July 1, 2008

ICE INTELLECTUAL PROPERTY RIGHTS INVESTIGATIONS

ICE, the largest investigative arm of the Department of Homeland Security (DHS), plays a leading role in investigating the production, smuggling and distribution of counterfeit products. ICE investigations into these intellectual property rights (IPR) violations focus not only on keeping counterfeit products off U.S. streets, but also on dismantling the criminal organizations behind this activity.

The problem of counterfeiting and piracy, once seen by some as relatively harmless crimes, has grown in both magnitude and complexity. Industry and trade associations estimate that counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year and a total of 750,000 American jobs. Some estimates indicate that 5 percent to 8 percent of all the goods and merchandise sold worldwide are counterfeit.

Moreover, the loss of technology and trade competitiveness suffered by U.S. trademark and copyright owners is immeasurable. The creativity and innovative nature of U.S. business is at risk, threatened by a crime that has grown massive and international in scale. The impact is not just on the business community. In some instances, this crime poses a direct threat to public health and safety.

In recent years, the proliferation of counterfeit goods is increasing at an alarming rate. That increase is driven by several factors. One is a growing public demand for brand name products at discount prices without regard to legal consequences. Another reason for the growth is the advent of technology that makes it easy to produce, duplicate and transfer protected materials such as movies and music.

The profile of the IPR criminal has also changed. ICE has investigated several IPR cases that are linked to organized crime. We see the number of criminal organizations involved in IPR crimes growing because of the tremendous profits associated with the sale of counterfeit goods and because these organizations already have access to pre-existing smuggling infrastructures and routes. In many cases, these international organized crime groups take the enormous profits realized from the sale of counterfeit goods and use those profits to bankroll other criminal activities, such as the trafficking in illegal drugs, weapons and other contraband.

ICE, along with its DHS partner U.S. Customs and Border Protection (CBP), made nearly 14,000 seizures last fiscal year. ICE investigations in fiscal year 2007, resulted in 241 arrests, 149 indictments and 134 convictions on IPR violations. During fiscal year 2007, ICE and CBP seized counterfeit or pirated merchandize worth approximately $200 million in domestic value, exceeding the value of the previous year’s seizures by 27 percent.

ICE agents use a variety of assets and resources to combat the counterfeiting problem.

• National Intellectual Property Rights Coordination Center (IPR Center) – The IPR Center has been the federal government’s central point of contact in the fight against IPR violators and the flow of counterfeit goods into the commerce of the United States since 2000. The new center in Northern Virginia is the high-tech home of a partnership between government, private industry and law enforcement communities.
• ICE Cyber Crimes Center (C3) – ICE agents in the United States and abroad work closely with C3 to combat the problem of piracy and related IPR violations over the Internet. C3 is ICE's state-of-the-art center for computer-based investigations, providing expertise and tools to help agents target Internet piracy. C3 allies its anti-counterfeiting efforts closely with the IPR Center.
• ICE Attaché Offices overseas – ICE has approximately 50 attaché offices in about 39 nations around the globe. These attachés coordinate investigative efforts with host nation law enforcement. Since the majority of counterfeit goods in the United States are produced in foreign nations, domestic ICE agents work closely with the ICE attachés on IPR cases.

ICE and its investigators have been recognized internationally for their IPR investigations. Here are examples of those investigations:

• Oregon man pleads guilty to selling counterfeit software worth $1 million
  
  In May 2008, an Oregon man pleaded guilty today to selling counterfeit computer software with a retail value of more than $1 million, in addition to aggravated identity theft and mail fraud. Jeremiah Joseph Mondello, 23, of Eugene, Ore., pleaded guilty to one count each of criminal copyright infringement, aggravated identity theft and mail fraud before U.S. District Court Judge Ann L. Aiken in Eugene. Mondello faces up to 27 years in prison, a maximum fine of $500,000 and three years of supervised release. According to documents filed in court, between December 2005 and October 2007, Mondello initiated thousands of separate online auctions, using more than 40 fictitious usernames and online payment accounts to sell copies of counterfeit software and receive the illicit money from those sales.  
• Four illegal aliens arrested, $5 million in counterfeit merchandise seized
  
