Six Sold $25M Counterfeit Software On eBay

Posted on Friday, 4 of April , 2008 at 5:53 pm

WISCONSIN- Six defendants were sentenced this week for selling a combined total of more than $25,000,000 worth of counterfeit computer software on the eBay Internet auction site.

 

Eric Neil Barber, 36, of Manila, Ark.; Phillip Buchanan, 29, of Hampton, Ga.; WendellJay Davis, 44, of Las Vegas; Craig J. Svestka, 38, of West Chicago, Ill.; Robert Koster, 38, of Jonesboro, Ark.; and Yutaka Yamamoto, 61, of Las Vegas, Nev., were sentenced by U.S. District Court Judge J.P. Stadtmueller, for selling counterfeit Rockwell Automation computer software over the Internet in violation of criminal copyright infringement laws.

 

Though each defendant acted separately, the Rockwell Automation software sold by the six defendants had a combined retail value of $25,107,592. These cases arose from a Department of Justice initiative to combat online auction/website piracy.

 

Svetska was sentenced to one year and one day in prison. Judge Stadtmueller alsoordered Svetska to pay $59,690.30 in restitution to Rockwell Automation and serve three years of supervised release upon his release from prison.

 

Prosecutors said from June 4, 2003, through Aug. 4, 2004, Svetska initiated 376 or more separate online auctions on eBay under usernames "branwen2003," "frodo749," "drydae11" and "huskerman54," in which he sold Rockwell Automation software for a personal profit of approximately $59,700. The actual retail value of this software was more than $7.6 million. Svestka admitted that he was "familiar with Rockwell Automation from a prior job he held and was always worried about copying and selling the software because he knew it was illegal."

 

Barber was sentenced to four months in prison, six months home confinement withelectronic monitoring, three years supervised released following his release from prison and ordered Barber to pay $32,465.10 in restitution to Rockwell Automation. From Apr. 29, 2003, through Aug. 12, 2004, Barber initiated 217 or more separate online auctions on eBay under usernames "lottagold," "dragonfly.2003," and "got6towin," in which he sold copies of Rockwell Automation software for a personal profit of approximately $32,500. The actual retail value of this software was more than $1.4 million.

 

 

Koster was sentenced to four months in prison, six months home confinement withelectronic monitoring, three years supervised released following his release from prison and ordered Koster to pay $23,022.64 in restitution to Rockwell Automation. From Sept. 4, 2003, through Sept.14, 2004, Koster initiated 105 or more separate online auctions on eBay under usernames "gsxr49," and "kevvin23," in which he sold copies of Rockwell Automation software for a personal profit of approximately $23,000. The actual retail value of this software was more than $5.4 million.

 

 

Davis was sentenced to four months in prison, four months home confinement withelectronic monitoring, three years supervised released following his release from prison and ordered Davis to pay $17,046.05 in restitution to Rockwell Automation. From Feb. 17, 2003, through Aug. 30, 2004, Davis initiated 53 or more separate online auctions on eBay under usernames "periwinkle2262" and "phoenix-electronics," in which he sold copies of Rockwell Automation software for a personal profit of approximately $17,000. The actual retail value of this software was nearly $8 million. Davis admitted that he knew he was doing wrong, but felt he would not be caught because he was aware of others on eBay who were selling counterfeitRockwell Automation software.

 

 

Buchanan was sentenced to three months in prison and seven months home confinement with electronic monitoring. Judge Stadtmueller also ordered Buchanan to pay $13,094.75 in restitution to Rockwell Automation and serve three years of supervised release upon his release from prison. From Jan. 20, 2004, through Aug. 16, 2004, Buchanan initiated 67 or more separate online auctions on eBay under usernames "plchelper14" and "buchanan24" in which he sold Rockwell Automation software for a personal profit of approximately $13,100. The actual retail value of this software was more than $2 million.

