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. Sentencing is
scheduled for December 17, 2018, at 1:00 p.m. before Judge Arcara.