U.S. Busts
2 Q 2010 (Second Quarter) BUSTS
US Breaks Up Asian Smuggling Ring
On March 19, 2010, US authorities brought charges against nine people for running a vast smuggling ring responsible for thousands of counterfeit shoes and handbags from China and Malaysia.
A federal grand jury in Baltimore indicted four Chinese nationals, two Malaysians and three naturalized Americans. Together they face more than 1,000 years in prison and millions of dollars in penalties. For nearly two years, the suspects sent 33 shipments of counterfeit goods, mostly made in China and Malaysia, to the port of Baltimore until December 2009. The goods included 120,000 pairs of counterfeit Nike shoes, 500,000 fake Coach handbags, 10,000 pairs of counterfeit Coach and Gucci shoes and 500 counterfeit Cartier wrist watches, the indictment said.
“Criminal organizations that smuggle and sell counterfeit goods in the United States endanger our economy and rob legitimate industries of their business,” said John Morton, assistant secretary of US Immigration and Customs Enforcement.
The prosecutors alleged that the suspects also laundered $122,943.50 for the illegal operations and said that London authorities had also confiscated 350,000 pounds ($530,000 dollars) in cash. During the operation, one of the suspects sent a sample of fake Viagra pills to an undercover agent, hoping to branch out into sales of the erectile dysfunction drug. The suspects were charged with 72 counts of smuggling, trafficking in counterfeit goods, conspiracy and money laundering.
If convicted on all counts, they together face 1,095 years in prison and $66 million in penalties. The defendants were identified as Malaysian nationals Wai Hong Yong and Eng Cheng Kee, Chinese nationals Hexing Yang, Chan Hong Xu, Lidan Zhang, Kai T. Jaing and US citizens Josephine O. Zhou, Kin Yip Ng and Yenn-Kun Hsieh.
The suspects were arrested across the eastern United States and the Pacific territory of Guam and were brought to Baltimore according to US officials.
Yahoo! News, March 19, 2010 (Associated Press)
Operation Faux Bowl: The ICE Super Bust
A month-long operation executed by federal and local law enforcement authorities in South Florida resulted in the seizure of 8,165 items of counterfeit Super Bowl-related memorabilia and other counterfeit items. The confiscated merchandise was valued at more than $400,000, according to ICE (US Immigration and Customs Enforcement).
The NFL (National Football League) cooperated with law enforcement in an operation dubbed Operation Faux Bowl, which started before the Miami-based Pro and Super Bowls in January 2010 and yielded six arrests.
“Two major games in the same week, in the same city was a strong magnet for criminals who steal trademarks and knock off trusted brands to sell their substandard wares,” said John Morton, assistant secretary of Homeland Security for Immigration and Customs Enforcement. “ICE made a major dent in these criminals’ plans to profit from fan enthusiasm. We struck a blow for the consumers, the businesses and the American workers who are hurt by this kind of crime.”
Most of the seized items were knockoffs of allegedly official NFL merchandise. Special agents seized counterfeit merchandise in Miami Beach, Miami Gardens, Pompano Beach, Fort Lauderdale, Hollywood, Boca Raton and other south Florida cities.
NBC Sports, February 18, 2010 (Michael David Smith)
NBC Sports, February 18, 2010