 

Yamamoto was sentenced to one month in prison, five months home confinement with electronic monitoring, three years supervised released following his release from prison and ordered Yamamoto to pay $6,126.29 in restitution to Rockwell Automation. From Dec. 7, 2003, through Aug.12, 2004, Yamamoto initiated 92 or more separate online auctions on eBay under usernames "yuhiro2004" and "capcom1981" in which he sold Rockwell Automation software for a personal profit of approximately $6,100. The actual retail value of this software was more than $542,000.

Rockwell Automation, Inc., is a global provider of automation, power, control andinformation solutions. Rockwell Automation, among other things, produces specialized factory management software. This software allows for the establishment of control and visualization disciplines when dealing with factory production lines and machinery. The majority of the software applications sold on eBay had an individual retail price ranging from approximately $900 to $11,325.Rockwell Automation owns the registered copyrights to all Rockwell/Allen Bradley software and the copyright on the product's packaging. Each defendant has forfeited the computers and other equipment used in the offense and will make restitution to Rockwell Automation in the amount equal to their gross profits. The combined total restitution to Rockwell Automation by these six defendants is $151,445.60.4-04-08

Parcel worker stole, sold goods on EBay

By DEAN PRITCHARD, SUN MEDIA

Dozens of UPS customers expecting deliveries of digital cameras, cellphones, Ipods and other electronic gear received nothing but empty boxes after a former staffer pilfered the equipment and then sold it on EBay, a court heard yesterday.

Glenn Elia previously pleaded guilty to one count of theft and was sentenced yesterday to 15 months house arrest.

Court heard Elia, 25, was responsible for preparing packages for delivery. Over the course of nine months, he looted the contents of 60 packages worth $7,000 and sold them on EBay.

"The breach of trust was significant," said Judge Rocky Pollack. "Not only because of the proceeds taken, but because the employer was in the business of marketing its trustworthiness to deliver consumer goods."

When UPS security staff confronted Elia about the thefts in late 2006, he implicated six other employees. Elia said he had previously been buying the stolen goods from the employees and selling them online -- until the employees taught Elia how to steal the items himself and reseal the packaging to avoid detection.

"Starting off as a stolen goods retail vendor for a group of workforce thieves, he vertically integrated that by becoming the means of production of stolen goods as well," Pollack said.

Court heard no charges were laid against the other six employees, all of whom continue to work for the company.

Pollack said Elia was a suitable candidate for a conditional sentence given his clean prior record and co-operation with police.

A UPS spokesperson said she was unaware of the incidents, but said the company takes customer security "very seriously."

"If we are made aware of any thefts we would open an immediate investigation," said Cristina Falcone. "If the investigation reveals the employee is responsible, that would lead to immediate termination."

The pieces of Hollywood history were priced to move, even by the discount standards of EBay. Ten bucks put a bidder in the running for a dagger purportedly used in the filming of "Gone With the Wind," a decanter from "I Love Lucy" and a birdhouse from "Lord of the Rings." Bidding for other memorabilia, including a vase said to be from "Casablanca," opened at only 99 cents.

The bargain-basement prices offered by a Marina del Rey antiques dealer this spring sparked two reactions online: furious bidding and deep suspicion. As fans drove the prices up -- the dagger sold for $713 -- a group of seasoned collectors from across the country became convinced the items were phony.

"The most obvious fakes I'd ever seen," pronounced James Tumblin, a Hawaiian who said he owns the world's largest collection of "Gone With the Wind" memorabilia.

Frustrated by the lack of response from police, the collectors became a sort of Internet posse. They traced the dagger to a factory in modern-day Japan, the birdhouse to a Big Lots and the vase to the former West Germany -- a country whose existence postdated "Casablanca" by seven years.

They used their findings to warn away other bidders and lobby EBay to shut down online stores selling the dealer's merchandise.

"I really felt people had a right to know," said Jennifer Henderson, a vintage clothing collector who said she and her husband, Bryce, spent more hours "than I am comfortable admitting" investigating the dealer, Global Antiques.

