aaker@apple.com (Mark Aaker) (09/15/90)
PRESS RELEASE U.S. Department of Justice United States Attorney Southern District of Ohio September 13, 1990 Cincinnati, Ohio United States Attorney D. Michael Crites today announced that a Cincinnati computer entrepreneur pled guilty to charges involving the world-wide sales and distribution of counterfeit Macintosh computer chips. Dennis Wayne Hayes (48) entered a guilty plea in U.S. District Court to charges of money laundering, criminal infringement of a copyright and structuring a financial transaction. According to testimony by the Internal Revenue Service investigating agent, Hayes sold approximately 5,000 sets of counterfeit Macintosh 128K ROM computer chips between 1988 and 1990, resulting in gross receipts of approximately half a million dollars. The IRS and FBI began a joint grand jury investigation after receiving information that Hayes was involved in the illegal manufacture and sale of computer chips, and was structuring large currency transactions at local banks to avoid currency transaction reporting requirements. The agents said Hayes structured the purchase of four cashiers checks in the amount of $9,000.00 each during June 1990. The checks were purchased at the First National Bank of Warren County and the Fifth Third Bank and made payable to Hayes Swiss bank account. Federal law requires banks to report transactions of more than $10,000.00 to the IRS. Hayes also structured the purchase of four cashiers checks totalling in excess of $32,000.00 in March 1990. These checks were purchased at the First National Bank of Warren County, Fifth Third Bank and the Central Trust Company and were used to purchase a 1967 Piper Commanche airplane. To counterfeit the computer chips, Hayes purchased blank chips and removed the manufacturers name. He then had the chips silk screened with the Apple logo, copyright information and parts numbers to make them appear genuine. Macintosh 128K ROM information was copied on the chips which he sold for $95.00 to $130.00 per set. Apple Computer does not authorize reproduction of this copyrighted material. Agents from the IRS and FBI executed a search warrant on Hayes residence at 12145 Bear Valley Court, Cincinnati, Ohio on July 17, 1990. In addition to a variety of sophisticated computer and electronic equipment, agents seized over $180,000.00 in cash, $2,000 in travelers checks and various guns, including four (4) Uzi semi-automatic weapons. Hayes Piper Commanche airplane and Chevrolet IROC-Z were also seized. Crites said the seized property, which Hayes obtained as a result of the illegal activity, would be forfeited to the government. Hayes faces a maximum sentence of 26 years in prison and a $775,000.00 fine. No date has been set for sentencing. Questions may be directed to Assistant United States Attorney William E. Hunt at (513) 684-3711.