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Operations Manager Sentenced for Sale of Counterfeit Integrated Circuits to the U.S. Government

On February 22, 2012, Neil Felahy, Operations Manager for MVP Micro, a California based company, was sentenced to 20 months in prison in U.S. District Court, District of Columbia.  Mr. Felahy was convicted for conspiring to sell counterfeit integrated circuits to the U.S. military, defense contractors, and others.  Upon completion of his prison term, Mr. Felahy will be placed on three years of supervised release and perform 500 hours of community service.   As part of the plea agreement, Mr. Felahy agreed to pay, jointly and severally with Mustafa Abdul Aljaff, MVP Micro's owner, $184,612 in restitution to the semiconductor companies whose trademarks were infringed as a result of their criminal acts.  Mr. Aljaff was sentenced on February 15, 2012.  

Mr. Felahy pled guilty soon after his arrest and cooperated with authorities as the investigation continued.  According to the government's evidence, he conspired in a highly sophisticated fraud scheme to import, sell, manufacture, and distribute, in interstate and international commerce, counterfeit integrated circuits that were sold to buyers in the U.S. and abroad, including those in the transportation industry.  The conspiracy took place between September 2007 and August 2009. 

The investigation was conducted with Immigration and Customs Enforcement, Naval Criminal Investigative Service, Internal Revenue Service-Criminal Investigation Division and the Postal Inspection Service.