Press Release
For Immediate Release
October 28, 2003
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U.S. Department of Justice
Debra W. Yang
United States Attorney
Central District of California
Thom Mrozek, Public Affairs Officer
Phone: (213) 89-6947
thom.mrozek@usdoj.gov
www.usdoj.gov/usao/cac
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An Orange County, California businessman
was found guilty on both counts of manufacturing and trafficking in counterfeit
memory modules, in violation of Compaq's United States trademark registrations.
These guilty verdicts represent the culmination of the first criminal
trademark infringement case filed in Orange County.
Tony Minh Nguyen, 37, of Huntington Beach,
was found guilty this afternoon on both counts of the indictment. Nguyen
directed sales and production at Dynasty Memory, Inc., a multi-million
dollar Santa Ana computer supply company.
The jury found that Nguyen directed Dynasty
employees to purchase out-of-date Compaq memory components. Then, Dynasty
employees would remove the Compaq labels and, under Nguyen's direction,
they would re-adhere the Compaq labels to non-Compaq memory components,
creating a product that would be substantially indistinguishable from
genuine Compaq products. Nguyen then directed that these counterfeit parts
be sold as the genuine article. The indictment alleges that the scheme
ran from August 2000 until December 2000.
At trial, the evidence showed that defendant
had counterfeited at least $5 million to $7 million of Compaq computer
memory modules. The evidence included evidence of the manufacturing of
tens of thousands of Compaq computer memory modules.
The investigation into Dynasty's sale of
counterfeit Compaq parts began when consumers started returning to Compaq
memory products that Compaq determined were counterfeit and had originated
from Dynasty. Compaq brought the matter to the FBI, which investigated
the case that resulted in today's arrest.
Nguyen was remanded into custody after the
verdict. The sentencing is scheduled for January 26, 2004. Nguyen faces
a statutory maximum penalty of 20 years in federal prison and fines of
up to $4 million.
This case is the result of an investigation
by the Federal Bureau of Investigation.
CONTACT: Assistant United States Attorney Tom McConville (714) 338-3590
Release No. 02-156
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