It was not a good day for convicted counterfeit Cisco swindler - Charles Lacy-Thompson:
 Michael J. Garcia - the United States Attorney for the Southern District of New York, and Mark J. Mershon the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that Charles Lacy-Thompson - the former owner of Coletronic Computer, Inc. was sentenced today to 30 months in prison for trafficking in counterfeit Cisco Systems products. |
The sentence was imposed in White Plains federal court by United States District Judge - Stephen C. Robinson, who also ordered Lacy-Thompson (who showed no visible reaction to the sentence) to pay $2.2 million in forfeiture and restitution.
 "This was a crime of pure greed," said U.S. District Court Judge - Stephen C. Robinson. |
"This was an individual who could have done things the right way."
"The only consequence of that is that he would have been less rich."
Judge Robinson said the great majority of the sales Lacy-Thompson's company made during the scheme were fraudulent.
Quoting from a pre-sentence report, Judge Robinson said the company had $3.9 million in sales in 2005 and $4.9 in 2006.
Judge Robinson denied the request of Lacy-Thompson's lawyer, Phil Foglia, who asked that his client receive no prison time.
But the judge's sentence of 30 months was lower than the one requested by Assistant U.S. Attorney Maria Douvas, who sought 46 to 57 months.
Foglia asked the judge to consider aspects of Lacy-Thompson's life other than his crime.
He said Lacy-Thompson has touched the lives of many children as a youth sports coach and been a stellar father to his two daughters.
He has also done volunteer work for a local food pantry, Foglia said.
"He's the kind of man a community wants - a good family man who's interested in the betterment of his community," Foglia said.
Foglia told Judge Robinson that Lacy-Thompson had taken responsibility for his crime.
Lacy-Thompson, who was originally indicted on October 24, 2007, pleaded guilty to the charges on April 30, 2008.
According to the indictment, other documents filed in this case, and statements made in court:
From 2003 to 2007, Lacy-Thompson engaged in a scheme to transport computer equipment and packaging bearing counterfeit Cisco marks.
Specifically, Lacy-Thompson imported generic items from China that resembled Cisco transceivers (which are used to transmit and receive data across networks), as well as packages of white stickers bearing the model number of Cisco transceivers.
Lacy-Thompson and others would then market and sell the generic computer equipment as Cisco products to customers in the United States and Europe through his company, Coletronic, which was located in Ossining, New York.
In accordance with the plea agreement he entered into with the Government, Lacy-Thompson, 52, of Briarcliff Manor, New York, has agreed to forfeit $2.2 million in cash and property to the United States.
Lacy-Thompson has also made payments in back taxes of over $972,000 to the IRS and $211,000 to the State of New York.
Assistant United States Attorney Maria E. Douvas who is in charge of the prosecution said the Lacy-Thompson back tax filings were a result of the government seizing the company's financial records and finding out how much money the company was taking in.
She said imposing a fine and no jail time would not deter others from committing white-collar crimes.
Lacy-Thompson had good opportunities in life, since he came from a well-to-do family, she said.
Judge Robinson agreed with Douvas' arguments.
He said sparing wealthy white-collar criminals from prison sentences is unfair to indigent people who get caught committing crimes to support themselves or their families and end up locked up.
Lacy-Thompson's only comment to the judge was an apology to the court, Cisco and to his family.
Mr. Garcia praised the work of the FBI in the investigation of this case.
This successful prosecution was handled by the Major Crimes Unit of the United States Attorney’s Office.
Do YOU agree with yours truly that the sentence of 30 months in prison is too lenient?
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