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Vendors arrested at Saturday's Market

Tue, 20 Dec 2011 00:00:00 +1300

Raid Seizes 4,000+ Counterfeit Products

Thu, 15 Dec 2011 00:00:00 +1300

Ocean City Businesses Raided

Wed, 17 Aug 2011 00:00:00 +1200

Dealer indicted for fake high-end products

Thu, 07 Jul 2011 00:00:00 +1200

Grand Jury Hands Down Indictment

Thu, 07 Jul 2011 00:00:00 +1200

Schenectady County D.A. - July 7, 2011
PRESS RELEASE

Schenectady County District Attorney Robert M. Carney announced today that a Grand Jury in Schenectady County has handed up an indictment charging Lawrence Farfield, the proprietor of several Chrysler Avenue businesses, with 49 counts relating to the operation of these businesses. The indictment charges Farfield with operating businesses that traffic in counterfeit trademark items, stolen property, and weapons. In addition, the defendant failed to properly pay employees or accurately report employee salaries to the NYS Department of Labor.

District Attorney Carney stated “this indictment results from the work of many agencies including: New York State Police, Schenectady Police Department, Rotterdam Police Department, NYS Department of Labor, NYS Department of Taxation and Finance, NYS Insurance Frauds Bureau, and NYS Workers’ Compensation Inspector General’s Office working together over many months. I thank the State of New York for cooperating with us through the many agencies that have participated, but also for providing the funds necessary to dedicate a prosecutor to this type of investigation through its Crimes Against Revenue Program (CARP). The dedicated work of ADA Katie McCutcheon (CARP Prosecutor) and Bureau Chief Jennifer Assini (Investigations and Intelligence Unit) were essential in bringing this case forward and fully developing the evidence and criminal theories presented to the Grand Jury for its consideration.”

The defendant was charged with three counts of Trademark Counterfeiting in the First Degree, a Class C Felony, each for possessing over $100,000 of counterfeit trademark items from companies such as Nike, Coach, Chanel, Dooney & Bourke, Tiffany & Co., Louis Vuitton, and UGG. He was charged with possessing such items at American Wear, 1702 Chrysler Avenue, Schenectady, NY on February 17, 2010 and February 16, 2011 as well as at Safe Storage Inc., 1110 Altamont Avenue, Rotterdam, NY on February 16, 2011. He was charged with four counts of Trademark Counterfeiting in the Third Degree, Class A Misdemeanors, for possessing counterfeit trademark items at American Wear on four additional dates in 2010 and 2011. He was also charged with one count of Trademark Counterfeiting in the Second Degree, a Class E Felony, for possessing over $1,000 of counterfeit North Face products at Imaginations, 1702 Chrysler Avenue, Schenectady, NY on February 16, 2011.

It is also alleged that defendant possessed, and offered and / or kept for sale metal knuckles and stun guns. Eight metal knuckles were located at American Wear along with two stun guns. Seven additional stun guns were located at Safe Storage Inc. The defendant also possessed over $3000 worth of stolen merchandise at American Wear, and more stolen merchandise at Imaginations on February 16, 2011. Additionally, the defendant was charged with Offering a False Instrument for Filing in the First Degree and Falsifying Business Records in the First Degree for failing to properly report employee salaries to the NYS Department of Labor.

The indictment includes the following charges:

Trademark Counterfeiting in the First Degree, Class C Felony – 3 counts
Trademark Counterfeiting in the Second Degree, Class E Felony – 1 count
Trademark Counterfeiting in the Third Degree, Class A Misdemeanor – 4 counts
Criminal Possession of a Weapon in the Third Degree, Class D Felony – 17 counts
Disposition of a Weapons, Class D Felony – 17 counts
Criminal Possession of Stolen Property in the Third Degree, Class D Felony – 1 count
Criminal Possession of Stolen Property in the Fourth Degree, Class E Felony – 2 counts
Offering a False Instrument for Filing in the First Degree, Class E Felony – 1 count
Falsifying a Business Record in the First Degree, Class E Felony – 1 count
Willful Failure to Pay Contributions, Class A Misdemeanor – 1 count
Falsifying a Business Record in the Second Degree, Class A Misdemeanor – 1 count

For further information, contact Assistant District Attorney Katie Q. McCutcheon at 388-4364.