  In May 2008, Kemo Krubally, 39, a native of Gambia, West Africa, who operates wholesale and retail merchandise outlets under the name of ATL FASHIONS, was arrested, along with three other men, as a result of an extensive investigation by ICE agents in Gulfport, Miss., and Montgomery, Ala. The counterfeit goods were seized following the execution of five federal search warrants at locations linked to Krubally. The items seized included counterfeit Nike shoes and counterfeit Prada and Coach handbags.
• Alleged distributor of counterfeit pharmaceuticals extradited from Asia
  
  Randy Gonzales, 40, a citizen of the Republic of the Philippines, was extradited to the United States from Bangkok, Thailand, for conspiring to import and distribute counterfeit pharmaceutical drugs into the United States. Gonzales is the first foreign national to be extradited to the United States for conspiring to import and distribute counterfeit pharmaceuticals. The criminal information alleges that through e-mail communications with Gonzales, agents acting in an undercover capacity discovered Gonzalez had secreted large quantities of loose counterfeit Viagra and Cialis pills in packages of general merchandise that had arrived in Houston from China. Gonzales, through e-mail communications, told agents that two other individuals could deliver counterfeit pills. During the year-long investigation, agents made several undercover purchases and seized more than 60,000 counterfeit Viagra pills and 15,000 counterfeit Cialis pills.
• International initiative against traffickers in counterfeit network hardware
  
  In May 2008, Assistant Secretary of Homeland Security for ICE Julie L. Myers, Assistant Attorney General Alice S. Fisher of the Criminal Division, Assistant Director James Finch of the FBI's Cyber Division, Commissioner W. Ralph Basham of CBP and Inspector Peter Goulet of the Royal Canadian Mounted Police (RCMP), announced the results of an ongoing international enforcement initiative between the United States and Canada that targets the illegal distribution of counterfeit network hardware manufactured in China. This ongoing initiative has resulted in more than 400 seizures of counterfeit Cisco network hardware and labels having an estimated retail value of more than $76 million. ICE and CBP opened a total of 28 investigations in 17 separate field offices since 2005, and eight of those investigations were worked jointly with the FBI and several with the RCMP. All together, ICE and CBP seized more than 74,000 counterfeit Cisco network components and labels with a total estimated retail value of more than $73 million.
• California convenience store owner pleads guilty to selling counterfeit DVDs
  
  In February 2008, the owner of a Bakersfield convenience store pleaded guilty to criminal copyright infringement following an investigation by ICE. Daljit Singh Sidhu, 42, co-owner of the India Currency Exchange and Discount Mart, admitted he trafficked in counterfeit DVD movies and labels from December 2005 through December 2006. Sidhu pleaded guilty to selling and renting more than 1,500 counterfeit DVDs out of the two businesses. The counterfeit movies were produced by Yash Raj Films, Inc., Video Sound and Spark Media, Inc. In March 2006, ICE agents executed a search warrant at the co-located businesses, seizing more than 4,000 counterfeit DVDs. Sidhu faces up to five years in prison and a fine of up to $250,000.
• DVD pirate sentenced following ICE investigation
  
  In February 2008, a local DVD pirate was sentenced to 48 months incarceration, three years supervised release and ordered to repay restitution to the Motion Picture Association of America (MPA) in the amount of $878,793 following an undercover ICE investigation worked jointly with Chinese authorities. Thomas Irving Davis Jr., a co-conspirator of Randolph Hobson Guthrie III, was identified as a result of a lengthy investigation that was the first joint IPR investigation by ICE agents and Chinese authorities, and the very first joint Sino-American undercover investigation. Called "Operation Spring", the investigation was initially launched in September 2003 by the ICE Resident Agent-in-Charge office in Gulfport, Miss. In April 2004, agents assigned to the ICE Attaché in Beijing reached out to Chinese authorities and began sharing information on the investigation. After months of joint investigation with ICE, Chinese authorities were able to develop sufficient evidence against Randolph Hobson Guthrie III to make an arrest. On Jul. 1, 2004, officers from the Economic Crime Investigation Department of the Chinese MPS and the Shanghai Public Security Bureau carried out enforcement actions in China that resulted in the arrest of six individuals, including two U.S. citizens, one being Guthrie. In addition, the enforcement actions in China led to the seizure of more than 210,000 counterfeit motion picture DVDs and approximately $67,000 in U.S. currency as well as 222,000 in Chinese Renminibi (RNB) currency. Chinese authorities also located and destroyed three warehouses that were being used to store counterfeit motion picture DVDs for distribution around the globe, including the United States.
• ICE, NBA, local police protect NBA All Star Game fans from sports knockoffs
  
