COUNTERFEIT JEAN FACTORY RAIDED

Officials from the California Department of Labor were recently conducting an investigation of a sewing factory in the City of Los Angeles. The officials were at the location investigating labor issues when the very observant officials noticed that the factory was making name brand jeans. This seemed very suspicious and rightfully so. The official had recently received our IP Crimes newsletter.

Investigative Consultants was contacted and determined that the factory was in fact involved in the manufacturing of counterfeit jeans. This is a great find, as a majority of counterfeit jeans are now being made outside of the United states.

LAPD responded to the location and arrested the owners of the location, who were a husband and wife team. The sewing factory had several sewing machines and had the capability to make thousands of counterfeit jeans on a weekly basis. LAPD recovered several hundred pairs of completed jeans, along with thousands of counterfeit buttons, labels, tags, rivets, and other items. The owners of the location claimed that the jeans were “dropped off” by some unknown person and they were just being nice and sewing the jeans together for the unknown man. Not a very believable story. Way to keep your eyes open!!!

OC Piracy Operation Shut Down!

Investigative Consultants assisted Orange County law enforcement officials in the largest recovery of pirated merchandise in California’s history. Law enforcement conducted an extensive investigation into the sales, manufacture, and distribution of pirated music and movies throughout Orange County, California.

Law enforcement identified an entire network that was involved in a major piracy operation. Law enforcement served multiple search warrants and arrested the primary subject. Based on law enforcement’s outstanding efforts, over 3,000,000 pirated items were recovered and taken into evidence. This was the largest seizure of pirated goods in California’s history.

By: Investigative Consultants

SWAP MEET ENFORCEMENT!

The LA County Sheriff’s Department, COPS Bureau has continued their very effective trademark counterfeiting and music piracy program targeting the sales of pirated and counterfeit goods at swap meets in and around Los Angeles County. The LASD’s anti counterfeiting efforts have made a huge impact on the sales of counterfeit goods at swap meets.

The Sheriff’s department has conducted actions at multiple swap meets and made a total of over 30 arrests for counterfeiting and piracy violations. The program has been so successful that swap meet mangers and swap meet personnel are now taking proactive steps to keep counterfeit goods from being sold at their markets. Several swap meets are starting to understand the importance of intellectual property protection and have implemented brand protection procedures.

The impact is being felt at swap meets all over LA County and it appears that LASD’s efforts have caused at least a 30% decrease in the sales of counterfeit goods at swap meets throughout Los Angeles County. This includes swap meets where no actions have taken place.

By: Investigative Consultants

OPERATION SAN PEDRO ALLEY

The LAPD’S intellectual property protection efforts focusing on stopping the sales and distribution of counterfeit goods around the downtown Los Angeles area have been very effective. Based on the efforts of the LAPD in and around the infamous Santee Alley area, several of the vendors selling counterfeit goods and pirated music have moved away from Santee Alley and have now set up shop in the San Pedro alley.

The San Pedro Alley is now becoming a “hot spot” for the sales of counterfeit and pirated goods. Investigative Consultants recently assisted the LAPD in a major action in the San Pedro Alley area. The LAPD made a total of 14 arrests during the action. The LAPD is more committed than ever to stop trademark counterfeiting, movie piracy, and music piracy. The LAPD has been doing their best to enforce the counterfeiting laws.

By: Investigative Consultants

HOW MUCH MONEY CAN COUNTERFEITERS MAKE?

The common perception is “not much.” Well that’s not true. Those involved in intellectual property crimes, such as music piracy and the sales of counterfeit products can make huge amounts of money. Trademark law and other laws are designed to protect the rights of every person, who creates and innovates. In one music piracy case alone, the subject, who we will call “Angelica” was involved in what appeared to be the low level street sales of pirated music.

I remember myself feeling sorry for her thinking, well she is just trying to make a living and she seemed like such a nice lady. We all know “the ends do not justify the means” and intellectual property crimes hurt us all in so many ways. Angelica appeared to be so nice and unassuming. Well after being arrested a couple of times for selling pirated music on the streets of Los Angeles and being served with over 15 cease and desist notices, law enforcement served a search warrant at her house. Guess what? They found several thousand pirated music CDs, along with $ 40,000 in cash. The cops also found records that Angelica had over $ 700,000 cash in bank accounts and that she owned her $ 300,000 home outright. If that was not enough, turns out that she was on public assistance and obviously not paying her fair share of taxes. During the search, law enforcement also found information and evidence that Angelica was involved in loan sharking activities. This is one of many stories like this.

By Investigative Consultants

L.A. ANTI PIRACY TASKFORCE UPDATE

On December 23, 2008, The Los Angeles Anti Piracy Taskforce held a press conference in Los Angeles. Investigative Consultants assisted the LAPD and LASD in multiple brand protection enforcement actions targeting music piracy and trademark counterfeiters leading up to the conference. The taskforce addressed the issues of intellectual property protection and the need for anti counterfeiting coalitions. There is solid evidence that counterfeiting and piracy funds terrorism and organized crime groups and that is one of the reasons why the counterfeiting laws throughout the United States have been toughened.

The Anti Counterfeiting Group assembled at the conference, included city and county officials, along with various law enforcement officials. The taskforce members spoke about movie piracy statistics and music piracy statistics, along what efforts need to take place to increase intellectual property protection.

Investigative Consultants identified numerous trademark counterfeiting and music piracy operations in the weeks leading up to the press conference. Based on the information provided by Investigative Consultants, law enforcement arrested 32 people for the sales of counterfeit products and music piracy violations. Law enforcement seized over 8 million dollars worth of counterfeit products. Investigative Consultants applauds the work of the taskforce and the anti counterfeiting coalitions.

By Investigative Consultants

GANGS AND COUNTERFEIT GOODS

In 2008, we saw a large increase in cases involving documented gang members being involved in the sales and distribution of counterfeit goods. This trend appears to be growing and it appears that the answer why is simple, low risk, high reward. LASD recently had a counterfeit case involving an El Monte Flores gang member, who had previously been deported from the United States and has close ties to Le Eme. During this case, LASD seized over 2 million dollars worth of counterfeit merchandise, including shoes, perfumes, and sunglasses during their investigation.

The LAPD conducted multiple enforcement actions on a business called Now What Clothing in their Southeast Division. The location was being operated by the East Coast Crips. During the actions, LAPD recovered several handguns, 2 pounds of Marijuana, and a kilo of Methamphetamine. The Southeast Division of LAPD has also had other cases involving the Grape Street Crips and the 4 tray Crips. These cases have involved routine traffic stops and also the gangsters setting up retail stores. It appears that these stores are also being used as a front for the sales of guns and narcotics.

In LAPD’s Central Division, we have seen cases involving MS 13, 18th Street, 42nd Street Little Gangsters, and 36th Street. Most of these cases involved music piracy and luxury goods, such as handbags and sunglasses being sold in and around the Santee Alley area.

The LAPD’s Harbor Vice Unit arrested a Compton Crip, who was selling counterfeit shoes from the trunk of his car in front of a laundry mat. The gangster told law enforcement that he could make good money selling the counterfeit shoes and that no one was going to prison for it. This is the gangster mentality when it comes to selling counterfeit merchandise. Remember, gangsters can make more money selling counterfeit goods than they can selling drugs.

By Investigative Consultants