March 27, 2007

Former airline employee pleads guilty to smuggling counterfeit goods
Used travel benefits to smuggle goods

DETROIT — A retired Northwest Airlines employee pleaded guilty here today to smuggling counterfeit goods into the United States following an investigation by U.S. Immigration and Customs Enforcement (ICE).

Douglas Scroggins, 44, a Chelsea resident and owner of several “Bear Claw” coffee shops pleaded guilty before U.S. District Court Judge Gerald Rosen to smuggling goods into the United States.

In February 2006, Scroggins returned to the United States on a flight originating in Shanghai, China, to Detroit via Japan. U.S. Customs and Border Protection (CBP) officers referred him for an additional inspection.

ICE was called to investigate after Scroggins had in his possession the following counterfeit items: 140 DVDs, 175 Gucci watches, eight Rolex watches, 14 Gucci purses, eight Montblanc pens, five Tiffany necklaces, 12 Calloway golf clubs, two Odyssey golf putters, three Calloway golf bags, golf hat, umbrella and three sets of Fanghua pearl jewelry.

Indices checks discovered that Scroggins also had two previous seizures.  In 2003, he had attempted to smuggle into the United States various counterfeit items, including:  876 DVD movies; 30 Oakley sunglasses; Louis Vuitton handbags and purses, 23 North Face jackets, gloves, duffel bags; and Coach handbags and hats.  In 2005, he again attempted to smuggle into the United States other counterfeit items, including: 10 Luis Vuitton bags, five Gucci bags, and four Coach bags.

Scroggins admitted that he purchased the counterfeit items in China with plans to sell them to friends, family and others in the United States.

"Intellectual property rights crimes such as counterfeiting are not victimless; they should concern every American," said Brian M. Moskowitz, special agent in charge of the ICE Office of Investigations in Detroit. "This type of criminal activity costs U.S. industries nearly $250 billion in losses each year.”

Assistant U.S. Attorney Jenneane Jones, U.S. Attorney’s Office, Northern District of Michigan, prosecuted this case.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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