  In February 2008, ICE special agents and investigators under contract to the National Basketball Association (NBA) descended on businesses, free-lance entrepreneurs and a well-established flea-market in New Orleans, over the weekend, in what was termed a President's Day weekend sweep, seizing an array of counterfeit items, including Nike shoes, Louis Vuitton handbags, Rolex watches and autographed basketball jerseys. A number of jerseys, some bearing the autographs of famous athletes, are among the more than 10,000 pieces of counterfeit memorabilia and clothing confiscated by ICE and local law enforcement over the past three days. ICE investigators estimate the retail value of the merchandise seized so far exceeds $732,000.
• ICE, NFL, area police protect Super Bowl fans from sports fakes
  
  In January 2008, acting on a tip, agents with ICE and an investigator under contract to the National Football League (NFL) descended on a sports memorabilia store in Glendale, Ariz., seizing an array of counterfeit items, including a signed football jersey retailing for more than $2,000. The jerseys, some bearing the autographs of famous athletes, are among the more than 1,200 pieces of counterfeit sports memorabilia and clothing confiscated by ICE and local law enforcement in a five day period. ICE IPR investigators estimate the retail value of the merchandise seized at that time far exceeds $140,000.
• Value of CBP, ICE seizures of counterfeit goods in fiscal year 2007 is up 27 percent
  
  In January 2008, DHS announced it had seized counterfeit or pirated merchandize worth approximately $200 million in domestic value for fiscal year 2007. This year's activities continue a significant upward trend in the value of seizures, exceeding the value of last year's by 27 percent. CBP and ICE, components of DHS, made over 13,600 seizures last year. ICE investigations in fiscal year 2007 resulted in 241 arrests, 149 indictments and 134 convictions on IPR violations.
• Three New Yorkers arrested in large counterfeit luxury goods operation
  
  In January 2008, Assistant Attorney General Alice S. Fisher of the Criminal Division and United States Attorney for the Eastern District of Virginia Chuck Rosenberg announced that a federal court in Richmond unsealed an indictment of three defendants involved in one of the largest ever counterfeit luxury goods operations in the United States. All three defendants were arrested by ICE agents. On Oct. 2, 2007, a federal grand jury in Richmond, Va., returned a seven-count indictment charging Chong Lam, 49, Siu Yung Chan, a.k.a. Joyce Chan, 39, and Eric Yuen, 39, all of New York with one count of conspiracy to traffic in counterfeit goods imported from the People's Republic of China (PRC); four counts of trafficking in counterfeit handbags, wallets, purses and carry-on bags; and two counts of illegally smuggling counterfeit goods into the United States. The defendants each face 55 years in federal prison and $8.75 million in fines if convicted on all charges. According to the indictment, Lam, Chan, Yuen and their fellow conspirators operated a massive international import and wholesale counterfeit goods business. The value of the corresponding authentic luxury goods manufactured by Burberry, Louis Vuitton, Gucci, Coach and others, whose legitimate sales were displaced, is estimated to be over $100 million.
• 10 charged in $200 million smuggling operation in Port of Newark
  
  In December 2007, Michael J. Garcia, the United States Attorney for the Southern District of New York, Kyle A. Hutchins; ICE Special-Agent-in-Charge of the Newark, N.J., Field Office; and Susan T. Mitchell, the Director of Field Operations of CBP in New York announced the arrests of 10 individuals on charges related to the smuggling and trafficking of counterfeit goods. These criminal charges follow a long-term undercover investigation into an elaborate scheme to defeat federal border and port security measures at Port Newark-Elizabeth Marine Terminal (Port Newark) in Elizabeth, N.J., by smuggling massive amounts of counterfeit merchandise from China into the United States. The retail value of genuine versions of this merchandise is estimated to be more than $200 million.
• U.S. charges six with trafficking in counterfeit designer clothing
  
