According to PCWorld, Intel has begun their investigation regarding counterfeit i7 processors sold by Newegg, that were shipped to its customers. Customers are reporting that they received a clay mold of a heatsink, and a piece of scrap metal as the processor. An Intel spokesperson confirms the fake i7 chips in an email:

The examples we have seen are not Intel products but are counterfeits.”

Newegg released this statement:

Newegg is aware of a shipping error that occurred with certain recent orders of the Intel Core i7-920 CPU. After investigating the issue internally it appears one of our long term partners mistakenly shipped a small number of demo boxes instead of functional units. Our customer service team has already begun proactively reaching out to the affected customers. In line with our commitment to ensure total customer satisfaction, we are doing everything in our power to resolve the issue as soon as possible and with the least amount of inconvenience to our customers

According to some reports, there are at least 300 chips shipped so far, and more are showing up.

Here is a video of a customer showing the counterfeit chip that he received: