Counselor Magazine June 2012 : Page 37

News Feds Crack Down On Apparel Counterfeiters A recent federal crackdown on counterfeit athletic apparel accelerated into higher gear in April, with agents raiding a ﬂea market in Baltimore and seiz-ing $4 million worth of knockoff clothing from a warehouse in Sacramento. Described as one of the largest seizures of illegal apparel in Sacramento history, a raid of the warehouse turned up rows upon rows of 40-foot-high shelving that contained boxes and individually-wrapped pack-ages of counterfeit clothing. A ﬁnal tally of the bogus apparel pieces could number in the tens of thousands. Conducted by U.S. Immigra-tion and Customs Enforcement’s Homeland Security Investiga-tions, the long-term investiga-tion in Sacramento revealed that the bulk of the counterfeit clothing bore the Adidas trade-mark. Destined for ﬂea markets and retail shops, the sports jerseys, shorts and shoes would, if legitimate, carry a value of more than $4 million, an Adidas consultant told authorities. The merchandise had been produced in Southeast Asia. Meanwhile, a 2 ½-year-long investigation by the Depart-ment of Homeland Security led agents to also bust the Patapsco Flea Market in southwest Balti-more. From the 300,000-square foot market, which draws large crowds on weekends, authorities seized counterfeit clothing and pirated merchandise like cosmetics and musical recordings. A tally on the dollar amount and num-ber of counterfeit pieces seized is not yet available. Authorities and corpo-rations are keen to crack down on counterfeiting, which they say hurts businesses and deprives Americans of legitimate jobs. Under Armour, which is based in Baltimore, released a statement that said: “Individuals who pro-duce and sell counterfeit goods harm the American economy. The reality of counterfeiting is that it’s much greater than just buying a knockoff item at a discounted price; it’s a multibil-Um, that’s not Nike stuff lion-dollar-a-year problem that undermines corporations.” The stings in Baltimore and Sacramento follow a bust earlier in April in which U.S. authorities seized nearly $900,000 and seven website domain names from China-based organizations that were selling counterfeit athletic apparel over the Internet. – CR COUNSELOR | JUNE 2012 37

Counselor Magazine June 2012 : Page 37

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