ICE Charges Small S.F. Merchants with Trafficking Counterfeit China Apparel, Accessories
Immigration and Customs Enforcement announced that the owners and operators of eight shops in San Francisco's Fisherman's Wharf district and several of the stores' employees were charged in a 25-count indictment as part of the largest federal enforcement action ever taken against West Coast retailers suspected of selling counterfeit designer apparel and accessories.
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The indictment has already led to the seizure of approximately $100 million worth of counterfeit merchandise, based upon the manufacturer's suggested retail price (MSRP) had the products been legitimate. The designer fakes, which were illegally imported from China, included clothing, handbags and wallets, jewelry and watches, scarves, sunglasses and shoes bearing the labels of more than 70 well-known designer brands. Among the brands were a number of U.S.-based companies like Oakley, Dooney and Bourke, Nike, Coach and Kate Spade, and foreign designers such as Armani, Burberry, Prada and Louis Vuitton. Affidavits filed in connection with the case describe multiple instances where clerks at the targeted stores acknowledged to ICE undercover agents posing as customers that the merchandise they were buying was counterfeit. Most of the merchants and sales clerks who were indicted reside in San Francisco.
They include:
- Hui Jin Jen, aka Jenny, 41, owner of L & J Fashions and JC Trading Co.
- Jia Cun Liu, co-owner of L & J Fashions and JC Trading Co.
- De Li Chen, aka Simon, 40, worked at New CWK Gift Store
- Hui Juan Chen, aka Coco, 37, Jenny's sister and De Li Chen's wife, owner of New CWK Gift Store
- Shelley Xue Hua Lin, 39, owner of New Life Gift Store
- Ying Hei Lau, aka Sam, 57, controlled two storage units in San Leandro, Calif.
- Huamin Wu Mei, aka Pam, 54, of San Leandro, Calif., controlled access to and made rental payments on San Leandro storage units
- Kan Wen Chong, aka Kenny, 44, owner of two branches of C & K Gifts
- Xiu Jing Ye, aka Crystal, 41, Chong's wife, co-owner of two branches of C & K Gifts
- Fernando Viseu, 54; owner of two stores, including La Bella Boutique; and
- Sok Wa Chong Viseu, aka Olga, 50, Visue's wife, worked at two stores, including La Bella Boutique
The initial investigation leading to the charges began after U.S. Customs and Border Protection (CBP) officers intercepted a container at the Port of Oakland in December 2007 that contained more than 50,000 counterfeit designer accessories with a total value of more than $22 million, based upon the MSRP. The consignee on the shipment was C & K Gifts.
The charges are part of a larger department-wide effort led by the Department of Justice's Intellectual Property Task Force (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S.