Stumar Identified Seized Cosmetics

Tue, 21 Jun 2011 00:00:00 +1200

Feds raid flea market for fake cosmetics

Tue, 21 Jun 2011 00:00:00 +1200

Federal Agents Raid Green Dragon

Fri, 03 Jun 2011 00:00:00 +1200

Philadelphia Musician Facing Insurance Fraud

Thu, 26 May 2011 00:00:00 +1200

Supporter of Terrorists Extradited

Fri, 25 Feb 2011 00:00:00 +1300

Police: Pair sold fake items

Sun, 26 Dec 2010 00:00:00 +1300

Knockoffs at Garden State Plaza Mall

Wed, 22 Dec 2010 00:00:00 +1300

Woman charged with selling knockoffs

Wed, 22 Dec 2010 00:00:00 +1300

Counterfeit raid at PA market

Tue, 07 Dec 2010 00:00:00 +1300

Phone Trafficker Guilty

Mon, 29 Nov 2010 00:00:00 +1300

US v. Majed - Copyright Infrigement

Mon, 22 Nov 2010 00:00:00 +1300

Counterfeit merchandise at Cowtown

Tue, 24 Aug 2010 00:00:00 +1200

Counterfeit items seized on boardwalk

Tue, 17 Aug 2010 00:00:00 +1200

Police raid Wildwood Boardwalk shops

Fri, 16 Jul 2010 00:00:00 +1200

PI's Fighting Intellectual Property Theft

Wed, 07 Jul 2010 00:00:00 +1200

Drobny Private Investigator of the Year

Wed, 30 Jun 2010 00:00:00 +1200

Woman sells counterfeit jewelry in NJ

Fri, 18 Jun 2010 00:00:00 +1200

Philly-based PI lauded by FBI

Fri, 21 May 2010 00:00:00 +1200

NJ Self Insured Association

Thu, 20 May 2010 00:00:00 +1200

Counterfeit Goods Funding Terrorism?

Tue, 18 May 2010 00:00:00 +1200

A crushing day for Rolex man

Tue, 27 Apr 2010 00:00:00 +1200

7,000 fake Rolex watches in Philly

Tue, 27 Apr 2010 00:00:00 +1200

Sleuths are on the case

Fri, 02 Apr 2010 00:00:00 +1300

Beware of Fake Uggs

Fri, 05 Feb 2010 00:00:00 +1300

SOUTH JERSEY - They may look like Uggs and feel like Uggs, but if you got them for a steal, there's a good chance they may be fake. We investigate a counterfeit Uggs operation in South Jersey. Click here to watch video.

Counterfeiting bill approved by committee

Thu, 04 Feb 2010 00:00:00 +1300

HARRISBURG – State Rep. Josh Shapiro, D-Montgomery, last week secured the House Judiciary Committee's unanimous approval for his bill to strengthen Pennsylvania’s trademark counterfeiting law.

Shapiro’s bill (H.B. 2133) would reinstate trademark protections that were overturned last October by the state Supreme Court and clarify the offense of trademark counterfeiting. Since the ruling in October, law enforcement agents have been limited to misdemeanor charges in trademark counterfeiting cases.

"This legislation is needed as my bill seeks to remedy a gaping hole in our law," explained Shapiro. "My bill will help law enforcement punish trademark counterfeiters and ensure that products sold to Pennsylvanians are legitimate. This is an important tool needed to protect businesses and consumers in our state."

According to Stuart Drobny of Stumar Investigations, a Montgomery County firm representing a number of trademark holders across the country, very little can be done to stop trademark counterfeiters until the protections are reinstated.