  In November 2007, Michael J. Garcia, the United States Attorney for the Southern District of New York; Mark J. Mershon, FBI Assistant Director-in-Charge of the New York Office; John P. Gilbride, the Special Agent in Charge of the United States Drug Enforcement Administration (DEA); and Salvatore Dalessandro, ICE Acting Special Agent-in-Charge of the New York Office announced the arrests of six individuals - Sam Wang, a/k/a "Hwa Shan Wang," Hussein Nasser, Hussein Chahine, Hassan Chahine, Ali Fayad Nasser and Colin Tsai, a/k/a "Chang-Yeh Tsai" - on charges that they conspired to import and distribute millions of dollars worth of counterfeit clothing bearing various urban and hip-hop-style designer labels. According to the complaints, Wang shipped counterfeit designer clothing until as recently as October 2007, and shipped a total of more than $19.7 million worth of clothing between August 2003 and November 2006.
• ICE seizes over 90,000 counterfeit CDs and DVDs
  
  In November 2007, ICE special agents, working with officials of the Motion Picture Association of America (MPAA) and Recording Industry Association of America (RIAA), seized more than 90,000 copies of counterfeit CDs and DVDs at one of the largest flea markets in the municipality of Arecibo, Puerto Rico. These seizures were part of Operation Digital Pirates II, an ICE investigative initiative into the identification of IPR violations. More than 90 ICE, MPAA and RIAA law enforcement officers participated in this operation in an effort to dissuade alleged "digital pirates" from engaging in this criminal activity. The operation was the second largest in Puerto Rico since ICE launched Operation Digital Pirates I in May 2007 in 11 municipalities across the island. Digital Pirates I netted the seizure of more than 53,000 counterfeit CDs and DVDs at flea markets in Mayaguez, Arecibo, Vega Baja, Aguadilla, Hatillo, Vega Alta, Bayamon, Rio Grande, Salinas, Guayama and San Juan, Puerto Rico.
• New Hampshire corporation pleads guilty in counterfeit drug importation
  
  On Aug. 30, 2007, a New Hampshire company, Vee Excel Drugs & Pharmaceuticals, Inc., pled guilty to charges that it had conspired to traffic in counterfeit drugs and to introduce misbranded drugs into the United States. Following a joint investigation by ICE and the Food and Drug Administration's Office of Criminal Investigations, the corporation admitted that it had conspired to ship counterfeit Cialis tablets into the United States in packages fraudulently identified as containing chlorine tablets. As part of the plea, the corporation agreed to forfeit all moneys held in its bank accounts.
• ICE, industry team up in gaming piracy crackdown
  
  In the largest national enforcement action of its kind targeting this type of illegal activity, on Aug. 1, 2007, ICE agents from 22 offices, assisted by representatives of the electronic industry, executed 32 federal search warrants in 16 states as part of an ongoing investigation into the alleged sale and distribution of illegal modification chips and disc copyright circumvention devices. The search warrants were executed at businesses, storefronts and residences associated with subjects who are allegedly involved in the direct importation, installation, sale and distribution of the devices that are of foreign manufacture and smuggled into the United States. The chips and devices allow users to play illegally obtained, pirated and counterfeit software on video game consoles by Microsoft, Nintendo and Sony. The names of those targeted and case specifics are not yet releasable.
• 29 defendants in New York, New Jersey and California charged with conspiracy to smuggle over 950 shipments of merchandise into the United States
  
  In late June 2007, 29 defendants were charged in three separate complaints with conspiracy to traffic in counterfeit goods and/or conspiracy to smuggle over 950 shipments of merchandise into the United States - principally from China - through ports of entry at Newark, N.J.; Houston, Texas; Long Beach, Calif.; New York Container Terminal in Staten Island, N.Y.; and John F. Kennedy International Airport. Four of the defendants were also charged with money laundering. The charges were the result of a 19-month coordinated initiative by ICE and CBP. The investigative techniques included the use of cooperating witnesses, undercover agents and video and audio surveillance. During the course of their investigation, officers seized counterfeit merchandise that, had it been authentic, would have an estimated value of approximately $700 million.
• Avondale man sentenced to 24 months in federal prison for trafficking in counterfeit goods following ICE investigation
  
  In May 2007, New Orleans-area resident Charles Temple was sentenced to 24 months for trafficking in counterfeit goods bearing the counterfeit trademarks of Chanel, Lacoste, Nike, Red Monkey, Rocawear, Coach, Dooney & Burke, Gucci, Prada and others. The goods, which were valued between $70,000 and $120,000, were being sold at a Metro New Orleans store. The ICE-led investigation also involved the FBI, the Jefferson Parish Sheriff's Office and the U.S. Postal Inspection Service.
• Miami Super Bowl fraud initiative
  
