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Company Owner Guilty of Trafficking in Counterfeit Airbags

On October 17, 2012, in U.S. District Court, Charlotte, North Carolina, Igor Borodin, owner of Krugger Auto, pleaded guilty to trafficking in counterfeit airbags and transporting them in violation of hazardous materials regulations.  In conjunction with his guilty plea, Mr. Borodin's assets were seized pursuant to a criminal forfeiture warrant.  The forfeiture totaled over $1.7 million which represents the seizure of 99 counterfeit airbags from Mr. Borodin's business; 1,514 counterfeit airbags from his residence; $60,000 in cash; and the seizure of his residence.

Mr. Borodin was previously indicted and arrested for his role in the trafficking of counterfeit airbags and the illegal shipment of undeclared hazardous materials in air commerce.  The airbag systems are designed with an incendiary detonator.  During testing of the counterfeit airbags by the National Highway Traffic Safety Administration, it was established that the airbags were volatile systems in that they were capable of not deploying at all, expending shrapnel and causing a fire, or both, when detonated.

This was a joint investigation with the Department of Homeland Security Investigations, and the North Carolina Division of Motor Vehicles, Highway Patrol.