More Than $896K Seized from Online Sale of Chinese Counterfeit Sports Apparel
More than $896,000 in proceeds from the distribution of counterfeit sports apparel as the result of an investigation into the sale of counterfeit goods on commercial websites were seized by the Immigration and Customs Enforcement-led National Intellectual Property Rights Coordination Center (IPR Center) and the Department of Justice. The investigation also resulted in the seizure of seven domain names engaged in the sale of counterfeit goods. The funds were seized from interbank accounts and three PayPal accounts.
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Counterfeit Sports Apparel Sold Online from China; Domain Names Seized
According to court documents, investigation by federal law enforcement officers revealed that several subjects whose domain names had been seized in a November 2010 through Operation In Our Sites continued to sell counterfeit goods using new domain names. In particular, the individuals, based in China, sold counterfeit professional and collegiate sports apparel, primarily counterfeit sports jerseys. Law enforcement officers made numerous undercover purchases from the websites associated with the new domain names. After the goods were confirmed to be counterfeit or infringing, seizure warrants for seven domain names used to sell the goods were obtained from a U.S. magistrate in U.S. District Court for the District of Columbia.
Funds Seized from Interbank Accounts Held by Chinese Banks in the U.S.
The individuals conducted sales and processed payments for the counterfeit goods using PayPal accounts and then wired their proceeds to bank accounts at Chinese banks. Pursuant to warrants issued by a U.S. district judge, law enforcement officers seized $826,883 in proceeds that had been transferred from PayPal accounts to various bank accounts in China. The funds were seized from correspondent, or interbank, accounts held by the Chinese banks in the U.S. Pursuant to additional seizure warrants issued by a U.S. magistrate judge, law enforcement officers also seized $69,504 in funds remaining in three PayPal accounts used by the subjects.
(The investigation by ICE's Office of Homeland Security Investigations (HSI) is a result of Operation In Our Sites, which targets online commercial intellectual property crime, and began in June 2010. Operation In Our Sites targets online retailers for a diverse array of counterfeit goods, including sports equipment, shoes, handbags, athletic apparel, sunglasses and DVD boxed sets. To date, 758 domain names of websites engaged in the sale and distribution of counterfeit goods and illegal copyrighted works have been seized as a result of Operation In Our Sites.)