  In February 2007, ICE, NFL, the Miami-Dade Police Department (MDPD), and CBP have partnered to combat IPR violations as they relate to the illicit introduction of counterfeit Super Bowl XLI merchandise into the commerce of the United States. IPR violations involve the illegal use of trademarks, trade names and copyrights. It is estimated that the U.S. industry alone loses $200 to $250 billion to counterfeiting annually.
• ICE investigation leads to the break-up of counterfeit apparel smuggling ring
  
  In December 2006, Julie Myers, Assistant Secretary of Homeland Security for ICE and Michael J. Garcia, the United States Attorney for the Southern District of New York, announced the arrests of four individuals in New York, New Jersey and Texas, on charges of trafficking in counterfeit goods. All four defendants were charged with trafficking in counterfeit goods with counterfeit trademarks and three of the accused, were also charged with paying bribes in an effort to procure the release without inspection of their smuggled goods by Customs.
• Two U.S. citizens linked to more than $2 million in counterfeit merchandise arrested by ICE special agents in New Orleans
  
  In November 2006, Charles Temple, 39, and Abraham Quraan, 23, were indicted in the Eastern District of Louisiana on one count each of trafficking in counterfeit merchandise in violation of 18, US Code 2320. The counterfeit goods were seized by ICE special agents following the execution of 15 federal search warrants at locations linked to Temple and Quraan. The items seized included counterfeit Nike shoes and counterfeit Prada and Coach handbags.
• Man pleads guilty to attempting to sell counterfeit children’s trading cards
  
  Los Angeles man pleaded guilty to a federal charge of attempting to sell counterfeit “Yu-Gi-Oh” playing cards that would have been worth more than $1 million if they were legitimate. Luis Alfonso Lopez Canche, 37, pleaded guilty in U.S. District Court in Los Angeles to a felony count of attempted trafficking in counterfeit goods. The case was investigated by ICE, based on an initial lead from investigators working for Yu-Gi-Oh!’s trademark holder, Upper Deck. Lopez faces up to 10 years in prison and a fine of up to $2 million when he is sentenced.
• Zig-Zag money laundering defendant to pay over $5 million in restitution
  
  In November 2006, an organization based in the Detroit area was responsible for importing counterfeit Zig-Zag cigarette papers with an estimated manufacturer's suggested retail price of $16 million and selling them well below the cost of the registered brand item. The organization also laundered approximately $1 million in proceeds derived from the sale of the counterfeit merchandise. Seven individuals were convicted of federal violations associated with the ongoing criminal enterprise, including trafficking in counterfeit goods, conspiracy, money laundering, false statements and perjury. Defendants were ordered to pay over $6 million in restitution to the trademark holder and three will be removed from the United States on completion of prison sentences.
• Wireless City Stores’ owner and employees sentenced for criminal copyright infringement
  
  In September 2006, Derrick Lynn Harrell, 30, was sentenced in the U.S. District Court, Western Michigan, by Chief Judge Robert Holmes Bell, to 48 months in prison. He pleaded guilty on three counts of criminal copyright infringement May 5. Harrell was additionally sentenced to two years supervised release and 200 hours of community service, and will also forfeit $25,000. ICE agents and officers with the Metropolitan Enforcement Team (MET) executed search warrants at Wireless City Pager and Cellular in Grand Rapids and Kalamazoo in May 2005 and again in November 2005. During the execution of the search warrants, they located a large-scale illegal copying and distribution operation for counterfeit DVD, movies and music CDs. The ICE agents seized a total of 18,766 original and counterfeit music CDs and DVDs, 34 CD/DVD copiers (burners) and six computers.
• Philadelphia woman charged with trafficking in counterfeit pharmaceuticals
  
  In September 2006, U.S. Attorney Pat Meehan announced the filing of a three-count indictment charging Niaja Kane with trafficking in counterfeit goods, holding counterfeit drugs for sale with intent to defraud, and possession with intent to distribute a counterfeit controlled substance. According to the indictment, on Feb. 29, 2006, Kane possessed thousands of counterfeit drugs, including approximately 8,906 counterfeit Percocet® tablets, approximately 2,040 counterfeit Viagra® tablets and approximately 1,200 counterfeit Cialis® tablets. If convicted of all charges, Kane faces a total of 33 years in prison, $3,250,000 fine and three years supervised release with a $300 special assessment.
• Federal authorities dismantle major international counterfeit merchandise ring
  