"During the 2009 World Series, we were forced to serve trademark counterfeiters with cease and desist letters -- no arrests were made as the laws left on the books are a slap on the wrist at best," explained Drobny.

Drobny testified to a meeting of the Judiciary Committee in November urging the committee to take up legislation to reinstate trademark protections.

House Bill 2133 would create criminal penalties for knowingly manufacturing, selling, offering for sale or intending to sell, displaying or advertising, distributing or transporting any item or services bearing or indentified by a counterfeit mark for the purposes of commercial advantage or financial gain.

Shapiro represents the 153rd Legislative District in Montgomery County. For more information, visit www.pahouse.com/Shapiro.

Shapiro on Trademark Counterfeiting

Thu, 04 Feb 2010 00:00:00 +1300

$35K In Fake Good Seized

Tue, 02 Feb 2010 00:00:00 +1300

Men arrested for selling bogus goods

Tue, 26 Jan 2010 00:00:00 +1300

DEPTFORD TWP. — Three Gloucester County men were arrested Tuesday for pushing counterfeit goods that included professional sports team apparel and boots popular with women across the country.

Police here executed a search warrant on Stellato Boys Produce and Deli in the 1110 block of Mantua Pike around 8 a.m.

There they took into custody Americo Stellato, Jr., 38, of Turnersville, Pelligrino Stellato, 33, of Williamstown and Giuseppe Stellato, 32, of Mullica Hill for violating the New Jersey Trademark Counterfeit Act.

Detective Sgt. George Johnson said there were 165 bogus NFL, MLB and NHL jerseys with a total retail value in excess of $18,000 seized at the site. There were also 127 pairs of counterfeit UGGS boots that carry a retail value of nearly $17,800.

The total retail value of the items is just shy of $36,000.

The three were charged with knowingly possessing or offer for sale counterfeit merchandise. “They were selling it directly out of the store,” Johnson said. “They were selling to anyone who walked in.”

On Jan. 14, Deptford Police were notified by a private detective out of Norristown, Pennsylvania that the fake goods were being sold out of the Stellato Boys Produce and Deli.

They included fake Philadelphia Eagles jerseys.

“We took over the investigation and we went in there and made some purchases and later determined that they goods were not authentic,” Johnson said.

Bail for the three was set at $5,000 by Judge Nicholas Lacovara. They were released after posting bail.

Assisting in the search warrant and investigation were the Gloucester County Prosecutor’s Office, Berlin Twp. Police and U.S. Immigration and Customs Enforcement.

Terrorism Arrests began at Mall

Mon, 25 Jan 2010 00:00:00 +1300

DEPTFORD - Moussa Ali Hamdan drove a flashy SUV into the Deptford Mall parking lot for the lunchtime meeting.

Authorities say that he was there to buy stolen goods, and that he told the seller he wanted bulk quantities of prepaid cell phones, laptops, Sony PlayStations - even cars. Anything that was available.

Hamdan didn't know it, but he was negotiating with an FBI informant on that winter day in 2007. Authorities could have arrested him then, but they suspected Hamdan was a central figure in a terrorist cell in the United States.

The investigation eventually would include dozens of national-security advisers from many federal agencies and stretch from Hamdan's West Collingswood apartment and Cinnaminson workplace to the crowded streets of Beirut, Lebanon. President Obama and then-Gov. Jon S. Corzine were briefed on the case.

Late last year, the investigation led to the indictment of 26 alleged Hezbollah operatives and sympathizers. Sixteen people were arrested, including a Hezbollah weapons-procurement officer. Hamdan escaped to his native Lebanon. Two defendants are scheduled to appear in court tomorrow.

"These cases show the breadth of criminal activity engaged by those who oppose us," U.S. Attorney Michael L. Levy said in a statement.

A review of Hamdan's activity in New Jersey, nearly a hundred pages of indictments, and conversations with intelligence-community sources with knowledge of the investigation offer a detailed look into what authorities say were the alleged terrorist organization's U.S. fund-raising and weapons-buying operations.

