N.Y. Husband and Wife Sentenced in Counterfeit Nike Imports Case
Two New York residents were sentenced in the U.S. District Court for Western New York for their part in a conspiracy to import and distribute counterfeit Nike sneakers from China. Xiao Cheng Lin was sentenced to one year in prison and a $7,500 fine, and her husband Ling Zen Hu got six months in prison and will pay a $6,000 fine. Judge Richard Arcara’s sentences came in well below 37 to 46 months recommended for the crime, despite the government’s arguments to the contrary. The defendants’ children had submitted letters to the court warning of the hardship a harsh sentence would cause the family, and Congresswoman Grace Meng, D-N.Y., contributed a letter as well.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Lin and Hu, both of Flushing, Queens, N.Y., pleaded guilty in 2011 to their part in the counterfeit Nike conspiracy. According to the U.S. Attorney’s Office for the Western District of New York, Lin and Hu were involved in the importation of the sneakers, and sold the counterfeit shoes to Malik Bazzi of New York. Bazzi then sold the shoes elsewhere, including Buffalo and Niagara Falls. The government recorded Hu taking orders, discussing payments, and directing delivery of the counterfeit sneakers to Bazzi, the attorney’s office said. Lin was observed loading sneakers into a van at warehouses and then delivering them to Bazzi, it said.
Over 310,000 pairs of counterfeit sneakers were seized during the wide-ranging investigation. Another 20 people have been convicted for their roles.
The plea agreement noted that Lin and Hu’s crimes are usually punished by a 37-46 month prison term, and the government argued for Judge Arcara to heed the sentencing guidelines. But the defendants argued that such a long sentence would cause severe hardship for the family, including forcing the couple’s son to cut short his pursuit of a dual degree in chemistry and physics from New York University. The couple’s daughter also argued that Lin and Hu, both Chinese immigrants, weren’t completely aware of U.S. law. Congresswoman Meng also urged caution, noting the market that Lin employs over 40 people. Ultimately, Judge Arcara imposed much shorter prison sentences than those recommended by the guidelines. But the defendants will have to forfeit $750,000 that was seized during a search of their home in 2007.