Pinellas Residents Charged with Selling Counterfeit Circuits to U.S. Navy

Shannon Wren of Treasure Island and Stephanie McCloskey of Clearwater were indicted last week by a Washington, D.C. grand jury on federal charges relating to government fraud. The government alleges that they sold nearly 60,000 counterfeit microchips to the U.S. military. Prosecutors allege that this may have put national security and hundreds of lives at risk. Wren and McCloskey face 10 counts, ranging from conspiracy to trafficking in counterfeit goods to mail fraud.

The Pinellas County residents purportedly sold Chinese and Hong Kong-made integrated circuits, which control the flow of electricity, to the U.S. Navy and defense contractors. The circuits were ordered for use on military warships and planes and in missiles and weapons systems with the belief they were of “military grade.”

Law enforcement indicates that demand for high-caliber circuitry has increased substantially due to the Iraq and Afghanistan conflicts. The military spends substantial sums of money for chips that can withstand desert heat, deep sea cold or vibrations from a missile launch.

According to the Washington Post, the U.S. Commerce Department has found that counterfeit incidents discovered by the military and its suppliers more than doubled between 2005 and 2008 to more than 9,356 cases.

Prosecutors claim that Wren and McCloskey sold the circuits through Wren’s Clearwater-based company, VisionTech Components. McCloskey is a manager at VisionTech. The company was raided by law enforcement last week. Computer equipment and several vehicles were seized.

The U.S. Attorney’s Office says the circuits Wren and McCloskey sold the military were valued at about $426,000. There is no indication that any of the allegedly counterfeit chips were ever installed by the Navy or any defense contractor.

From 2007 to 2009, the company sold $16 million worth of counterfeit circuitry overall, according to prosecutors, including defective parts that were found in chips bound for use on a “life critical” control system for high-speed trains.

Wren is a former drag racer. In addition to VisionTech, he also owns Reborn Couture, a South Tampa fashion retail store. Both he and McCloskey face up to 35 years in federal prison if convicted.