Chinese Counterfeiter Pleads Guilty in Prada Knockoff Case
Amazon’s Counterfeit Crimes Unit (CCU) scored another victory this week after a Chinese counterfeiter pled guilty to crimes related to the sale of fake luxury goods. The CCU partnered with Prada and other luxury brands to provide evidence to Chinese law enforcement, leading to the arrest.
The case stands as a landmark in the fight against counterfeiting as it hinged primarily based on evidence of overseas counterfeit sales records and fulfillment center records outside of China and not on seized products. In this instance, the court was able to issue its verdict based on information provided by Amazon and Prada.
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“The guilty plea is a significant win for Amazon’s CCU, but more importantly it’s a win for all of those who share our commitment to tackling the industry-wide issue of counterfeiting,” said Kebharu Smith, director of Amazon’s CCU. “This successful result would not have been possible without the collaboration with law enforcement and luxury players such as the Prada Group. We are grateful for their support and look forward to continuing to take the fight to counterfeiters.”
Amazon’s CCU first detected the defendant’s attempted counterfeiting in 2021, and then reached out to regional Chinese law enforcement to pursue a criminal case. At the hearing, the defendant was sentenced to three years in prison, will pay a $25,000 fine and forfeit all proceeds from the sale of counterfeit goods. The remaining inventory of fake items also will be seized and destroyed.
“We are firmly committed to eradicating the sale of counterfeit goods to protect our brands and to ensure that our products meet the level of quality, craftsmanship and care that people expect from us,” said Francesca Secondari, Prada Group general counsel and chief legal officer. “Through the collaboration with Amazon we are making great progress in the fight against those who attempt to break the law and to negatively impact our customers.”
The legal victory comes on the heels of two lawsuits filed by Amazon’s CCU against Kamryn, Russell, Ashley Hawat and other unnamed conspirators for attempting to sell counterfeit luxury goods via “hidden links” schemes on social media. Such schemes direct social media followers to links to seemingly generic product listings on Amazon that are actually counterfeit, usually with the incriminating logo blurred. The retailer also reached a settlement in 2021 against another group of defendants attempting similar hidden links scams.
In 2022, Amazon filed a joint lawsuit with Cartier for a similar scheme, and it also worked with Chinese authorities to seize counterfeit Puma and Hugo Boss products. Another operation in China seized counterfeit Ferragamo product. In 2021, Amazon’s efforts netted 3 million in counterfeits removed from its platform. That number doubled last year.
Luxury goods tend to be a target of counterfeiters, although U.S. Customs and Border Protection officers have intercepted shipments of fake sports merchandise, along with Converse Chuck Taylor and Nike sneakers this year. In September, the New York Police Department arrested 18 suspects and seized $35 million in counterfeit luxury goods on Manhattan’s Canal Street. And earlier this year, a Washington woman was sentenced to prison time for her counterfeiting scheme after a Long Island boutique owner was arrested in a $40 million counterfeiting case.