EBay suspended the two Culver City consignment stores that listed the items last month. One of the consignment stores, AuctionDepotLA, has since closed.

Neither Global Antiques owner Greg Jones nor representatives of the consignment shops returned calls. No charges have been brought against Jones, Global Antiques or any of the stores involved. In a statement, EBay said privacy policies prevented it from disclosing the reasons it shuttered the auctions of those selling Global Antiques' merchandise.

Auction fraud is the most commonly reported crime online, according to the federal Internet Crime Complaint Center, also known as the IC3.

As local police and auction houses struggle to keep up, citizens are increasingly stepping in to the gap and making what amount to cyber citizen arrests.

"Our speculation is that the posse mentality can take care of these situations faster than the host can," said Craig Butterworth, a spokesman for the National White Collar Crime Center, which jointly administers the IC3 with the FBI.

In some cases, law enforcement encourages citizen investigators. Det. Alex Moreno of the LAPD's computer crimes unit said legwork by victims can make a case more attractive to officers who prioritize "voluminous" complaints of auction fraud by the number of victims and the amount of money lost.

"I tell them to see if they can find other people who got scammed because then we will be able to show a pattern of conduct," Moreno said.

He said the angry bidders feel energized by their amateur detective work.

"People are savvy, especially when they've been wronged," he said.

Culver City police investigated the sales after being contacted by the Hendersons and a Kansas woman who said the nearly $15,000 in "I Love Lucy" memorabilia she bought was a hodgepodge of junk with no connection to the television show.

Det. Kirk Newman said the listings seemed obviously questionable. He noted that a disclaimer warned that the items were "not for investment or resale purposes."

"If it was truly the collectible they say it is, why would it be listed for $25?" he said.

Still, he said, he determined that the consignment stores in his jurisdiction, AuctionDepotLA and AuctionShopUSA, had done nothing illegal.

"These people don't know what they are selling. Someone just comes in, gives them something and they put it online," he said.

Newman interviewed Jones, who said that he got the items through connections at movie studios. Global Antiques was in Marina del Rey, out of Newman's jurisdiction, and he closed the case.

It was a frustrating response for the collectors monitoring the sales and those who believed that they were duped.

"It's like pulling teeth to get anyone to do anything," said Debbie Nickerson, the "I Love Lucy" buyer from Kansas.

She had bought almost 300 Global Antiques items when she received an e-mail about a glass decanter she won with a $36 bid.

"It said the decanter was manufactured for the bicentennial in 1976, so how could it have been a prop on 'I Love Lucy'?" she said.

A film prop collector from suburban Sacramento, Jason DeBord, began cataloging questionable merchandise from Global Antiques in April on his website, Original Prop Blog. DeBord, a Realtor, posted e-mails from customers as well as his research. He began tracking the items on a spreadsheet. The sales were small but numerous.

"It averaged out to a thousand dollars a day," he said.

After learning that items identical to those advertised as Hollywood memorabilia were turning up in TJ Maxx and Big Lots stores, DeBord posted a map showing the proximity of both chains to the Culver City consignment shops.

Jennifer Henderson said she e-mailed winning bidders and directed them to DeBord's blog.

"Some were dubious of what I was doing, but a lot of them were grateful," she said.

EBay has a policy against third parties interfering with auctions. The company asks users to e-mail its fraud department with concerns. The collectors investigating Global Antiques said they did so, but were displeased with the automated responses they received.

On June 19, a lawyer representing Jones wrote a letter to Bryce Henderson demanding that he stop the "overwrought and relentless campaign to discredit and damage" Global Antiques and the consignment stores.

Reached by phone, the attorney, Edward Schloss, said he was hired only to write the letter and had no comment on the fraud allegations other than noting that police determined no crime occurred.

