According to the FBI, in his plea, Myers admitted to operating a business under the name of Deals Direct, Inc., from a warehouse in Merriam, Kansas with co-defendant Timothy Weatherly of Overland Park, Kansas. From 2005 through November, 2006, Myers and Weatherly imported computer equipment from China, putting counterfeit Cisco labels on the equipment and selling the counterfeit equipment through various online channels including the company’s own Web site and on eBay. Myers and Weatherly packed the products in Cisco boxes with counterfeit Cisco manuals, selling them as genuine Cisco equipment.
Beyond using Cisco labeled packaging and manuals, the two went one step further, and obtained legitimate serial numbers by accessing Cisco’s confidential serial number verification Web site.
While cases like this are certainly not good for companies like Cisco and other technology vendors that must continually battle counterfeit products, this isn’t what really scares the government and the security industry. A Department of Homeland Security official last week warned that hardware manufactured overseas and shipped to the U.S. was arriving pre-loaded with security bugs..