Counterfeit Goods Seized in L.A. Raids

Striking a blow against the lucrative counterfeit merchandise trade, federal agents raided seven sites in the Los Angeles area and arrested 10 suspects as part of a nationwide operation targeting the makers of phony goods bearing well-known labels, the U.S. Customs Service announced Wednesday.

Authorities also seized $27 million in merchandise during raids Tuesday at sites in Los Angeles, New York and New Jersey, authorities said. At least 80 suspected undocumented workers were arrested at the Los Angeles-area sites.

Counterfeit merchandise seized included handbags, wallets and other accessories bearing Chanel, Louis Vuitton, Fendi and other designer labels, along with sporting apparel with Adidas, Nike, Reebok, Starter and other well-known trademarks.

The phony Chanel handbags retailed for as little as $50, compared to up to $1,000 for the real items, said Robert A. Mintz, deputy chief of the organized crime task force with the U.S. attorney’s office in Newark, N.J.

The goods generally originated in South Korea, authorities said, and were sold from small outlets in the Los Angeles, New York and New Jersey areas. Merchandise was assembled for final distribution at three factories in Los Angeles and two in New York.

Federal indictments charged 33 principals, 10 of them based in Los Angeles, with conspiracy, trafficking in counterfeit merchandise, fraudulently importing and receiving goods and other crimes. All of the principals were described as South Korean nationals.

The raids culminated a three-year undercover investigation in which Customs agents posed as middlemen facilitating the delivery of the phony merchandise.

The operation is believed to be the first in which federal authorities have penetrated an entire counterfeit goods chain from manufacture to distribution and sale, officials said.