A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors automotive diagnostic equipment used by mechanics to identify problems with GM vehicles.
Justin DeMatteo, 31, of Saxe was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his guilty plea last December to one count of trafficking in goods bearing counterfeit marks.
In addition to his prison term, DeMatteo was sentenced to three years of supervised release, and ordered to pay restitution of $328,500, the full amount of GM’s losses. The court also entered a consent order of forfeiture requiring him to lose $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home during December of 2011.
DeMatteo admitted he sold counterfeit GM-branded “Tech 2” vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls. DeMatteo said he offered for sale purported Tech 2 units and CANdi modules (an updated add-on for newer vehicles) with counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal.
DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China, and in many cases had them drop-shipped directly from the PRC to U.S. customers. During the searches in 2011, federal agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units.
According to the so-called stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.
