Four Defendants Arrested in Multi-Million Dollar Counterfeit Goods Trafficking Program | USAO-EDNY
A 14-count indictment was unsealed yesterday in federal court in Brooklyn, accusing seven defendants of participating in a counterfeiting program in which they imported generics into the United States from China , applied brand labels to these products in workshops, some of which were controlled. by the defendants and then sold these counterfeit branded products to retail and wholesale buyers. The charges against the defendants include conspiracy to smuggle and smuggle counterfeit products and money laundering. Four defendants were arraigned yesterday before US investigating judge Sanket J. Bulsara and each was released on $ 200,000 bail. Three other defendants are still at large.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent for Homeland Security Investigations, New York (HSI) and Dermot Shea, Commissioner, Police Department of New York City (NYPD) announced the arrests and indictment.
“As alleged, the defendants trafficked in counterfeit goods which they fraudulently characterized as genuine to pass to buyers in the United States with an alleged retail value of over $ 130 million,” said Acting United States Attorney Kasulis. “This office and its law enforcement partners are committed to preventing consumers from paying retail prices for fake goods and holding defendants accountable for their greed. Ms. Kasulis expressed her gratitude to the HSI Intellectual Property Group, the HSI Border Enforcement Security Working Group, and the NYPD. Ms. Kasulis also thanked US Customs and Border Protection for their help.
“HSI New York’s Border Enforcement Security Task Force is at the forefront of the fight against criminal organizations that identify weaknesses in our supply chain and infiltrate them for their personal financial gain. HSI Special Agent Fitzhugh said. “In addition to their detrimental effects on our economy, counterfeit networks like this pose a threat to our national and public security by introducing products that often contain harmful materials and substances. HSI and CBP are uniquely positioned to fight these organizations and, along with our partners in the New York City Police Department, will work tirelessly to protect New York City and the Homeland. “
As alleged in the indictment, between October 2019 and July 2021, the defendants participated in an international program of trafficking in counterfeit goods. The defendants first imported the goods in generic form from China into the port of New York and New Jersey. The goods were then delivered to workshops and storage facilities controlled by some of the defendants in Queens and Long Island. In these workshops, badges, emblems, marks and other brand symbols were applied to generic products, converting them into so-called branded goods. These counterfeit products were then sold under the program directly to consumers and wholesale buyers. The estimated retail value of counterfeit branded products, if they had been genuine, exceeded $ 130 million.
The government’s case is handled by the General Crimes Section of the Bureau. US Deputy Prosecutors Dylan A. Stern and Benjamin L. Weintraub are in charge of the prosecution. Assistant U.S. Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling the forfeiture issues in the case.
HAI LONG ZHOU (also known as “Zangkun Zhou”)
Queens, New York
Brooklyn, New York
YAN XUE HUANG (also known as “Yan Xue Zhou” and “Yan Xue Li Ming”)
Age: 50 years old
Queens, New York
JIAN FEN YANG
Queens, New York
EDNY File # 21-CR-417 (SJ)