"The indictments are very significant," said Matthew Levitt, a terrorism expert at the Washington Institute. "Hezbollah has long had financial-support networks inside the U.S., but seeing it laid out in the details of this indictment is nonetheless startling."

The investigation began with a 911 call. In April 2006, Philadelphia police received a call from the 1300 block of Magee Avenue in the Northeast. A group of men who appeared to be Middle Eastern were loading carpet into white work vans with Michigan tags. It was late, and the men were acting suspiciously, the caller said.

Members of the Philadelphia Joint Terrorism Task Force, led by New Jersey State Police Detective Frederick Fife, conducted surveillance and database checks on the men and determined that they had ties to Hezbollah.

Fife, a nine-year veteran of the state police, joined the JTTF in 2005. He could not comment on the pending case.

Hamdan was one of the men loading carpet that night. In his mid-30s, he was born in South Lebanon and became a naturalized U.S. citizen around 2005, when he married an American woman who had been arrested during a Charlotte, N.C., investigation into a multimillion-dollar Hezbollah cigarette-smuggling ring. Hamdan lived in Dearborn, Mich., before moving to New Jersey.

When he appeared on their radar, JTTF investigators tracked him to a $600-a-month efficiency at the Creswood Apartments in West Collingswood.

Records show the apartment was rented from 2003 to 2007 by Mohammed El-Najjar, the brother of one of Hamdan's codefendants, Hamze El-Najjar. Neighbors did not recall the men. The maintenance man recognized a photo of Hamdan but could remember little else. The building manager remembered dealing with Mohammed El-Najjar.

"He had A-1 credit, really A-1 credit," she said. "He paid his rent on time, and I think he even cleaned the apartment when he moved out."

She thought she recognized Hamdan's photo, but could not place his name.

"One person rented the apartment," she said, "Others could've came and went without my knowledge."

During these years, Hamdan installed carpet as an independent contractor with Empire Carpet in Cinnaminson. "Diligent background checks are done upon hiring," said Marlo Michalek, a company spokeswoman.

Hamdan and Hamze El-Najjar also operated a low-end car dealership, MAH Auto, out of a ramshackle building on Route 130. According to the indictment, the men were smuggling cars to Africa and Lebanon. The business now has a Bridgeton address. Investigators found that office empty, with a disconnected phone line.

El-Najjar's auto dealer's license expired in March, said Mike Horan, a spokesman for the New Jersey Motor Vehicle Commission.

Authorities said Hamdan proved to be the pivotal figure they had been counting on.

In the months after their initial meeting at the Deptford Mall, Hamdan met with the FBI informant more than a dozen times, buying almost $154,000 worth of what he believed to be stolen electronics and cars, authorities said. He also bought thousands of counterfeit Nike sneakers and Mitchell & Ness sports jerseys, they said. Sometimes the men met in the mall parking lot, other times at the Manheim Auto Auction in Mansfield Township.

Hamdan was reselling some of the merchandise for personal profit, but also smuggling some of it into a worldwide Hezbollah black market, authorities said. Unable to resell the electronics here because of tracking numbers, the indictment said, Hamdan and his codefendants exported them to Lebanon and Margarita Island, Venezuela.

They allegedly made a good profit, pulling in about $12,000 just by flipping 300 PlayStations.

Stolen and counterfeit goods have become a "financial foothold" for terrorist groups, said Stuart Drobny of Stumar Investigations, a Pennsylvania anticounterfeiting firm. Nikes draw less attention than drugs, he said.

The JTTF's investigation turned international when, authorities said, Hamdan introduced the informant to Dib Harb, a well-connected Hezbollah operative. Harb allegedly told the informant how operatives in Iran worked 18 hours a day producing high-quality counterfeit U.S. currency for Hezbollah. The informant was provided with a sample $100 bill.

