Flanked by a display of what appeared to be high-end Nike athletic shoes, representatives from the Department of Justice and the Department of Homeland Security on Tuesday
announced the break up of one of the largest counterfeit merchandise smuggling schemes uncovered in recent U.S. history. Six persons, including two U.S. citizens and four foreign nationals, were indicted last month for conspiring to smuggle millions of dollars worth of phony merchandise, including Nike Air Jordan athletic shoes, from China into the United States. So far, authorities have seized more than $16 million worth of counterfeit merchandise as part of the probe, which involves U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP).
“This case represents one of the most significant investigations into counterfeit goods in recent U.S. history. Taking down an organization that sought to introduce millions of dollars worth
of counterfeit goods into our economy is a victory for both consumers and legitimate businesses,” said Roberto G. Medina, special agent in charge of U.S. Immigration and Customs Enforcements office of investigations in Arizona. “This case also demonstrates what can be achieved when ICE and CBP work together to combat a criminal enterprise.”
The U.S. Attorney for the District of Arizona Paul K. Charlton said, “One of the biggest challenges of our globalized world, which has brought many benefits as trade has expanded, is the effort by transnational criminals to steal intellectual property. “It may not be obvious, but the consequences are huge. Intellectual property is the bedrock of innovation and entrepreneurship in our society. This indictment reflects efforts to not only counterfeit goods illegally, but also to bribe officials whose job it is to protect and monitor the flow of goods across our borders.”
A magistrate released Mark Elias, 36, and Manuel Flores Jr., 53, both of El Paso, on cash bail of $50,000 and $20,000, respectively, but ordered Juan Carlos Martinez Esquer, 46, of Mexico; Wei Tung Lam, a resident of Gambia and native of China, and Sau Kuen Chan of Hong Kong held as flight risks. The sixth defendant, Peng Liu of Hong Kong, is a fugitive.
The conspirators allegedly packed the shoes into 15 shipping containers and attempted to bring them into the United States while creating a false paper trail indicating they had in fact been re-exported to Mexico, investigators said.
As part of an ongoing investigation, CBP officers said they are inspecting a further 62 oceangoing containers at ports of entry in California and Texas.
A conviction for conspiracy carries a maximum penalty of five years imprisonment, a $250,000 fine or both.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is
presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by U.S. Immigration and
Customs Enforcement (ICE) with the assistance of U.S. Customs and Border Protection (CBP).
The prosecution is being handled by Danny N. Roetzel, Assistant U.S. Attorney, District of
Arizona, Tucson.