  In September 2006, in Arizona, California and Texas, ICE and CBP seized 77 containers of counterfeit Nike Air Jordan athletic shoes and one container of Abercrombie & Fitch clothing with an estimated manufacturer's suggested retail price value of $69.8 million. Six individuals, two of them U.S. citizens, were indicted by a federal grand jury for bribery, trafficking in counterfeit goods and conspiracy. An undercover ICE agent, posing as a CBP officer, was offered $25,000 in bribery payments to facilitate the release and diversion of six seized containers.
• Two men sentenced to more than seven years in prison for trafficking in counterfeit goods following an ICE investigation
  
  In August 2006, Ji Wu Chen and Meihua Li were found guilty by a federal jury of conspiring to traffic in counterfeit goods, trafficking in counterfeit goods, and concealing and selling imported counterfeit goods. Federal District Court Judge Jose E. Martinez sentenced Chen to 97 months and Li to 87 months in federal prison. According to the evidence presented at trial, the defendants conspired to traffic in, and did actually traffic in, goods violating trademarks. These goods included electrical cords, batteries, handbags, wallets, suitcases, shoes, hats, sunglasses, watches, key holders, umbrellas, and different items of clothing and accessories bearing the counterfeit trademarks of Underwriters Laboratories, Duracell, Louis Vuitton, Rolex, Prada, Gucci, Coach, Disney, Nike, Major League Baseball, Oakley and others.
• Skin and Vein Center guilty of importing non-FDA-approved medical devices
  
  In July 2006, The Skin and Vein Center pleaded guilty to unlawfully importing goods into the United States, announced U.S. Attorney Stephen J. Murphy, Eastern District of Michigan; Michael E. Cleary; special agent-in-charge of the Food and Drug Administration (FDA), Office of Criminal Investigations; and Brian M. Moskowitz, special agent-in-charge, ICE. Dr. Eric Seiger previously entered a guilty plea on July 5 to the misdemeanor offense of introducing a misbranded medical device into commerce.
• Chesterfield Township retailer sentenced for selling counterfeit products
  
  In July 2006, a Chesterfield Township retailer was sentenced to serve 18 months imprisonment for charges related to trafficking counterfeit goods. Marshall Cousens, 59, of Macomb, Mich., was sentenced today in U.S. District Court by the Honorable Julian Abele Cook. Cousens pleaded guilty on March 21 to trafficking or attempting to traffic in counterfeit trademarked merchandise. The evidence presented at the time of the plea showed that, on the date of his arrest, Cousens possessed with the intent to sell handbags and other counterfeit items with a retail value of over $182,000, based on the discounted prices he charged for the counterfeit merchandise.
• Minot man sentenced to five years for selling designer and misbranded drugs, violating customs laws
  
  In June 2006, U.S. District Court Chief Judge Daniel L Hovland sentenced Lee Michael Badrak, 34, to 60 months imprisonment to be followed by four years of supervised release. Badrak's sentence was also based upon a conviction in a separate case for conspiracy to possess with intent to distribute and distribute cocaine, to which Badrak pleaded guilty Jul. 14, 2005. Badrak pleaded guilty Jan. 19, 2006, to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues 5-Methoxyalpha-methyltryptamine HCl (5-MeO-AMT) and 5-Methoxy-N, N-Disopropyltyptamine HCl (5-MeODIPT); one count of introducing the misbranded drug 2,4 Dinitrophenal (DNP) into interstate commerce; and one count of introducing the misbranded drug Nalbuphine HCl into interstate commerce.
• Two Chelsea residents plead guilty to participating in one of New England's largest counterfeit goods conspiracies
  
  In June 2006, two Chelsea residents pleaded guilty today in federal court to money laundering and trafficking and conspiring to traffic in more than $1.4 million of counterfeit luxury handbags and wallets, as well as the materials needed to make counterfeits. Minh Vu, age 26, and Katherine Luong, age 27, both of Chelsea, pleaded guilty before U.S. District Court Judge William Young. Vu pleaded to eight criminal counts charging conspiracy to traffic in counterfeit goods, conspiracy to commit money laundering and a variety of counts alleging specific instances of trafficking in counterfeit goods and money laundering. Luong pleaded to seven similar charges of conspiracy, money laundering and trafficking in counterfeit goods.
• Inbound passenger to Detroit airport found guilty of smuggling counterfeit DVD movies
  