To close the deal, Hamdan, Harb, and the informant traveled to South Florida to meet with the informant's boss - an undercover FBI agent, authorities said. The men dined in posh waterfront restaurants and hashed out a deal for $1 million in counterfeit cash and fake British and Canadian passports. The first installment of the cash - about $10,000 - was mailed to Philadelphia hidden inside a photo album, the indictment said.

Last June, the FBI informant was escorted to a clandestine meeting with Hassan Hodroj, a member of Hezbollah's political bureau, in a crowded swath of Beirut known as the Dahiya.

According to the indictment, Hodroj wanted 1,200 Colt M-4 fully automatic machine guns, the model used by U.S. special forces. Hezbollah would pay $1,800 per gun. The guns were to be shipped to the port of Latakia in Syria.

The investigation ended in November in a sweep of arrests from Philadelphia to Michigan. The biggest catch was Dani Tarraf, the Hezbollah weapons-procurement officer arrested in Philadelphia, who allegedly gave an undercover agent a $20,000 down payment for Stinger antiaircraft missiles and assault weapons.

Hamdan moved to Brooklyn, N.Y., then left for Lebanon shortly before the arrests.

Fife, the New Jersey State Police detective in charge of the investigation, and other JTTF agents are still working the case.

"He never thought his career as a New Jersey state trooper would take him to a half-dozen countries in pursuit of an investigation," said Sgt. Stephen Jones, a State Police spokesman. "We're proud of the work he has done."

Counterfeit Perfume at Farm Market

Thu, 31 Dec 2009 00:00:00 +1300

LEESPORT - Two men were arrested Wednesday after Northern Berks Regional police raided a stand in the Leesport Farmers Market that was peddling counterfeit cologne and perfume, investigators said.

The raid at the Ontelaunee Township market culminated a two-week investigation conducted by private detectives on behalf of the product manufacturers, authorities said.

Gerson R. Cotacachi, 29, Brooklyn, N.Y., and Jorge Ramirez-Ballinas, 33, Penns Grove, N.J., who also is known as Miguel A. Garcia-Betanez, were charged with theft by deception and deceptive and fraudulent business practices.

They were committed to Berks County Prison in lieu of $20,000 bail each after arraignment before District Judge Thomas H. Xavios in Reading Central Court.

Private investigator Stuart Drobny of Stumar Investigations, Norristown, said he contacted Northern Berks police after he and other detectives made undercover purchases of cologne.

He said the cheap cologne was packaged in bottles and boxes with fake labels of more expensive brands, such as Calvin Klein, Marc Jacobs, Prada and Vera Wang.

Police said James Duggan of Coty Inc., the New York-based licensee for a number of the designer label perfumes, examined perfumes from the stand and verified they were all counterfeit.

Drobny said information provided by his clients indicated that the Leesport market was one of the sites where counterfeit perfume and cologne were sold.

"This time of year it's very prevalent to counterfeit cologne," Drobny said.

According to the Washington-based International Anticounterfeiting Coalition, sales of counterfeit merchandise cost U.S. businesses between $200 billion and $250 billion annually.

Since 1982, the global trade in illegitimate goods has increased from $5.5 billion to an estimated $600 billion annually, the organization said.

Raids Target Counterfeit Goods

Fri, 18 Dec 2009 00:00:00 +1300

DALLAS — When federal and sheriff's investigators showed up with a search warrant at Bargain Corner Jean Store here, they found about $130,000 worth of fake True Religion, Ed Hardy, Affliction and other high-end jeans, T-shirts and sneakers. They hauled out 1,500 items in 40 trash bags and 18 boxes from the store, the owner's minivan and employees' cars.

Not everything was counterfeit, investigators said. Mixed in were some pairs of legitimate Levi's and Wrangler jeans. But federal agents acted after being tipped off by one of the affected brands.

Counterfeiting "is a multibillion-dollar industry, a global crime and a serious threat," says Marcy Forman, director of Immigration and Customs Enforcement's (ICE) National Intellectual Property Rights Coordination Center in Arlington, Va.

