CHARLOTTE, N.C. — Igor Borodin, 27, of Indian Trail, N.C. was sentenced today in U.S. District Court in Charlotte to serve seven years in prison and two years of supervised release for trafficking in counterfeit airbags and for delivering the hazardous airbags by air commerce.
Borodin was ordered to forfeit over 1,600 seized counterfeit airbags, $60,000 in cash, and a residence in Indian Trail. Borodin was also ordered to pay a total of $26,000 restitution to the 118 victims of the offenses who filed claims with the U.S. Attorney’s Office.
In August 2012, a federal criminal indictment charged Borodin with one count of trafficking and attempting to traffic in counterfeit airbags bearing the registered trademarks of automobile manufacturers, and one count of delivering and causing to be delivered hazardous materials (airbags) to air carriers for transportation in air commerce. Borodin pleaded guilty to both charges in October 2012.
According to filed court documents and related court proceedings, Borodin was part-owner of Krugger Auto, located in Charlotte. On August 16, 2012, agents executed federal search warrants, seizing 99 counterfeit airbags from Krugger Auto and 1,514 fake airbags from Borodin’s Indian Trail residence.
Investigators revealed that Borodin had purchased the counterfeit airbags from a Chinese supplier and had resold them on eBay. The investigation into the case revealed that the counterfeit airbag shipments ordered by Borodin did not display the legally-required hazardous material warnings when the shipments were transported in air commerce from China to the United States.
From late 2010 until his arrest in August 2012, Borodin sold over 7,000 counterfeit airbags on eBay. Court records indicate that between November 2010 to August 2012, Borodin had wired $1,061,195 to his suppliers in China to purchase the illegally-imported shipments of counterfeit airbags. Court records also show that between February 2011 to August 2012, Borodin received at least $1,743,400 in payments from selling counterfeit airbags on eBay.
Honda investigators say that two fake airbags purchased from Borodin failed to properly inflate during testing. An examination of the seized airbags by the National Highway Traffic Safety Administration also revealed that airbags had numerous construction and deployment anomalies, including: used airbags of unknown integrity and unknown sanitary conditions, random bag folding methods with unpredictable airbag deployment, airbags cut in non-standard manner to fit inflators, among others.