency, Defense Criminal Investigative Service and Internal Revenue Service have been participating in the wide-ranging investigation.

Over the past two years, 10 people have been convicted of crimes related to the scheme, officials said.

"Crimes like these threaten international commerce, national security and the very safety of our citizens," said Julie Myers, Homeland Security assistant secretary.

"Throughout this investigation, the cooperation and partnership that we received from Cisco Systems, our law enforcement colleagues and Chinese counterparts are a clear example of the results that can be realized through industry, interagency and international cooperation," she said.

The statement said two people were charged on Thursday in Canada with distributing large quantities of counterfeit network components to companies in the US via the Internet.

The Canadian police seized approximately 1,600 pieces of counterfeit network hardware with an estimated value of US$2 million.
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