California Man Faces Charges for Import and Sales of Counterfeit Phone Parts From China
A California man was arrested April 16 after Immigration and Customs Enforcement said he ran a multimillion-dollar scheme that smuggled counterfeit Apple and Samsung cellphone parts from China into the U.S. for sale to the public. Chan Hung Le faces a maximum sentence of 45 years in prison if convicted. Le, who owns Irvine, California-based EZ Elektronix, started the import scheme in 2010, ICE said in a press release.
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ICE said Le worked with relatives and employees to use “various tactics to avoid scrutiny from authorities in the United States, Hong Kong and China.” Le used fake business names and multiple addresses to hide the scheme, and after Homeland Security Investigations agents issued search warrants for his business in 2011 and 2012, Le had the counterfeit parts imported to mail-drops in Texas and Oklahoma under fictitious business names instead, and from there shipped them to California under a new business name, ICE said. “Using these methods, Le ensured that the shipments containing counterfeit goods would be inspected at a different port of entry in the U.S. and would not be associated with him or his company,” according to the press release. Le then sold the parts online, including on eBay, claiming they were “genuine,” according to court records.
Between January 2012 and December 2018, Le’s business paid more than $72 million to three companies that worked with Le to send counterfeit phone parts to the U.S. from Hong Kong to China, including more than 2,000 shipments from Hong Kong between 2012 and 2015, records show. Le said he covered most of the logos from the counterfeit goods he received from China “as a way to clear Hong Kong and US customs more easily” and so he would not be asked for an "authorized letter," according to records.
Le is charged with conspiracy to defraud the U.S., and several other conspiracy charges, including to commit mail fraud and wire fraud.
Email ITTNews@warren-news.com for a copy of the complaint.