Two members of one of the largest counterfeit luxury goods groups were convicted this week for their involvement in an international manufacturing import and wholesale counterfeit business. New Yorkers Chong Lam and Siu Yung Chan were found guilty of conspiracy to traffic counterfeit goods, trafficking counterfeit designer handbags, wallets, and other bag and illegally smuggling counterfeit goods.
The goods were imported from China between 2002 and 2005. According to evidence, the guilty parties controlled operations in 13 companies in the U.S. and abroad and 8 factories that produced the counterfeit goods. U.S. Customs and Border Protection confiscated container upon container of counterfeit goods imported from China. The duo had imports 300,000 knock-off goods from China, including Burberry, Louis Vuitton, Coach, Fendi and Coach, under the guise of their 13 companies.
“The defendants convicted yesterday led a massive counterfeit goods operation that stretched from China to New York," said Assistant Attorney General Breuer in a statement. "The Department of Justice will continue aggressively to prosecute intellectual property crimes and to protect business and consumers alike from those looking to cheat their way to a quick profit."
"This case is about economic identity theft and blatant disregard of the law," said U.S. Attorney MacBride in a statement. "These convictions reinforce the integrity of our nation's intellectual property laws that the Eastern District of Virginia is committed to enforcing."
"This landmark conviction represents the latest success of ICE in targeting intellectual property thieves," said John Morton, Assistant Secretary for ICE in a statement. "Through the National Intellectual Property Rights Coordination Center, ICE will continue working to stem the flow of counterfeit goods into the commerce of the United States."
The parties face five years in prison and $250,000 fine for conspiracy, 10 years and $2 million fine for trafficking and 5 years and $250,000 for smuggling.
Source: U.S. Department of Justice