Date: 09-04-2018

Case Style:

Case Number: 1:16-mj-00150-HKS

Judge: Richard J. Arcara

Court: United States District Court for the Western District of New York (Erie County)

Plaintiff's Attorney: Michael DiGiacomo and Wei Xiang

Defendant's Attorney: MaryBeth Covert and

Description: Buffalo, NY - Cheektowaga Man Pleads Guilty To Buying And Selling Counterfeit Airbags

Raymond Whelan, 49, of Cheektowaga, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to traffic in counterfeit goods. The charge carries a maximum penalty of 10 years in prison and a $2,000,000 fine.

Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant operates Rayscarparts71.com. Between June 2015 and March 2016, Whelan and co-defendant David Nichols entered into an agreement to sell counterfeit automobile airbags. Whelan would contact Nichols and order numerous airbags bearing counterfeit trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi. Nichols would then locate manufacturers in China to supply the requested airbags.

In order to avoid detection during importation, the airbags were mislabeled. Once imported into the United States, Whelan would sell the airbags on eBay utilizing the name Rayscarparts71. The airbags were listed on eBay as genuine used airbags designed to fit Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi.

During the investigation, multiple undercover purchases were made from Rayscarparts71 and airbags were seized from the defendant’s business. All the purchased and seized airbags were determined to be counterfeit. The airbags also contained trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi, trademarks registered with the United States Patent and Trademark Office. None of these companies authorized the defendant to utilize their trademarks.

Whelan imported and sold more approximately 360 counterfeit automobile airbags with an average manufacturer’s retail price of $650.00. The total infringement amount was $236,600.

Co-defendant David Nichols was previously convicted and is awaiting sentencing.

The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.

Charges:

18:2320.F TRAFFICKING IN COUNTERFEIT GOODS/SERVICES (SUB OFFENSE)
(1)
18:2320.F TRAFFICKING IN COUNTERFEIT GOODS/SERVICES (SUB OFFENSE)
(2-4)
18:545.F SMUGGLING GOODS INTO THE U.S. (EXCEPT NARCOTICS AND LIQUOR) and 18:2
(5-9)

Outcome: 08/30/2018 Minute Entry for proceedings held 8/30/2018 before Hon. Richard J. Arcara as to Deft, Raymond Whelan (1). Change of Plea proceeding is held. Deft pleads guilty to Count 1 of the Indictment. Deft is continued on bail in accordance with the terms and conditions previously imposed by the Magistrate Judge. The following schedule is established for the submission of sentencing papers: initial Presentence Investigation Report due by 11/2/2018; Statement with Respect to Sentencing Factors, objections and/or motions, including 5K1.1 motion, government notice not to file 5K1.1 motion, or government motion for extension of time to file 5K1.1 motion, if applicable, due by 11/27/2018; notice by the defendant of government failure to file 5K1.1 motion, if applicable, due by 11/30/2018; responses to objections and/or motions due by 12/3/2018; character letters and/or sentencing memorandum in support of the defendant due by 12/3/2018; motions to adjourn sentencing due by 12/7/2018; final Presentence Investigation Report due by 12/10/2018; government's response papers to legal arguments in defendant's sentencing memorandum due by 12/10/2018. Sentencing is scheduled for 12/17/2018 at 1:00 PM before Hon. Richard J. Arcara. Appearances: Govt - Michael DiGiacomo; Deft - MaryBeth Covert (with Deft); USPO - No appearance -PROBATION NOTIFIED OF PLEA- (Court Reporter Megan Pelka.)(DJD) (Entered: 08/30/2018)
08/30/2018 TEXT ORDER as to defendant, Raymond Whelan (1). The following schedule is established for the submission of sentencing papers: initial Presentence Investigation Report due by 11/2/2018; Statement with Respect to Sentencing Factors, objections and/or motions, including 5K1.1 motion, government notice not to file 5K1.1 motion, or government motion for extension of time to file 5K1.1 motion, if applicable, due by 11/27/2018; notice by the defendant of government failure to file 5K1.1 motion, if applicable, due by 11/30/2018; responses to objections and/or motions due by 12/3/2018; character letters and/or sentencing memorandum in support of the defendant due by 12/3/2018; motions to adjourn sentencing due by 12/7/2018; final Presentence Investigation Report due by 12/10/2018; government's response papers to legal arguments in defendant's sentencing memorandum due by 12/10/2018. SO ORDERED. Issued by Hon. Richard J. Arcara on August 30, 2018.(DJD) (Entered: 08/30/2018)
08/30/2018 Set/Reset Hearings as to Raymond Whelan: Sentencing set for 12/17/2018 01:00 PM before Hon. Richard J. Arcara. (DJD) (Entered: 08/30/2018)

Plaintiff's Experts:

Defendant's Experts:

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