  In May 2006, an Oklahoma man was convicted in U.S. District Court for smuggling counterfeit DVDs into the United States. This conviction followed an investigation by ICE. Thian Hor Teh, 52, a U.S. citizen born in Malaysia, was detained at the Detroit Metropolitan Airport after he arrived from Japan via Manila, Philippines, in September 2004. A secondary examination conducted by CBP inspectors and ICE agents revealed two boxes containing1,040 counterfeit DVDs and labels.
• L.A.-area computer store owner convicted of trafficking in counterfeit software
  
  In May 2006, the owner and operator of Media Solutions, a now-defunct Los Angeles area computer hardware and software store, was convicted for trafficking in counterfeit Symantec and Quicken computer software in connection with an investigation by ICE. Joan Huang, 43, of Rancho Palos Verdes, was found guilty of one count of conspiring to sell counterfeit software, five counts of attempted trafficking in counterfeit software and one count of trafficking in the software. Huang sold counterfeit software with a retail value of more than $200,000. Huang faces a maximum possible sentence of 75 years in federal prison when sentenced.
• Hollywood game store owner pleads guilty to pirating video games and illegally modifying Xbox game consoles
  
  In May 2006, the co-owner of a Hollywood California video game store pleaded guilty today in federal court to conspiring to violate federal copyright laws for his role in a scheme to install pirated video games on specially modified Xbox game consoles sold through the store. Jason Jones, 34, of Los Angeles, a co-owner of ACME Game Store, pleaded guilty to charges stemming from an investigation by ICE. Jones' partner - Jonathan Bryant, 44, of Los Angeles - has signed a plea agreement and is scheduled to plead guilty to a conspiracy count. Jones admitted in court that he and Bryant modified Xbox game consoles by installing more than 50 pirated games on each machine. The statutory maximum sentence for the conspiracy is five years in federal prison and a fine of $250,000, or twice the gross gain or gross loss resulting from the offense.
• Guilty pleas entered in faked goods case
  
  In March 2006, Michael A. Holt, Special Agent-In-Charge of ICE in New Orleans and U.S. Attorney Bud Cummins announced that Jamileh K. Afsordeh (aka Kobra Afsordeh, aka Jamileh Kamran), 52, and her brother Jalil Kamran(aka Jim Kamran), 56, both of Little Rock, Ark., waived indictment and entered felony guilty pleas, Mar. 15, 2006. The guilty pleas stem from their roles in trafficking in counterfeit goods. During the search of two businesses, agents seized hundreds of counterfeit Louis Vuitton, Prada, Burberry, Kate Spade, Chanel, Coach, Fendi and Gucci purses, wallets and other items. The maximum statutory penalty is not more than 10 years imprisonment and/or not more than a fine of $2 million with three years of supervised release. Each defendant agreed to pay a $10,000 fine and $2,470.52 in restitution and to forfeit any and all counterfeit items. They also agreed to cooperate in on-going investigations against others involved in trafficking counterfeit goods.
• ICE and partners seize nearly 43,000 counterfeit items at Super Bowl XL worth more than $500,000
  
  In February 2006, in anticipation of Super Bowl XL, ICE agents, the Detroit Police Department and the National Football League Properties initiated Operation Grid Iron, which targeted counterfeit merchandise for sale in association with the event. ICE seized in excess of 42,900 pieces of counterfeit merchandise valued at approximately $535,690.
• Probe into Bay area antique stores widens
  
  In January 2006, federal agents executed search warrants for the second time, at a string of antique shops in Union Square and Fisherman's Wharf, seeking evidence that the businesses illegally imported and sold counterfeit designer furniture and house wares. An operation involving agents from ICE, Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Fish and Wildlife Service, and the FBI, targeted five antique shops as well as a warehouse used by the businesses. According to court documents, ICE is investigating allegations that the businesses violated IPR laws by trafficking in counterfeit Versace furniture, dinnerware and art objects.
• California man pleads guilty to selling counterfeit designer leather goods
  
