Three Indicted in One of Largest Counterfeit Prosecutions in History (Counterfeit Handbags, Wallets, Etc. from China)
The Justice Department has issued a press release announcing that a federal court in Richmond, Virginia has unsealed an indictment of three defendants involved in one of the largest ever counterfeit luxury goods operations in the U.S.
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In October 2007, a federal grand jury returned a seven-count indictment charging Chong Lam, President of Global Import Inc.1; Siu Yung Chan (aka Joyce Chan), manager of Global Import Inc.; and Eric Yuen, employee of Lam and Chan; (the defendants) all of New York, with conspiracy to traffic in counterfeit goods imported from China; trafficking in counterfeit handbags, purses, wallets, and carry-on bags; and illegally smuggling counterfeit goods into the U.S. In January 2008, the indictment was unsealed and Immigration and Customs Enforcement (ICE) agents arrested the defendants.
From in or around August 2002 to in or around November 2005, the defendants allegedly imported the counterfeit luxury goods into U.S. various ports, with U.S. Customs and Border Patrol officers seizing numerous containers of the goods.
Defendants Engaged in a Corporate Shell Game, "Port Shopping"
According to the indictment, the defendants, and their fellow conspirators operated an international import and wholesale counterfeit goods business. The defendants, by and through the co-conspirators1, intentionally imported, or attempted to import, purses, handbags, wallets, and carry-on bags knowing that they bore counterfeit marks.
The defendants allegedly engaged in a corporate shell game whereby they would import the counterfeit luxury goods in the name of different corporations using different names, especially if CBP authorities in a U.S. port identified one of their corporations as an importer of counterfeit luxury goods. In addition, the defendants would engage in "port shopping."
Value of the Corresponding Goods Estimated to be Over $100 Million
The value of the corresponding authentic luxury goods manufactured by Burberry, Louis Vuitton, Kate Spade, Fendi, Gucci, Coach, etc., whose legitimate sales were displaced, is estimated to be over $100 million. Using very conservative sales prices for the infringing counterfeit items, investigators estimate that the defendants received $16 million in illicit proceeds.
1The defendants did business using the following alter-ego corporate names, which are listed as co-conspirators in the indictment, Global Import, Inc.; Marco Leather Goods, Ltd.; Marco USA Inc.; The Perfect Impressions, Inc.; LY (USA), Inc.; CP (USA) Inc.; and Coco USA.
(See ITT's Online Archives or 07/09/07 news, 07070910, for BP summary of 29 defendants (including merchandise distributors, brokers, forwarders, etc.) being charged with conspiracy to smuggle over 950 shipments.)
Justice Dept press release (dated 01/17/08) available at http://www.justice.gov/opa/pr/2008/January/08_crm_035.html
Indictment (dated 10/02/07) available via email by sending a request to documents@brokerpower.com