Defendant Used Fictitious Names and a Shell Company to Receive Stolen Parts
OAKLAND – LAWFUEL – The Law News Network – The United States Attorney’s Office for the Northern District of California announced that Vinh “Vincent” Duong was sentenced late last Friday to 41 months in prison for transporting stolen goods from Mexico to the United States an making false statements to the FBI.
After a one-week trial, a federal jury convicted Mr. Duong on April 13, 2005. Mr. Duong was convicted of conspiring to transport stolen property (in violation of Title 18, United States Code, Section 371), 6 counts of transporting stolen property (each in violation of Title 18, United States Code, Section 2314), and one count of making false statements to FBI agents (in violation of Title 18, United States Code, Section 1001). During the trial, evidence showed that Mr. Duong paid approximately $9,000 to an employee in the Guadalajara, Mexico, plant of San Jose-based Sanmina-SCI so that employee would ship hundreds of thousands of dollars of electronic parts to businesses controlled by Mr. Duong.
Mr. Duong, 31, of San Jose, was indicted by a federal grand jury in May 2003. Another federal grand jury returned a superseding indictment against Mr. Duong in October 2004. That superseding indictment alleged that in about March 2002, Mr. Duong bribed a then-employee of Sanmina-SCI, Inc., a contract manufacturer with dual headquarters in San Jose, California, and Huntsville, Alabama, so that employee would ship electronic parts to a shell company of Mr. Duong’s at prices far below the market value of those parts – in many instances approximately 1% of market value.
Testimony at trial indicated that Mr. Duong paid approximately $9,000 to this corporate employee, and that, in turn, that employee obtained unauthorized access to Sanmina-SCI’s computer system, created false shipping documents and invoices, and caused approximately $1,000,000 worth of electronic components to be shipped to the companies that the defendant operated in the East Bay. The employee previously pleaded guilty to international transportation of stolen goods, and she testified at Mr. Duong’s trial. She is scheduled to be sentenced on August 26, 2005, before United States District Court Judge D. Lowell Jensen in Oakland.
Evidence presented at trial showed that Mr. Duong created a shell company called “Parity Technologies, Inc.” for the express purpose of receiving these stolen parts shipments while he continued to operate his other business under the name “Shining Star Technologies.” Evidence showed that Mr. Duong then sold substantial amounts of the fraudulently obtained parts through the business “Shining Star Technologies.” Evidence also showed that Mr. Duong did not pay at all for the fraudulently obtained parts until the day after the FBI interviewed him in connection with this investigation. After that interview, evidence presented indicated that Mr. Duong withdrew substantial amounts of cash from his bank accounts, purchased money orders, and sent about $16,000 to Sanmina-SCI. Mr. Duong was also convicted of lying to FBI agents during that interview.
The sentence was handed down by U.S. District Court Judge D. Lowell Jensen, who also sentenced Mr. Duong to three years of supervised release to follow the jail term. Judge Jensen also ordered defendant to pay an $800 special assessment ($100 per count of conviction), and Judge Jensen stated that within the next 90 days he will determine the restitution to be paid to the victim corporation. Judge Jensen ordered Mr. Duong to surrender on September 22, 2005, to serve his sentence of imprisonment.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Katie Glynn, Cynthia Daniel, and Deborah Kusber. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
A copy of this press release and related court filings may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can .
Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.