Apparel-related counterfeiting doesn't get the same attention as counterfeit toothpaste, batteries or Christmas lights because no one dies or gets physically hurt from knockoffs of pricey jeans, purses and belts. But arguments that the phony products are made without safety standards — often using child labor and sold by people connected to terrorist activity or organized crime — are starting to gain traction.

So, just as the stores and websites that sell knockoff designer clothes and accessories were gearing up for their holiday rush, so too were the investigators and agents. Raids, including the one here coordinated by ICE officials, hit 41 stores, flea markets and warehouses in the U.S. and Mexico for six days beginning Dec. 8, confiscating $26 million in counterfeit goods, ranging from fake fashions to pharmaceuticals.

In fiscal 2009, nearly 80% of counterfeit goods seized came from China. Shoes — such as the bogus Nike sneakers with rock-hard soles on display at the government's IPR Center — were the biggest category, making up 38% of merchandise seized.

While most consumers either ignore or exacerbate the problem by buying phony goods, companies are getting more cooperation than ever from state and federal law enforcement. The businesses selling counterfeit goods often don't pay sales taxes, so they're a popular target for local jurisdictions.

Last week, New York City Mayor Michael Bloomberg's Office of Special Enforcement closed 31 stores on Canal Street in Chinatown for selling counterfeit designer goods.

Terrorist links?

Late last month, the FBI arrested 13 members of a crime ring, including an alleged arms trader who an FBI affidavit said "conspired to acquire a missile system designed to shoot down aircraft." Along with purportedly stolen cellphones and Sony PlayStations, the FBI says the ring bought counterfeit Nike sneakers from an undercover agent to fund terrorism.

"In this particular case, we see Hezbollah, a known, identified terror organization … utilizing counterfeit merchandise as a new way to fund their activities," says Stuart Drobny, president of Stumar Investigations, which assisted the FBI with the case and has done anti-counterfeiting work for clients including Tiffany and Nike. "If you sell drugs, you go to jail. If you sell counterfeit products, the penalties aren't as stiff, so terrorists see this as an easy way to make money."

Luxury-goods makers are hoping that educating consumers about the true costs of counterfeiting will cut down on demand.

"When a person buys a counterfeit, they're actually supporting organized crime," says Brian Brokate, general counsel of Rolex Watches USA. "One of the challenges for the industry as a whole is public awareness."

ICE's Forman says there is at least a "dotted line" to terrorism, noting the "tri-border area" of Paraguay, Brazil and Argentina "has been known to house potential terrorist organizations" and is also a hotbed of counterfeiting.

Some shoppers can fall for claims that stores or websites purchased overstock from high-end department stores or brands. And some of the knockoffs look so legitimate that investigators have to look for designer-placed indicators to determine authenticity. But Rolex's Brokate says he believes only a small percentage of consumers who buy counterfeit luxury goods are duped.

Teresa Neasley of Denver used to be a willing knockoff shopper.

"I have knowingly bought counterfeit designer handbags and attended purse parties where knockoffs were being sold," says Neasley. "I knew that it was illegal, yet I didn't feel one ounce of guilt … until I read a few articles last year about the black market of counterfeit and knockoff merchandise."

Consumer costs

The challenge for luxury brands is convincing consumers that the damage is far-reaching.

"If it gets to the point where you can't trust a brand name on a product, then it's really scary," says Robert Weigel, a lawyer representing Gucci at the law firm Gibson Dunn & Crutcher.

Luxury brands have gotten complaints that the dye on their purses has come off on car seats — a sure sign of a knockoff — while Coach has gotten complaints that the customer service on websites selling its products wasn't up to par.

Some counterfeit Coach sites can seem authentic by promoting the same in-store events the real company does. Handles and zippers often quickly break on counterfeit versions of pocketbooks that can cost hundreds or more when real. Lead paint has been used on some fake designer bags, investigators say.

When Rolex's trademark appears on a shoddy-looking product that eventually breaks, consumers aren't getting their money's worth, either, says Brokate. A consumer who buys a fake Rolex for $200 "could have gone into Macy's and bought Seiko or Casio or some other brand watch in that price range" with some assurance of quality, Brokate says.

