Guilty electronics counterfeiter could face prison and fines of $5million

Neil Felahy pleaded guilty to conspiracy and counterfeit goods trafficking for his role in an alleged chip counterfeiting scam that ran between 2007 and 2009 – as previously reported in New Electronics. Felahy, his wife Marwah and her brother Mustaffa Aljaff operated a number of microchip brokerage companies, such as MVP Micro (pictured), Red Hat Distributors, Force-One Electronics and Pentagon Components. After importing chips from Shenzhen, China, the family would then sand off brand markings, melt plastic casings and illegally rebrand them. The accused imported over 13,000 fake chips worth more than $140,000. According to officials, the ics sold to the US Navy had the potential to cause sophisticated military and government equipment to fail. Felahy pleaded guilty on condition that charges would be dropped against his wife, but could face fines of over $5million and a jail sentence up to 15 years. The US District Court for the District of Columbia is still pressing charges against his brother in law, Aljaff.