Darren Julien, the owner of Julien's Auctions, a Los Angeles company that has sold memorabilia including the puffy shirt from "Seinfeld" and Alfred Hitch****'s passport, said one of his clients spent $6,000 on Global Antiques items.

"The people on the really high-end scale tend to be more savvy. It's the people who want to get into collecting, who can spend maybe $5 to $10,000 who get burnt," he said.

harriet.ryan@latimes.com


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Bolding mine ^^^

Here is the Original Prop Blog

Office manager embezzles, buys Disney items on Ebay

Janet Clifford, an office manager for Panorama Custom Home Builders on Marco Island, stole about $196,000, asking her boss to sign checks for subcontractors and depositing them into her account

By AISLING SWIFT (Contact)
Wednesday, July 30, 2008

Janet Clifford, an office manager for Panorama Custom Home Builders on Marco Island, liked Disney collectibles. So the Naples woman bought thousands of them -  about $200,000 or $300,000 worth on eBay.

But the Naples woman purchased them even though she didn't have the cash: She embezzled the money from her boss, Roy Lansdown, the company's president, asking him to sign checks made out to pay suppliers. Then she deposited them into her own bank account.

At least one was used to pay her husband's Naples construction firm, Caliber Construction.

On Monday, Clifford, who is accused of stealing $196,000 between Aug. 1 and May 2, pleaded no contest to scheme to defraud $50,000 or more, a first-degree felony, and obtaining drugs by fraud, a third-degree felony.

Collier Circuit Judge Fred Hardt found her guilty of both.

Defense attorney Janeice Martin told the judge the money was used for expenses for Kevin Clifford's business and to keep the couple living in the manner they were accustomed to. Martin also disputed that the collectibles were worth so much.

She said that Gail Maxwell, Clifford's mother-in-law, will oversee the inventory of collectibles, taking photos of each item and present that to the court within 30 days.

Martin told the judge that Maxwell, who has custody of Clifford's two children, has secured the items in a locked storage unit that only she and Clifford's father have access to. The items then will be turned over to Lansdown's attorney, Fred Cramer of Marco Island.

Martin asked that Clifford, of 3539 Santiago Way, be released until sentencing. Assistant State Attorney Jim Molenaar didn't object and Hardt set Nov. 10 for a status conference.

An arrest report by the Collier County Sheriff's Office shows Clifford wrote 10 checks ranging from about $16,000 to $29,000 to various companies, including at least one, for $16,427.25, to her husband's company. Not all checks were detailed in the report.

County records show the IRS filed a tax lien against the Cliffords last year, showing they owe $81,897.95 for tax years 2003 through 2005. Two foreclosure judgments also were filed against them last year.

When Lansdown heard that several checks written to pay subcontractors were endorsed by Clifford, he called his attorney and they met with Clifford. She admitted depositing five checks in her account. An investigation turned up more.

She admitted to sheriff's investigators that she wrote them out to suppliers, handed them to Lansdown for his signature, then deposited them into her account. She was arrested on May 20 and posted $35,000 bond the next day.

A month earlier, she'd been arrested on the drug fraud charge, accused of forging a doctor's name on a prescription for Vicodin, a painkiller.

Sheriff's reports say she brought the prescription to Sunshine Pharmacy on April 11 and a pharmacy tech thought it appeared suspicious, based on the doctor's signature, and because she didn't recognize Clifford as his patient.

The employee called Dr. James Halikas' office and learned it was forged, and while Clifford waited at the counter, the doctor's office called the Sheriff's Office, which sent a deputy to arrest Clifford.

She admitted she'd been addicted to the painkiller two years ago and had recovered, but now wanted a prescription filled for herself.

She was arrested and freed on $2,500 bond. But due to her arrest on the embezzlement charges, the state filed a motion to revoke the $2,500 bond and she was jailed again on June 11. She faces up to 30 years on the embezzlement charge and five for the drug fraud.

Cramer, Lansdown's attorney, declined comment.

