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TUCSON - 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 announced Wednesday 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 Enforcement's 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."
On Aug. 24, three defendants of six defendants charged with conspiracy were arraigned in U.S. District Court. The six defendants were charged in an indictment returned by a federal grand jury at Tucson, on Aug. 16. The defendants are:
Mark Elias, 36, a resident of El Paso, Texas; Juan Carolos Martinez-Esquer, 46, a resident of Sonora, Mexico; Manuel Flores Jr., 53, a resident of El Paso, Texas;
Wei Tung Lam, aka "Tony" Lan Wen Jung, a resident of Gambia and a native of the People's Republic of China; Sau Kuen Chan, aka Edith Chan, a resident of Hong Kong; and Peng Liu, aka "charleyworld", a resident of Hong Kong.
The indictment alleges that between May 12 and July 25 in Nogales, Arizona and elsewhere, the defendants and others conspired to commit certain offenses against the United States, specifically, bribery of a public official and trafficking in counterfeit goods and services. The indictment alleges that defendants Elias, Martinez-Esquer, Flores, Wei Tung Lam, Sau Kuen Chan and Peng Liu, and others conspired to traffic in counterfeit goods and services, involving 15 sea cargo containers containing approximately 135,000 pairs of counterfeit Nike Air Jordan athletic shoes with a retail value of more than $16 million.
The indictment also alleges that defendants Elias, Martinez-Esquer, Flores and others attempted to bribe an undercover federal agent posing as a Customs and Border Protection (CBP) Officer to falsify government computer records to indicate that merchandise shipped from China to the United States was then re-exported to Mexico, when in fact, the merchandise was diverted into the commerce of the United States. It is further alleged that defendants Wei Tung Lam and Sau Kuen Chan also solicited an undercover federal agent posing as a customs broker employee to facilitate the release of six containers of merchandise being held by CBP in Nogales, Arizona at the direction of defendant Peng Liu.
The indictment also alleges that several of the defendants met at least eight times with the undercover agent and gave the agent $25,000 in currency as attempted bribes.
As part of the continuing investigation, an additional 62 containers have been identified -- 48 are in Long Beach, Ca; and 14 in Laredo, Texas. These are being inspected by CBP.
On Aug. 24, defendants Martinez-Esquer, Wei Tung Lam and Sau Kuen Chan were arraigned before United States Magistrate Judge Charles R. Pyle, and a trial date of Oct. 17 was set before District Court Judge Cindy K. Jorgenson. These three defendants are being held in federal custody as flight risks.
Defendants Mark Elias and Manuel Flores, Jr., are set for arraignment on Thursday, Sept. 7, having been released on $50,000 and $20,000 cash bond, respectively. Defendant Peng Liu remains a fugitive.
The federal indictment charges each defendant with conspiracy. A conviction for conspiracy carries a maximum penalty of five years imprisonment, a $250,000 fine or both. 9-06-06
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© 2006 North
Country Gazette
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