Tired of watching their brands become synonymous with counterfeiting, manufacturers are stepping up their trademark enforcement.

Gucci is suing Woodforest National Bank in Texas for processing credit cards for counterfeiters. Tiffany is appealing a counterfeiting case it lost against eBay, which claimed it was the jeweler's, not the auction site's, responsibility to weed out fakes. And LVMH, parent company of brands including Louis Vuitton and Fendi, is suing Internet service provider Akanoc Solutions, alleging it knowingly allowed online counterfeiting. Coach alone has filed 100 lawsuits in the past year.

In October, it sued Target for the second time over trademark violations, this time for selling purses it says are identical to Coach's.

The brands also often raid businesses with U.S. law enforcement each year.

"The whole idea is to create a general deterrent," says Coach general counsel Todd Kahn. While "you can't stop all counterfeiting," the company hopes to convince criminals that "if you counterfeit Coach, it's an expensive proposition."

Late last month, Michelle Bunfill of Granite Bay, Calif., was sentenced to 36 months probation and 10 months of home detention after pleading guilty to selling fake Chanel, Dolce & Gabbana and other counterfeit purses and accessories at purse parties and "recruiting others" to sell them at their own parties, according to Assistant U.S. Attorney Robin Taylor. From June 2006 to August 2007, Bunfill's gross sales were $184,046.

Handbags! Handbags!

Like the high-end designers they copy, counterfeiters have their favorite hubs of commerce, typically Harry Hines Boulevard in Dallas, Miami, Los Angeles and New York City's Canal Street. Canal Street became such a haven for knockoffs that it was a regular stop on many tour bus routes. Out-of-state tourists have often been seen walking the streets with black trash bags filled with purses that investigators say are brought home and sold at purse parties.

Police and the brands have cracked down so much in this area that it can be difficult to even find a store openly selling knockoffs. When a USA TODAY reporter visited recently, hooded men often stood shoulder to shoulder on the sidewalks whispering "handbags, handbags" to passersby, waiting for a hint of interest.

The big chill on Canal Street counterfeiting started in February of last year when city officials shut down 31 stores in Chinatown for counterfeiting offenses. A three-story "mall" that took up a city block still sits empty.

But counterfeiting continues.

Bargain Corner owner Haim Akiva "wasn't surprised" when law enforcement showed up, said Michael Dusenberry, an ICE group supervisor who was on the Dallas raid. Nancy Kratzer, the deputy special agent in charge of the Dallas ICE office, says having inventory seized is often viewed as "a cost of doing business" in counterfeiting, much as it is for drug dealers.

But Akiva may have a tougher fight ahead. Dallas sheriff's investigator Raul Reyna says the convicted felon, on probation since 2006 for selling counterfeit designer clothing and sneakers, had guns in his top drawer and enough counterfeit merchandise to constitute a second-degree felony. Akiva, 71, could face up to 20 years in prison if convicted. He could not be reached for comment.

Neasley, the former knockoff shopper, says she knows quality now.

"For some, it may be hard to understand saving (up) for a handbag, but obviously they haven't touched or seen a Gucci or Prada," says Neasley. "If I choose to spend a small fortune of my hard-earned money on a handbag, I will, and it definitely will not be a fake."

Raids Net 'Designer' Merchandise

Sat, 03 Oct 2009 00:00:00 +1300

PHILADELPHIA — Police raided four South Street stores yesterday afternoon, seizing hundreds of purses and other merchandise that authorities said was being sold with counterfeit designer labels.

The raids were prompted by a two-month undercover investigation conducted by a private company. Authorities said the action exposed the "brazen" selling of counterfeit goods along one of the city's main shopping drags.

Philadelphia Police Capt. Mark Everitt of the Major Crimes Unit declined to estimate the value of what was seized but said most of the items were purses. Other products included clothes and accessories such as sneakers, wallets, and jewelry.