Yes, I agree.  They will never listen unless they stop getting paid.  That is why I like to spell the Ebay Boycott moto:

MAKE NOI$E

To represent that our speaking out against their criminal behavior hits them in the $ sign.

Fraud charges laid for eBay listing

They are fraud and mail fraud.

Both charges are a result of an alleged fraudulent eBay listing for $4,100, the victim being a resident in the United States.

Mansfield will be attending Provincial Court in Liverpool on Sept. 16 to enter a plea for both charges.

Any questions can be referred to the Queens Detachment at 354-5721.

Although this is actually about a Craig's List related crime / scam, there is a directly relevant quote in here

Police Warn of Stolen Goods On-Line

"Detectives said the buyer could also be charged. Metro Police detective Matthew Filter said if it's too good to be true, it probably is, and they would likely charge people who purchase such items."

So, yes, it is true, eventually if not already, folks are going to start suffering when they mistakenly (or purposefully) buy hot items online. Anywhere. I feel sorry for the innocents.

Anyone using Craig's List needs to be just as careful if not more than with ebay.

The one thing about it, which can cut either way, is that the deals are mostly done face to face, and there have been more than one report of things going wrong with deals on Craig's List, both  for buyers and sellers alike.

What evil webs they weave, while trying to deceive. 

-- Edited by showcasemerchandise at 20:35, 2008-08-18

Are they fickled or what? Just last month they announced how they were going to LIMIT multiple identicle listings to cut down on the fraudulent listing counts.

HUMMMM This sounds like when they lowered insertion fees, just to increase the Final Value Fee (selling commission rate).

Now the consumers will be sure to find your listings on Ebay since they market to the wholesale industry with cheap crap.

When will they ever stop?

-- Edited by Rusty at 00:43, 2008-08-21

Out of dozens and dozens of eb crime related stories found on the web each and every day, this one is really worthy of not only a post, but a screencapture as well, IMO.

Too may possible sarcasims to mention here.

Priceless.

Prison for eBay hair tong thief

Criminal proceeding against eBay, its chief halted

UPDATE: Henderson, Ky., man indicted on child porn charges

(mugshot at link)

Gleaner staff report
Originally published 08:34 a.m., September 3, 2008
Updated 08:34 a.m., September 3, 2008

A Henderson County, Ky., grand jury indicted a Henderson man on Tuesday on charges of possessing child pornography.

Justin T. Evans, 19, was indicted on two counts of possession of matter portraying a sexual performance by a minor.

Evans was originally charged with 54 counts of this offense after 54 pornographic pictures of children were allegedly found on a cellular phone he sold on eBay.

Officials said although Evans was indicted on two counts, the remaining 52 charges are still pending.

Evans was arrested in August after the person who purchased the phone off of eBay found the pictures and turned the phone over to city police.

 

related post here:

Looks Like a Prostitution Service Ad From The Home Page of Ebay!

Here are just a recent few of the literally dozens and dozens of ebay crime and fraud related news reports each and every day on the news:

DeKalb County woman convicted in theft ring

Ski, snowboard thefts rise in Vail

Homeless man gets prison for theft, gas station robbery

Ebay Seller Makes $300K on Bogus Damien Hirst Works

Offer on eBay leads to NJ guitar-theft suspects

Cessna worker accused of selling parts on eBay

Employee stole £8k of goods to sell on eBay

Stolen snowboards found through online auction

Police recover stolen jewelry from East County woman

Nurse sentenced over eBay fraud

Court briefs: Brothers plead guilty in theft of military optics

First-ever arrest over alleged fake Nintendos

Stage manager accused of theft from 'Lipstick Jungle'

Sleazy Riders

Guitar listed on eBay a break in theft case

Bongs, Virginity and Other Stuff You Can't Sell on eBay

Prison next for Woodbury woman who sold stolen items on eBay

Phelps Bong Owner Charged After Trying To Sell Piece On Ebay