Department of Homeland Security agents seized more than $6 million (euro4.55 million) worth of foreign-made fake clothing and shoes smuggled into the United States and sold under famous labels including Nike, Sean Jean and Lacoste, authorities reported on Thursday.Four people were arrested as members of a counterfeit ring that stretched from New Jersey and New York to Texas, according to a federal complaint filed by U.S. Attorney Michael J. Garcia.
The apparel industry "is increasingly threatened by counterfeiters who sell fake trademarked goods to sometimes unwitting customers," Garcia said in a statement.
Jeans that might otherwise cost, say, $300 (euro227) were going for $60 (euro45) to $90 (euro68). They were designed and made of materials similar to the originals and sold on the street or from storefronts. The trademarks on the goods also included Route 66, Baby Phat, Pepe and Rocawear.
The case was a joint effort between federal prosecutors and Homeland Security's Immigration and Customs Enforcement unit.
Martin D. Ficke, a special agent with ICE, said he expected millions of dollars more in counterfeit goods to surface.
"This is a major organization, which had the ability to counterfeit products of great value," Ficke told The Associated Press. "They were trying to flood the market as we go into the holidays."
According to the criminal complaint, the merchandise was produced in countries including Pakistan and China and smuggled into the United States through two New Jersey ports and John F. Kennedy International Airport.
For about four years, the smuggling was run by a Pakistani citizen from Old Bridge, New Jersey, an American citizen living in New York, a Canadian in Rahway, New Jersey, and an American from Sugarland, Texas, prosecutors said.
All four were charged with trafficking in counterfeit goods. Two also face charges of paying bribes to procure the smuggled goods without inspection.
Since the undercover probe began in May 2005, Garcia said, ring members gave an undercover federal agent more than $140,000 (euro106,125) to try to bribe customs officials to release goods without inspection.
As a result of the ongoing probe, authorities have conducted 66 seizures. Agents executed search warrants at warehouses and offices in New Jersey, Manhattan and Houston.
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