Nixa woman pleads guilty to $80M counterfeit scheme

A Nixa woman who sold cellphone parts online and through a Springfield store pleaded guilty yesterday to an $80 million fraud scheme involving counterfeit goods.

Sherrie Householder, 59, waived her right to a grand jury and pleaded to one count of mail fraud, one count of money laundering and one count of tax evasion, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.

In her guilty plea, Householder admitted that from Dec. 3, 2012, to Jan. 14, 2016, more than $80 million worth of counterfeit items were sold through Flash Technology LLC, dba Flash Tech. Householder served as manager of U.S. activities for the company, which was owned by Chinese citizen Wang “Frank” Lou. Householder received nearly 5,000 international shipments Lou sent from China.

The business, which operated at 2231 W. Sunset St. in the Battlefield Business Center west of Chestnut Expressway, sold such parts as screens, lithium batteries, weight scales, phone cases and internal circuitry. Householder claimed the components were manufactured by legitimate companies, including Apple and Samsung, but they were actually counterfeit, according to the release.

Homeland Security Investigations and Customs and Border Protection intercepted at least nine of the shipments from China to the United States, and all items were found to be counterfeit. The cash amount of merchandise seized during the inspections was $359,539.

After the agencies seized the items, Householder had Lou’s future shipments sent to different names and addresses before being rerouted to Flash Tech, according to the release.

On Feb. 2, officials executed search warrants on Householder’s residence and the Springfield store, where they seized thousands of cellphones, electronics and components. The items seized were valued at $5.5 million and filled two large moving trucks.

In her guilty plea, Householder also admitted she failed to pay taxes between 2013 and 2015, when she earned a total salary of $642,109. She owes $151,838 in back taxes, as well as $32,743 to the Missouri Department of Revenue, according to the release.

As part of her guilty plea agreement, Householder is required to forfeit to the government $556,938 from PayPal, Amazon and bank accounts, desktop and laptop computers, hard drives, computer and cellphone components, and a money judgment of $8.9 million.

Under federal statutes, she could be sentenced to up to 35 years in prison without parole, according to the release.