On December 20, 2019, we blogged this: @StateDept Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. Embassy Seoul. On March 18, 2021, USDOJ announced that the former employee and his spouse were sentenced for their roles in a conspiracy to traffic hundreds of thousands of dollars in counterfeit goods through e-commerce accounts operated from State Department computers at the U.S. Embassy in Seoul, Republic of Korea. Below via USDOJ:
A former U.S. Department of State employee and his spouse were sentenced today for their roles in a conspiracy to traffic hundreds of thousands of dollars in counterfeit goods through e-commerce accounts operated from State Department computers at the U.S. Embassy in Seoul, Republic of Korea.
Gene Leroy Thompson Jr., 54, and Guojiao “Becky” Zhang, 40, pleaded guilty to one count of conspiracy to traffic in counterfeit goods on Dec. 20. 2020. Thompson Jr. was sentenced to 18 months in prison and three years of supervised release. Zhang was sentenced to three years of supervised release, the first eight months of which will consist of home confinement. Thompson Jr. and Zhang were also ordered to forfeit a combined total of $229,302.
According to court documents, Thompson Jr. was an Information Programs Officer employed by the Department of State at the U.S. Embassy in Seoul, Republic of Korea, a position that required him to maintain a security clearance. Zhang resided with him in Seoul. Between September 2017 and December 2019, Thompson Jr. and Zhang sold counterfeit goods on a variety of e-commerce platforms. Thompson Jr. used his State Department computer at the embassy to create numerous e-commerce accounts, including additional accounts under aliases to continue the conspiracy and avoid detection after several e-commerce platforms suspended the couple’s other accounts for fraudulent activity. Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon; and Assistant Director Ricardo Colón of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
The case was investigated by the DSS Office of Special Investigations with assistance from the U.S. Postal Inspection Service. The case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Amy Potter of the District of Oregon.
Counterfeit goods threaten America’s innovative economy, the competitiveness of our businesses, and the livelihoods of U.S. workers. Learn more about IPR violations and other Priority Trade Issues (PTIs) here: https://t.co/iYJPzRyw2S #TradeMatters pic.twitter.com/IzUs0Vxv4c
— CBP Office of Trade (@CBPTradeGov) June 9, 2020