NYPD Arrests 18 in $35 Million Counterfeit Bust
The New York Police Department (NYPD) arrested 18 suspects and seized $35 million in counterfeit luxury goods on Manhattan’s Canal St. on Wednesday.
The corner of Canal St. and Broadway near Chinatown has long been a destination for consumers looking to buy handbags, sunglasses and other accessories duping designer labels like Gucci, Louis Vuitton, Chanel and YSL. “We received a tremendous amount of complaints about counterfeit goods from the community and from the business owners,” NYPD inspector William Glynn said.
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“This is an area where it’s always very condensed—you have two or three dozen sellers blocking the entrances to numerous restaurants, places of business and so forth,” police chief Timothy Baudette added. NYPD acted in response to civilian tips entered into the Community Link platform the city set up in July. The Community Link Team, the First Precinct, Patrol Borough Manhattan South and the Community Response Team all sprang into action to take the counterfeits off the street.
“Our response here tonight resulted in 18 arrests, and over three truckloads full of merchandise,” Baudette said. “We’re going to continue with the operations going forward.” NYPD will also post officers at the location to “try to prevent this setup,” he added, referring to tarps and blankets counterfeit sellers spread on sidewalks to hawk their ersatz wares.
Global counterfeiting continues to challenge the U.S. market. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI) seized 20,812 shipments that violated intellectual property rights (IPR) in 2022, amounting to nearly 25 million counterfeit products worth an estimated $2.98 billion, had they been genuine. Last year, ICE-HIS arrested 255 people in connection with the crimes, securing 192 indictments and 95 convictions for intellectual property infringements.
ICE and CBP said handbags and wallets continue to top the list of items seized. Over 31,000 products were stopped from entering the U.S. market in 2022.
Local law enforcement has seen some success seizing counterfeit stockpiles that make it past customs. In July, police in Shrewsbury, Mass. uncovered fakes worth $11.3 million, including footwear, clothing, handbags, sunglasses, hats, backpacks, cologne, phone cases, earbuds and umbrellas knocking off Gucci, Prada, Louis Vuitton, Chanel, Nike, The North Face and Rolex.
Philippines officials earlier this year intercepted more than $28 million worth of counterfeit Nike shoes. In a statement at the time, Philippines Bureau of Customs comissioner Bienvenido Rubio said, “We will continue to strengthen our efforts in combating nefarious counterfeiting activities and ensure the enforcement of intellectual property rights.”
While China remains the primary source of counterfeit goods globally, representing about 60 percent of IPR seizures by ICE and CBP, some products originate within the U.S. market. In October 2022, a Plainview, N.Y. boutique owner was arrested for producing $40 million worth of luxury counterfeits in a “sweatshop operation” run out of her storefront. Police said Gucci, Chanel, Prada, Dior, Ugg and Louis Vuitton products were counterfeited by affixing copycat labels onto apparel, accessories and jewelry.