  In November 2005, an Orange County man accused of selling large quantities of counterfeit designer leather goods out of his home in an upscale Newport Beach, Calif., neighborhood pleaded guilty in federal court to two counts of trafficking in counterfeit goods. Terry Smith, 57, was arrested a year ago by ICE agents following a search of his residence in Newport Coast. There, ICE agents seized over 800 counterfeit designer handbags, wallets, belts and other leather goods bearing copies of trademarks belonging to companies including Louis Vuitton, Prada and Gucci.
• Operation "Kopy Kat" results in seizure of thousands of pirated motion picture DVDs and music CDS
  
  In December 2005, ICE special agents executed a search warrant at the Brownsville, Texas Flea Market and shut down more than 20 shops and an underground lab used to produce counterfeit DVD movies and music CDs. A total of 24,153 DVDs and CDs that were being sold for less than $10 each were seized at the various shops. No one was arrested at the scene. However, ICE special agents continue to investigate and contact other law enforcement agencies that may have information leading to this criminal network. In September 2005, a total of 8,725 DVDs and CDs were seized at the scene, each of them being sold for about $10. No arrests were made during the execution of the search warrant at the Val Verde Flea Market in Donna, Texas.
• Online software ring broken in nationwide operation
  
  Twice in September 2005 and once in January 2005, individuals were prosecuted during Operation Safehaven, a 15-month ICE investigation. Carol Szoke, 62 of Nazareth, Pa., waived indictment and pleaded guilty in New Haven to one count of conspiracy to commit criminal copyright infringement. Kurt M. Brink, 25, a resident of Portland, Ore., pleaded guilty to conspiring to commit criminal copyright infringement. Manpreet Singh, 22, of Ohio, was sentenced in New Haven for his conviction for conspiring to commit criminal copyright infringement. These individuals were part of the “warez scene” - an underground online community that consists of individuals and organized groups who use the Internet to engage in the large-scale, illegal distribution of copyrighted software. Operation Safehaven culminated in April 2003 with the simultaneous execution of more than 20 search warrants nationwide, resulting in the seizure of thousands of pirated CDs and DVDs, plus dozens of computers and servers, including the largest warez site ever seized in the United States to date.
• Woman pleads guilty to trafficking in counterfeit DVDs online
  
  In June 2005, Terese Hawkins, 24, plead guilty in federal court to one count of “Trafficking in Counterfeit Labels.” During the investigation, ICE special agents seized a package from Bangkok, Thailand, containing 774 counterfeit DVDs and jewel case inserts. ICE subsequently executed a federal search warrant at Hawkins’ residence, seizing approximately 1,550 counterfeit DVDs and jewel case inserts, along with other materials, including wire-transfers to Pakistan. The materials were used in her home-based business of selling counterfeit DVDs online. Hawkins faces up to five years in prison and/or a $250,000 fine.
• ICE, NFL seize over $5 million in counterfeit goods at the Super Bowl
  
  In February 2005, ICE, NFL and the Jacksonville Sheriff’s Office announced that a joint initiative targeting the sale of counterfeit goods at Super Bowl XXXIX has resulted in the seizure of roughly 20,000 counterfeit items valued at more than $5 million, as well as three arrests and one conviction. In a single, two-day enforcement action last month, agents and officers seized more than 5,500 counterfeit items, including knock-off NFL properties, Oakley sunglasses, batteries and purses from vendors in Jacksonville. To date, Operation End Zone has resulted in the seizure of more than 20,000 counterfeit goods, which have filled local law enforcement warehouses. Two federal criminal indictments have resulted. One of the defendants has pleaded guilty.
• Leader of large online counterfeit pharmaceutical network sentenced to prison
  
  On Jan. 21, 2005, Mark Kolowich, the leader of one of the largest Internet counterfeit pharmaceutical networks to ever be prosecuted, was sentenced in federal court in San Diego to 51 months in prison as a result of a joint investigation by ICE, the FDA, the IRS and the FBI. Kolowich operated an Internet pharmacy at www.WorldExpressRx.com that sold millions of dollars worth of counterfeit Viagra, Cialis, Levitra and other pharmaceutical drugs to customers throughout the world. Some of the counterfeit drugs were manufactured in Mexico and smuggled into the United States, while others were brought in from India and Pakistan. Kolowich also offered credit card processing for other Internet sites that sold counterfeit drugs. World Express received roughly $1 million per month from credit card charges in 2003, half of which resulted from sales of World Express Rx or its affiliates. A total of 16 defendants from California, Florida, Mexico and the Bahamas were charged in this case.