Federal Sting Nabs N.Y. Counterfeit Ring
Capping an almost 1frac12;-year investigation, federal authorities on Dec. 5 announced the arrests of 10 people in the New York and New Jersey area for the alleged smuggling and trafficking of more than $200 million in suspected counterfeit apparel and accessories bearing the labels Nike, Chanel, Baby Phat and Polo Ralph Lauren.
The U.S. Attorney’s Office said the alleged smugglers imported more than 100 cargo containers through Port Newark in Elizabeth, N.J., between June 2006 and November 2007. As part of the scheme, the defendants paid more than $500,000 in cash bribes to an undercover Immigration and Customs Enforcement agent who posed as a corrupt longshoreman’s union official who had the ability to clear imported cargo through the U.S. border, authorities said.
The ring allegedly routinely concealed the goods in containers with fraudulent bills of lading, marked under various guises such as “noodles” and other consumer products, according to the U.S. Attorney’s Office. Authorities said that once the shipment made it past customs, the goods were stored in short-term warehouses and then distributed to retailers.
If convicted, each defendant faces a maximum sentence of 34 years’ imprisonment, a maximum fine of $2.5 million or twice the gross of gain or loss from the offense as well as restitution to the brand owners.
—Robert McAllister
