Counterfeit Smuggling Ring Busted In N.Y.

Wide-Reaching Plot To Flood Market With Bogus Nikes, Coach Bags And Electronics Made In China

(CBS/AP)  Private brokers licensed by the government to clear commercial imports participated in a scheme to flood the U.S. market with fake Nike sneakers, Rolex watches and other Chinese-made counterfeit products, authorities said Tuesday.

The busts follow a 19-month investigation which used undercover agents, confidential informants, and secret recordings to crack what the government calls a sweeping conspiracy, reports CBS News correspondent Bob Orr.

The brokers were named in criminal complaints charging 29 people with conspiring to smuggle more than 950 shipments of high-quality knockoffs through New York City, Long Beach, Calif., Texas and other ports of entry. In New York, the items were hidden in warehouses in Brooklyn and Queens before being sold to tourists in Chinatown and other parts of Manhattan.

The goods — including fake Ray-Ban sunglasses, Coach, Prada, Louis Vuitton, Gucci, and Fendi handbags and North Face jackets — would have been worth about $700 million if authentic. Authorities say such schemes divert income from legitimate manufacturers while cheating the government out of tax revenue.

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Photos: Check Out Some Of The Confiscated Items

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Also seized were phony Timberland boots, Motorola and Sony electronics, and Seven Jeans.

Federal agents picked up most of the suspects Tuesday morning at their homes — including some multimillion-dollar houses on Long Island.

The suspects were to be arraigned in federal court in Brooklyn.

Officials said it was one of the largest plots in recent history involving corrupt customs brokers. The government licenses the brokers to inspect paperwork provided by importers and to clear merchandise for delivery to wholesalers.

The brokers "were deeply involved and engaged in these activities," said Kevin Delli-Colli, acting head of the Immigration and Customs Enforcement New York office.

Also charged were shippers and warehouse owners. When customs agents arrived for an inspection at one warehouse, the manager concealed the counterfeit goods by substituting them with legitimate merchandise, court papers said.

Officials say the suspects used bogus paperwork and payoffs to evade customs. Large containers were falsely labeled. For example, one container said to contain "plastic toy cars" actually held nearly 55,000 counterfeit watches and over 1000 fake purses, reports Orr.

Some shipments arrived in California with paperwork saying they were destined for Mexico. Instead, they were secretly diverted to a warehouse in Laredo, Texas, the documents said.

Four defendants charged with money laundering face up to 20 years in prison if convicted. The rest face up to five years if convicted of conspiracy.

[gunnerv1]

BloggerRadio- And just what news outlet is approved by the extream left? NPR? Don't make me puke. I work for a Big 10 University, I listen to No ******** Radio whenever I need a laugh in the morning.

[BloggerRadio]

Wow, check it out, "aznyron" is quoting "Hannity & Combs" and faux news as sourcing for stats on illegal immigration. Aznyron, you have gotta be one of those children that Bush left behind; neither Sean Insanity nor his punching bag straight man Combs are capable of locating their own rump cheeks using their own two hands, much less be counted upon to do statistical analysis of anything, and get it right. I propose this solution to the immigration problem: rather than deport all illegal immigrants, we work out a TRADE instead. We keep the hard working immigrants, and in trade, we send all our useless, right-wing-nut Insanity supporters to Mexico in a straight-across trade.

[aznyron-2009]

they are very good at find illegal mechandice how about them looking for illegal aliens they steal more from our economy then these drug store gangsters 25% of all people in jail are illegal immigrants so it was reported on Hannity & Combs (fox news)and they commit violent crimes these drug store gangster only ripped off the big corp and the tax man and now they have a law called conspiracy what a joke

[rushlimpdrug]

Guess I'll be cancelling the Chinatown trip now.

[chinesespy]

I have some ipod knockoffs for 52.00$$ please email me at [e-mail] if interested