Police Seize $12M in Counterfeit Goods

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The New York Sun

Police confiscated in excess of $12 million of apparel bearing fake brand names at a Garment District warehouse in what Police Commissioner Raymond Kelly called the largest counterfeit seizure in NYPD history.


On Monday night at about 6 p.m., officers from the New York Police Department’s 13th Precinct and the mayor’s Office of Midtown Enforcement entered a warehouse at 1158 Broadway with a warrant to search for counterfeit goods.


Mr. Kelly estimated yesterday that police would, by day’s end, remove five truckloads full of merchandise bearing the logos of brand names such as North Face, Sean John, RocaWear, and others.


The warehouse was home to a kind of counterfeit “mini-mall,” the 31-year-old co-owner of the nearby clothing store Sportique, Bobby Chani, said. “On Friday or Saturday, it’s a madhouse on the corner, it’s like a club with three or four hundred people waiting outside.” The black-market deals did not surprise Mr. Chani, who acknowledges that some stores in the area do sell counterfeit goods. But, Mr. Chani said, “Upstairs, in the buildings, is where everything really happens.”


Inside the four-story building at the corner of Broadway and 27th Street, 49 separate rooms, each crammed with merchandise, were arranged haphazardly around a maze of dimly lit hallways.


In one room, stacks of jeans and jackets were divided by brand, color, and size, each pile arranged neatly on several shelving units that spanned from floor to ceiling and covered every inch of wall space. Other rooms contained mannequins dressed with North Face bubble jackets and pink velveteen track suits bearing the Baby Phat logo.


Deputy Inspector Paul McCormack said the counterfeiters at this location did a brisk business selling items such as Timberland boots at half the $150 retail price and Nike Air Force One sneakers for $40.


The confiscated items, Mr. McCormack said, will most likely be incinerated after the Brooklyn Property Clerk documents them.


Monday’s raid was just the latest in a yearlong crackdown on large-scale trademark counterfeiting operations targeting fake-goods vendors and the landlords that house their operations, said police officials. Though no arrests were made during Monday’s search, police said the building will be closed for safety reasons. The city plans to seek damages from the landlord.


“If you choose to engage in this area to rent, then we’re going to take your building, we’re going to take your money, and we’re going to take you to court,” Criminal Justice Coordinator John Feinblatt said.


Over the last year, police have brought in between $40 million and $50 million worth of counterfeit goods, and have raided and closed nine other buildings, Mr. Kelly said at a press conference yesterday morning. The mayor’s initiative to combat counterfeiting has also taken in hundreds of thousands of dollars in civil settlements from building owners since its inception last year.


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