Feds bust counterfeit goods pipeline to S.F.

[alp227]

Source: San Francisco Chronicle

(08-03) 16:46 PDT SAN FRANCISCO -- Federal authorities today announced the seizure of more than 200,000 counterfeit retail items valued at $100 million in what they said was the largest-ever bust of retail counterfeiters on the West Coast.

Federal authorities raided seven stores in the touristy Fisherman's Wharf area of San Francisco, along with a number of homes and warehouses in San Francisco and San Leandro.

It was the peak of a three-year investigation by the U.S. Attorney's Office, Immigration and Customs Enforcement and Customs and Border Protection.

Eleven people were charged with conspiracy, smuggling goods into the United States, and trafficking in counterfeit goods, said U.S. Attorney Joseph Russoniello. Ten of those indicted were residents of San Francisco, he said.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/03/BACL1EODKT.DTL

[truthisfreedom]

1. 200,000 items valued at $100,0000,000? That puts the value of each item at $500.

Nike? Methinks they're exaggerating a little.

[Submariner]

2. It's more than Nike I believe

I have heard of busts in China making counterfeit designer clothing, and those Louis Vitter bags women pay hundreds for. I think fake music and video CDs/DVDs are a hot item.

[Tempest]

5. They would have to be counterfeit iPhones

Or something like that, which is possible.

They exaggerate the value of drug busts as well.

[Blue_Tires]

10. high-dollar watches, too maybe

and don't forget designer sunglasses which can also go above $500 (I got burned on those as a college student many years ago)

[Swagman]

3. counterfeit goods made by kids..as opposed to real goods made by kids

..cannot have globalisation defeated

[Frank Booth]

4. A lot of these "counterfeit" goods come from the exact same factories.

They just go out the back door instead of the front.

[Tempest]

6. It's a brilliant accounting move

You get to write off the cost of the materials as waste when in fact it's going out the back door tax and custom fees free.

[saigon68]

7. When you deal with skunks

The smell tends to remain

[cosmicone]

8. I don't see any harm in this ...

People who buy knockoffs can't afford the real thing anyway, so it isn't like the real brands are losing customers.

Plus the real brands get free advertisement.

I think this sort of a raid is driven by the rich who don't want "those poor people" have something that they only can possess.

[One_Life_To_Give]

9. Cloned Circuit Breakers, Extension Cords, etc.

There are honest Knock-offs and then there are the ones who try and pretend they are something they are not.
Extension Cords made from Tinsel wire sold with Bogus UL marks Do burst into flames when Hair Dryers and other high load appliances are plugged into them.

Granted a fraudulent Coach purse isn't likely to kill anyone. Still it's a product with a lifetime warranty. When someone else's cheap version displays their trademark and could be seen falling apart in normal use. It can harm potential sales. Nike would point to the millions in advertising spent to build up their brand. It doesn't take much to be honest and put your own brand on a knockoff. And as you say people who can't afford a $500 purse typically don't care if it sports a name brand of a big box store brand.

[Hell Hath No Fury]

11. I live here and am happy --

that tourist to my City are less likely to get ripped off during their visits here. There is a very bad history of shops in SF tourist areas committing outrageous fraud against visitors, depending often on foreigners lack of language skills/knowledge of exchange rates to bilk them. As a San Franciscan I hate that and welcome any attempt to shut such nonsense down.