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U.S. police bust counterfeit Nike shoe smugglers
Reuters ^ | 9-5-06

Posted on 09/05/2006 4:31:57 PM PDT by Cagey

PHOENIX, Sept 5 (Reuters) - U.S. police have seized thousands of pairs of fake Nike sneakers and charged six men in connection with one of the largest busts of counterfeit goods in recent U.S. history, authorities said on Tuesday.

U.S. Immigration and Customs Enforcement agents told a news conference in Tucson, Arizona, the ring imported 135,000 pairs of knock-off Nike Air Jordan shoes from China with a retail value of $16 million, between May and July of this year.

The conspirators packed the shoes into 15 shipping containers and attempted to bring them into the United States while creating a false paper trail indicating they had in fact been reexported to Mexico, investigators said.

"This case represents one of the most significant investigations into counterfeit goods in recent U.S. history," ICE special agent Roberto Medina said. It "is a victory for both consumers and legitimate businesses." he added.

The defendants, two U.S. citizens and four of unspecified nationality, were arraigned in Arizona last month on charges including bribery of a public official and conspiracy to traffic in counterfeit goods.

Three defendants are being held in federal jail, while two have been released on bail and a sixth remains on the run.

Nike Inc. (NKE.N: Quote, Profile, Research), the world's top athletic shoemaker, is among hundreds of manufacturers of high-end consumer goods whose brands are knocked off by counterfeiters in an illicit global trade valued at $650 billion a year.

The investigation, which also involved U.S. Customs and Border Protection agents, tracked shipping containers to ports in Long Beach, California, and to land crossings at Nogales, Arizona, and Laredo, Texas.

As part of an ongoing investigation, CBP officers said they are inspecting a further 62 oceangoing containers at ports of entry in California and Texas.


TOPICS: Business/Economy; News/Current Events; US: Arizona
KEYWORDS:
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1 posted on 09/05/2006 4:31:58 PM PDT by Cagey
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To: Cagey

china most favored trade nation status? nice


2 posted on 09/05/2006 4:34:00 PM PDT by pipecorp ( muhammed .....................8(_o_)8 .................p b & j mercy is wasted on the merciless.)
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To: Cagey
"two U.S. citizens and four of unspecified nationality"

What am I missing here? U.S. citizens with "no nationality"?

WTF?

3 posted on 09/05/2006 4:34:14 PM PDT by traditional1
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To: traditional1

oops....never mind....I mis-read the sentence....time to get the med's..


4 posted on 09/05/2006 4:35:13 PM PDT by traditional1
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To: Cagey

Awwww... My how brave of them. They captured some tennis shoes but let in all the illegal invaders?


5 posted on 09/05/2006 4:39:36 PM PDT by TimesDomain (When a judge declares himself "MASTER", you become his "SLAVE")
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To: Cagey

Ewwwwww, approximately 70 shipping containers of counterfeit junk that doesnt get paid for has to bite somebody,,,Someone in the Vivachinko connection is gonna have his head roll.


6 posted on 09/05/2006 4:41:23 PM PDT by Concho (IRS--Americas real terrorist organization.)
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To: traditional1
Maybe they'll specify it at a more convenient time.
7 posted on 09/05/2006 4:41:23 PM PDT by Cagey
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To: Cagey

Pretty much every Tommy Bahama shirt on eBay is a fake, as far as I can tell.


8 posted on 09/05/2006 4:49:05 PM PDT by John Jorsett (scam never sleeps)
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To: Cagey

Question - how do you tell counterfeit Nike shoes from the "real deal"? Many Nikes and Reeboks are manufactured in China anyway. Thus the fact that they are made in China isn't a giveaway.

Heck - it wouldn't surprise me if these were even made in the same factory as the "real" shoes....


9 posted on 09/05/2006 5:14:39 PM PDT by TheBattman (I've got TWO QUESTIONS for you....)
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To: TheBattman
Question - how do you tell counterfeit Nike shoes from the "real deal"? Many Nikes and Reeboks are manufactured in China anyway. Thus the fact that they are made in China isn't a giveaway.

Real Nikes typically have some leather trim. Fake Nikes use all-vinyl trim. How do I know? I see 'em in China all the time, and marvel that they sell 'em for American prices - $70 to $100. That's a half a month's salary for the average shoe factory employee.
10 posted on 09/05/2006 5:49:12 PM PDT by Zhang Fei
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To: Cagey

I wonder if this was another Hezbollah operation. They're big on counterfeiting.


11 posted on 09/05/2006 6:42:12 PM PDT by MizSterious (Anonymous sources often means "the voices in my head told me.")
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To: John Jorsett
Pretty much every Tommy Bahama shirt on eBay is a fake, as far as I can tell.

How can you tell?

12 posted on 09/05/2006 7:23:51 PM PDT by NoCurrentFreeperByThatName
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To: John Jorsett

the real ones are made in china - $125 each, and the quality stinks.


13 posted on 09/05/2006 7:27:01 PM PDT by oceanview
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To: TheBattman
Heck - it wouldn't surprise me if these were even made in the same factory as the "real" shoes....

That's zakly what happens, I was told by my Hong kong friends. A factory gets an order, materials to fill it, fills the order, then continues manufacturing using leftover materials or equivalent stuff it ordered on its own. Voila, Nike shoes, no different from the real "scientifically designed" thing.

14 posted on 09/05/2006 7:28:45 PM PDT by Revolting cat! (c)
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To: oceanview

Isn't it amazing that people are willing to pay high prices just for a brand name which in itself means nothing?It would be different if the high priced goods were actually that much better. As for me ,no name athletc shoes at one-tenth the price suffice,AND they;re made in China,too!


15 posted on 09/05/2006 7:33:02 PM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a creditcard?)
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To: hoosierham

if I'm going to pay $125 for a shirt, it had better be made in the US or in Italy.


16 posted on 09/05/2006 7:34:07 PM PDT by oceanview
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To: oceanview

I can't conceive of $126 shirt on my income;maybe the whole suit.


17 posted on 09/05/2006 7:37:26 PM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a creditcard?)
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To: Zhang Fei

Then Academy Sports must sell counterfeit Nike products, as they carry several shoes that are marked as Nike, come in Nike boxes, and are 100% vinyl.


18 posted on 09/05/2006 8:59:57 PM PDT by TheBattman (I've got TWO QUESTIONS for you....)
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To: TheBattman
Then Academy Sports must sell counterfeit Nike products, as they carry several shoes that are marked as Nike, come in Nike boxes, and are 100% vinyl.

Maybe vinyl is the new trend. This is just amazing - they reduce the quality of the materials and mark up the price. What a racket.
19 posted on 09/06/2006 1:14:17 AM PDT by Zhang Fei
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To: NoCurrentFreeperByThatName
How can you tell?

One big clue is that the patterns don't line up when the shirt is buttoned. There are also patterns that Tommy Bahama never made. And, the prices are just too low. They make claims like "overstock", "got from business liquidiation", etc., but if you look back in the seller's history, they seem to have an infinite supply, having sold identical items hundreds of times.

20 posted on 09/06/2006 8:40:46 AM PDT by John Jorsett (scam never sleeps)
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