CALIFORNIA COMPUTER THEFT RING BROKENTechnology News: Calif. Grand Jury Indicts Computer Component Supplier for Trafficking in Stolen GoodsCalif. Grand Jury Indicts Computer Component Supplier for Trafficking in Stolen Goods

by Alan Fein

A Grand Jury in San Jose indicted the owner of a California computer component and supply business Thursday for trafficking in stolen computers and money laundering, the US Attorney's office said.

June 24, 2005 (AXcess News) San Jose - A Grand Jury in San Jose indicted the owner of a California computer component and supply business Thursday for trafficking in stolen computers and money laundering, the US Attorney's office said.

The indictment charges Gilbert Goncalves, 51, of Cerritos, California, a partner in G&G Assemblers/Crystal Technologies ("G&G"), located in Santa Ana, with 1 count of conspiracy to possess goods from stolen interstate shipments, 2 counts of possession of stolen interstate shipments, 13 counts of interstate transportation of stolen property, 6 counts of money laundering to promote his illegal activities, and 6 counts of transactions involving proceeds of over $10,000 derived from his crimes.

According to the indictment, Mr. Goncalves and his company, G&G, were in the business of buying, selling and manufacturing computer memory and networking equipment. Mr. Goncalves allegedly acquired stolen computer equipment, including Cisco components, TV/VCR units and DVD drives, using an intermediary in San Jose in an attempt to conceal these dealings. The defendant also allegedly fabricated false bills of lading and packing slips and made cash payments to conceal the true nature and source of the stolen property. From approximately June 2000 to March 2001, Mr. Goncalves allegedly made 21 separate deposits totaling more than $961,000 into G&G's checking account, which represented the proceeds of the sales of stolen Cisco equipment.

Mr. Goncalves is expected to make his initial appearance in federal court on July 14, 2005 before U.S. Magistrate Judge Howard R. Lloyd in San Jose.

The prosecution is the result of an investigation by the Department of Homeland Security - U.S. Immigration and Customs Enforcement, the Internal Revenue Service-Criminal Investigations Division, the REACT Task Force in San Jose, and the Computer Hacking and Intellectual Property (CHIP) Unit of the United States Attorney's Office for the Northern District of California. Assistant U.S. Attorney Mark L. Krotoski and Special Assistant U.S. Attorney Steve Lowney are prosecuting the case.