Three of the stores are in the 600 block of South Street: Lucky Store, One Harvest Handbag, and South Street New Discovers Handbag/Discount Bags. The other, V.V. Gift Shop, is in the 800 block. Two have been temporarily closed by the Department of Licenses and Inspections.

Charged in the raids were Liu Xin, 32, of Voorhees; Yi Li, 43, of the 6600 block of North Fifth Street; and Ping Zhenh, 45, of the 900 block of Arch Street. They face counts of trademark counterfeiting and deceptive business practices.

The raids were organized at the behest of Stumar Investigations, which was hired by a group of high-end brands, including Louis Vuitton, Coach, and Chanel.

Over the last two months, Stumar sent undercover agents into the stores to make purchases, said Stuart Drobny, president of the company. The items sold for significantly less than the genuine items cost, and the company determined they were phony.

Drobny said at least $500,000 in counterfeit merchandise was confiscated yesterday.

Retail selling of counterfeit designer items is a well-known phenomenon along the East Coast, Drobny said, and it is common for port cities to receive shipments of counterfeit goods made in China, Eastern Europe, or Mexico. But he said this investigation suggested that in Philadelphia, the trend is becoming more organized.

Rather than selling the items piecemeal, such as at street fairs, stores were opened to showcase them. At least one of the stores appeared to carry nothing but counterfeit merchandise, Drobny said.

"We've never seen this before in Philadelphia," he said. "These are large stores, nice retail spaces."

http://www.philly.com/philly/news/local/63382157.html

Counterfeit Busts on South Street

Tue, 10 Feb 2009 00:00:00 +1300

PHILADELPHIA — Philadelphia Police arrested three shop owners because they say the stores were selling counterfeit merchandise.

A heavy police presence was visible on South Street for hours Friday mostly on the 600 and 800 blocks, where the four stores are located.

Police carried out bags of fake goods – mostly handbags, but also jewelry and clothes.

Investigators say they found fake Louis Vuitton, Dooney and Bourke, Coach, Chanel, Ed Hardy and Versace items.

Police say the stores were not even trying to hide what they were doing.

"As you can plainly see, all the items are in the window that anybody can see walking by," said Philadelphia Police Captain Mark Everitt, head of the Major Crimes division.

"This is a new phenomenon [in Philadelphia], large venues and retail stores" selling counterfeit goods, said Stuart Drobny, a private investigator hired by Dooney and Bourke.

He was brought in after the company heard reports that a lot of knock-off bags were for sale on South Street.

Drobny purchased some bags for testing, and once they were determined to be counterfeit, he contacted police.

Before now, Drobny says counterfeit designer products were found mostly on street corners or in flea markets.

"This is more of a New York phenomenon that is now moving in," he said.

The three shop owners arrested are facing fraud, counterfeit, forgery and conspiracy charges – all felonies. Police shut down the stores and say their investigation is continuing.

The four stores raided are: Lucky Stone at 613 South St., Number One Harvest Handbags at 625 South St., Discovers Handbags at 643 South St. and VV Jewelry and Beauty Supply at 814 South St.

http://cbs3.com/local/South.Street.Philadelphia.2.1224575.html

Controlling Your Sleuth

Fri, 19 Sep 2008 00:00:00 +1200

Store sold fake Nike sneakers

Wed, 19 Mar 2008 00:00:00 +1300

SOUDERTON - Authorities say there's a good reason why Street Wear in downtown Souderton sells brand name sneakers at bargain prices: They're fake.

The store's owner -- Justin C. Coale, 28, -- was charged Tuesday with selling counterfeit Nike sneakers after Souderton police seized more than $10,000 worth of allegedly fake merchandise from his shop at 145 Main St.

The arrest was part of Nike's ongoing nationwide crackdown on counterfeiters, according to Bob Sander, an assistant district attorney for Montgomery County, who is prosecuting the case.

2 Sentenced for Trafficking Goods

Wed, 14 Jul 2010 00:00:00 +1200