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article imageCounterfeit semiconductor trafficker sentenced

By Tim Sandle     Oct 8, 2015 in Crime
Peter Picone, a confessed counterfeit semiconductor trafficker, has been sentenced by a U.S. court for sending counterfeit semiconductors to the U.S. Naval Submarine Base in Connecticut.
Digital Journal, back in June 2014, ran a story about a man called Peter Picone. Picone admitted sending counterfeit semiconductors to the U.S. Naval Submarine Base in Connecticut. In a court hearing, Picone pleaded guilty and acknowledged the parts could have put people's lives in danger. The parts intended for the U.S. Navy were sold as being suitable for nuclear submarines.
In total, Picone, through two companies — Tytronix Inc. and Epic International Electronics — sold $2.5 million worth of counterfeit semiconductors to various industries. Due to these activities, Picone has been given a 37 month sentence. This is the strongest punishment to date for the preparation and marketing of counterfeit semiconductors.
Following Picone’s sentencing, the U.S. Semiconductor Industry Association (SIA) has supported the verdict. John Neuffer, president and CEO, Semiconductor Industry Association, stated that the sentencing: “Is a warning to those involved in semiconductor counterfeiting – you do the crime, you do the time.”
He also added: “Counterfeit semiconductors pose a danger to public health and safety, and in the Picone case, could have compromised critical military systems. Semiconductor companies will continue to work with law enforcement officials to root out counterfeit semiconductors, identify and pursue counterfeiters, and prosecute them to the full extent of the law.”
The important message from the case is that components need to be purchased from Original Component Manufacturers (OCMs) or from authorized distributors or resellers. Control of the supply chain is crucial.
To safeguard the U.S. military in the future, the Department of Defense (DoD) have put in place a ruling in relation to the procurement of semiconductors and other electronic parts. A new system of checks is now in place.
More about Semiconductor, Counterfeit, Navy, Peter Picone
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