ICE and CBP's "Operation Red Zone" Seizes $13.6 Million Worth of Counterfeit NFL Merchandise

Speaking at a National Football League (NFL) news conference Thursday, January 31, 2013, U.S. Immigration and Customs Enforcement (ICE) Director John Morton and NFL Vice President for Legal Affairs Anastasia Danias announced the record-breaking results of a nationwide enforcement operation. The initiative, dubbed 'Operation Red Zone,' commenced Sept. 1, 2012, and targeted international shipments of counterfeit merchandise as it entered the United States. Authorities targeted warehouses, stores, flea markets, online vendors and street vendors selling counterfeit game-related sportswear and tickets throughout the country.

Fake jerseys, ball caps, T-shirts, jackets and other souvenirs are among the counterfeit merchandise and clothing confiscated by teams of special agents and officers from ICE's Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service, and state and local police departments around the country - all in partnership with the NFL and other major sports leagues.

"The Super Bowl is one of the nation's most exciting events. Organized criminals are preying on that excitement, ripping consumers off with counterfeit merchandise and stealing from the American businesses who have worked hard to build a trusted brand," said Morton. "The sale of counterfeit jerseys and other sports items undermines the legitimate economy, takes jobs away from Americans and fuels crime overseas. No good comes of counterfeiting American products - whether NFL jerseys, airbags, or pharmaceuticals - and we must go after the criminals behind it."

'Hard goods' seizures

Special agents from HSI and officers with CBP operated in multiple teams with the NFL and law enforcement agencies throughout the nation to identify illegal shipments imported into the U.S., as well as stores and vendors selling counterfeit trademarked items. With only days left before Super Bowl XLVII, these teams have already seized more than 160,000 items of phony Super Bowl-related memorabilia along with other counterfeit items for a total take of more than $13.6 million. Due to the increased activity of counterfeiting operations around the world, this year the operation began Sept. 1, 2012, and will continue through Feb. 6, 2013.

"We're delighted to once again partner with federal law enforcement to help combat the influx of counterfeit merchandise," said Danias. "We are grateful for their tireless efforts to keep counterfeiters from illegally profiting off of the fans' enthusiasm for their team and the Super Bowl and from hurting the local businesses that play by the rules."

"In collaboration with the NFL and our (Department of Homeland Security) partners, we are providing critical support in the effort to protect consumers from counterfeit goods," said Robert C. Gomez, director of field operations in Atlanta and New Orleans for CBP. "The enforcement of iintellectual property rights is a national agency priority, and our CBP officers and import specialists are actively working to intercept these products. Counterfeit merchandise hurts our economy and, in many cases, presents safety issues. It is a potential source of funding illegal activities that present a threat to our national security."

Arrests

In September 2012, HSI Boston - assisted by HSI Providence - executed a search warrant at a residence in Warwick, R.I. HSI seized 226 boxes of counterfeit goods containing 4,016 sports jerseys with a manufacturer's suggested retail price (MSRP) of $724,340 and approximately $477,000 worth of additional counterfeit goods, as well as $130,057 in U.S. currency and checks. The owner of the home was subsequently arrested and is currently facing federal charges of trafficking in counterfeit goods and smuggling.

In November 2012, HSI Indianapolis special agents responded to a call from Indiana State Fairgrounds Security that an individual at the Indianapolis International Fest was selling items suspected to be counterfeit. Upon arriving at the festival, the special agents were able to verify the goods to be counterfeit and seized 1,319 counterfeit sports ball caps from the individual with an MSRP of $30,095 and approximately $7,600 worth of additional counterfeit goods. HSI arrested the man for illegally trafficking in counterfeit merchandise. 

Twenty-one other individuals were arrested in partnership with state and local law enforcement
agencies on state charges at locations around the country.

Website seizures

Furthering HSI's efforts to combat the international counterfeiting supply chain and piracy online, special agents seized a total of 313 websites identified to be selling counterfeit merchandise.

The website seizures during Operation Red Zone are the next iteration of Operation In Our Sites, a long term law enforcement initiative targeting counterfeiting and piracy on the Internet. The 313 websites have been seized by law enforcement, and are now in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime. Since the launch of Operation In Our Sites in June 2010, the ICE HSI-led Intellectual Property Rights (IPR) Center has seized a total of 2,061 domain names.

HSI has continued to work closely with payment processor PayPal to identify bank accounts being used to facilitate the transfer of money to these illegal operations. To date, PayPal and HSI have identified and seized more than $66,000 in assets in these accounts.

"PayPal and eBay Inc. pride ourselves in going above and beyond in the fight against the illegal online trafficking of counterfeit goods by partnering with law enforcement and rights owners globally, and as part of providing safe and trusted payments and commerce platforms," said Tod Cohen, eBay's vice president and deputy general counsel of government relations.

Operation Red Zone continues

Operation Red Zone will continue this weekend at the Super Bowl, throughout the New Orleans-area and around the nation.

The operation was spearheaded by the IPR Center in coordination with the Department of Justice's Computer Crime and Intellectual Property Section and five U.S. Attorneys' Offices, including the District of Maryland, District of New Jersey, District of Colorado, Eastern District of Louisiana and the District of Utah.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety and the U.S. economy.

Operation Bitter Pill Shuts Down 686 Counterfeit Pharmaceutical Websites

In the largest operation of its kind, 100 countries took part in an international week of action targeting the online sale of counterfeit and illegal medicines. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), in coordination with the Department of Justice, seized 686 websites the week ending in October 5, 2012, that were illegally selling counterfeit pharmaceuticals.

The seizures were part of Project Bitter Pill, the current effort under of Operation In Our Sites (IOS). Bitter Pill was part of the INTERPOL-led Operation Pangea V.

A global enforcement effort, Pangea is an annual operation aimed at disrupting the organized crime networks behind the illicit online sale of fake drugs. Worldwide, preliminary results show Pangea has accounted for 79 arrests and the seizure of 3.7 million doses of potentially life-threatening counterfeit medicines worth an estimated value of $10.5 million.

Additionally, approximately 18,000 websites engaged in illegal sale of counterfeit drugs were taken down.

During Pangea V, which ran from Sept. 25 to Oct. 2, operations were conducted in Europe and throughout the United States at websites linked to the illegal Internet supply of medicines. U.S. Customs and Border Protection (CBP) intercepted packages that were believed to contain fake or illicit drugs. Various payment processing companies supported the operation by identifying and blocking payments connected to illicit online pharmacies, identifying individuals responsible for sending spam emails and identifying abuse of electronic payment systems.

"These international partnerships are essential in the global fight against the trafficking of counterfeit drugs," said ICE Director John Morton. "Instead of taking potentially life-saving medicines, customers are duped into purchasing drugs that are fake or untested and could ultimately do them more harm than good."

Pangea is coordinated by INTERPOL, the World Customs Organization, the Permanent Forum of International Pharmaceutical Crime, the Heads of Medicines Agencies Working Group of Enforcement Officers, Pharmaceutical Security Institute, and Europol. For the first time, Pangea was also supported by the Center for Safe Internet Pharmacies which brings together 12 of the world's leading Internet and e-commerce companies.

"When someone is sick, can't afford to purchase expensive medicine or is just trying to save money, they are more likely to take a chance and buy medicines online, making themselves vulnerable to purchasing fake, illicit or spurious medical products and thus harming themselves," said INTERPOL Secretary General Ronald K. Noble. "Organized, sophisticated criminals and rogue pharmacies are unfortunately using the Internet to defraud innocent consumers, to place them in harm's way, to steal their identities and to engage in credit card fraud."

The goals of this operation were to disrupt the illegal distribution of medicines and to raise public awareness about the significant health risks associated with buying medicines online and the increased risk of becoming a victim of identity and credit card fraud.

Bitter Pill, the U.S. operation, was managed by the National Intellectual Property Rights Coordination Center (IPR Center), including HSI Baltimore, CBP, the U.S. Attorney for the District of Maryland, and the Computer Crime Intellectual Property Section of the Department of Justice Criminal Division. The Food and Drug Administration, Office of Criminal Investigations and the Federal Bureau of Investigation also participated in Pangea and supported Bitter Pill.

"Interdiction of illegal pharmaceuticals is one of CBP's top priorities," said CBP Deputy Commissioner David V. Aguilar. "The rise of Internet pharmaceutical sale sites has resulted in increases of imported packages containing illegal medications, which is a risk to U.S. consumers. CBP is proud to be a part of this effort."

IOS is a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. Those websites are now shut down and their domain names are in the custody of the federal government. Visitors to the websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of trafficking in counterfeit goods.

The 686 domain names seized during Bitter Pill bring the total number of IOS domain names seized in the last two years to 1,525. The domain names are subject to forfeiture under federal laws that afford individuals who have an interest in the seized domain names a period of time after the "Notice of Seizure" to file a petition with a federal court and additional time after the "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.

During this project, HSI special agents made undercover purchases of counterfeit drugs from multiple websites. The counterfeit drugs seized during Bitter Pill included anti-cancer medication, antibiotics and erectile dysfunction pills as well as weight loss and food supplements. Investigations are ongoing as special agents continue to connect shipments and websites with organized criminal networks.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting, piracy and commercial fraud. As a task force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft and commercial fraud. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.

5 Plead Guilty to Counterfeit Trade and Intellectual Property Theft Conspiracy

Five individuals have pleaded guilty to conspiring to import misclassified merchandise. Each faces up to five years in federal prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

"The trademark laws in the United States were created to protect the investment of American manufacturers such as Nike as well as consumers," said U.S. Attorney William J. Hochul Jr., Western District of New York. "These laws are designed to create a level playing field for businesses and protect consumers who might unwittingly purchase inferior counterfeit goods. Our office will continue to aggressively enforce customs laws for the benefit of American businesses and those who purchase their products."

"Selling counterfeit goods is stealing," said James C. Spero, special agent in charge of HSI Buffalo. "HSI is committed to ensuring the legitimate copyright holders are protected from individuals who are only motivated by greed. People and organizations which produce and sell counterfeit products undermine the U.S. economy; create inferior and sometimes dangerous products; and jeopardize public safety."

Xiao Cheng Lin, 50, and his wife, Ling Zhen Hu, 51, both of New York, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to import misclassified merchandise. Hu, a native of China, worked for an individual who imported thousands of pairs of sneakers from China that bore the Nike "swoosh" logo and Nike labeling, but were not genuine Nike sneakers. Hu then negotiated the sale of large quantities of the mislabeled sneakers to Malik Bazzi, 44, of Montreal, who then sold them to customers throughout the United States - including in Buffalo - via his warehouses in Manhattan and Brooklyn. Bazzi is currently scheduled to be sentenced Feb. 1, 2013. Hu admitted that she negotiated the sale of 7,500 pairs of sneakers to Bazzi.

Lin, also a native of China, worked with his wife, delivering the 7,500 pairs of sneakers to Bazzi. The HSI investigation revealed that Bazzi's customers then sold the counterfeit Nike sneakers on the street and in retail stores to customers for about half the price of genuine Nike sneakers.

As part of their plea agreements, both Lin and Hu agreed to abandon any claim to more than $600,000 and dozens of pairs of counterfeit sneakers seized from their New York residence following their 2007 arrest.

The defendants were arrested along with 21 others. To date, 20 of the defendants have been convicted.

On Sept. 5, 2012, LaKeith Fowler, 32, of Dallas, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Fowler, one of Bazzi's customers, purchased and sold approximately 12,000 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Fowler sold the sneakers in a retail store he owned in the Dallas-area. As part of his plea agreement, Fowler agreed to forfeit two bank accounts to the government which contain over $44,000 in deposits. The accounts were used to conduct counterfeit sneaker transactions.

On Sept. 7, 2012, Davion Briant, 37, of Milwaukee, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Briant, another of Bazzi's customers, purchased and sold approximately 4,500 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Briant owned a retail store in the Milwaukee-area where he sold the counterfeit sneakers.

On Sept. 10, 2012, Hussien Sara, 30, of New York, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Sara worked in Bazzi's warehouses where, on behalf of Bazzi, he took delivery of over 13,000 pairs of counterfeit sneakers from several suppliers, including Hu and Lin. In addition, Sara assisted in packaging the sneakers for shipment to Bazzi's customers located throughout the United States.

Lin and Hu will be sentenced Jan. 24, 2013; Fowler Dec. 14, 2012; Briant Jan. 7, 2013; and Sara Jan. 11, 2013. All will be sentenced by Judge Arcara in Buffalo.

As the largest investigative arm of the Department of Homeland Security, HSI plays a leading role in targeting criminal organizations responsible for producing, smuggling and distributing counterfeit products. HSI focuses not only on keeping counterfeit products off our streets, but also on dismantling the criminal organizations behind such illicit activity.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting/piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

Assistant U.S. Attorney John E. Rogowski, Western District of New York, is prosecuting this case on behalf of the U.S. government.

ICE Holds Symposium to Combat American Brand Theft and Merchandise Counterfeit

Brand holders and intellectual property rights experts with U.S. Immigration and Customs Enforcement (ICE) led an all-day symposium Thursday, August 23, 2012, aimed at combating brand theft and merchandise counterfeiting.

The one-day event hosted by ICE's National Intellectual Property Rights Coordination Center (IPR Center) was held at the Ohio Bureau of Criminal Investigation's police academy in Richfield.

"Events like these are a key element in the overall strategy to protect American brands and jobs," said Brian M. Moskowitz, special agent in charge of ICE's Homeland Security Investigations (HSI) Michigan and Ohio. "Educating the public and industry is an important force multiplier in the effort to fight intellectual property rights theft."

The event included presentations from Amber Lilly, Deere and Company, maker of John Deere-branded products; Underwriter Laboratories; and other brand holders.

The symposium centered on actions taken by both the U.S. government and those in the IP industry to combat counterfeit merchandise and intellectual property rights violations. Break-out sessions discussed current trends in counterfeiting, emerging threats, as well as detection methods and best practices in enforcement.

HSI special agents also cited case examples that linked IP theft with other criminal activity. Brand protection officers from several corporations provided information on threat detection and other investigative techniques.

A key message stressed at the event was that counterfeiting and brand theft can result in significant criminal and civil penalties.

Conspiracy to traffic counterfeit goods carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss resulting from the conspiracy. The maximum penalty for each count of trafficking in counterfeit goods is punishable by up to 10 years in prison and a $2 million fine. Counterfeit goods are also subject to seizure and destruction and proceeds derived from such criminal activity are subject to forfeiture.

The IPR Center is a major player in the fight against criminal counterfeiting (piracy). In May, the center rolled out a new anti-piracy warning that will be featured in forthcoming DVDs and Blue Ray releases, replacing the former warning.

As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and American warfighters.

ICE is the federal government's lead agency investigating intellectual property theft. The International Anti-Counterfeiting Coalition estimates that counterfeiting costs U.S. businesses between $200 and $500 billion each year and more than 750,000 American jobs.

Two Illinois Women Sentenced for Counterfeit Luxury Ring

Two women were sentenced in federal court Monday, August 13, 2012, for conspiring to traffic counterfeit merchandise in the Rockford, Ill., area. The sentences resulted from a joint investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bloomington Police Department, and the U.S. Postal Inspection Service.

Jannette Grant, 51, of Bloomington, Ill., and Kimberly Nein, 50, of Argenta, Ill., who did business as "The Purse Lady," were sentenced Aug. 13 for trafficking in counterfeit goods. U.S. District Judge Joe Billy McDade, Central District of Illinois, sentenced Grant to 36 months in federal prison; and sentenced Nein to serve 24 months in federal prison. Both women were ordered to pay $3,879 restitution. They will report to the Bureau of Prisons Oct. 9 to begin serving their respective prison terms.

On April 25, Grant and Nein each waived indictment and pleaded guilty to operating a business known as "The Purse Lady" that sold counterfeit items bearing various trademarks, including: Coach, Kate Spade, Dolce & Gabbana, Chanel, Dooney & Bourke, Prada, Tiffany & Co., and others. Goods were sold throughout central Illinois, including at various businesses, home parties, also known as "purse parties," through the mail, and at an Argenta warehouse owned by Nein.

Grant and Nein admitted they regularly traveled to Chicago and New York to purchase inventory. According to court documents, Grant and Nein advertised their items for sale as "replica/knockoff," and stated that all references to brands were for "entertainment and novelty purposes only," and "these companies are not affiliated with us in any way."

During search warrants executed by law enforcement officers May 12 at Grant's home and at Nein's Argenta warehouse, officers recovered more than 15,000 counterfeit items with a total estimated manufacturer's suggested retail price of about $1.6 million. The seized luxury goods included 2,000 purses, 900 wallets, 400 sunglasses, 10,900 emblems and medallions, and other items.

Officers recovered various items that Grant surrendered, including a 2008 Dodge Caravan, a 2003 BMW, and $18,052 in currency at her home. Officers also recovered $4,487 from the business's bank account and $80,000 held in a safe deposit box. Grant previously agreed to forfeit $47,522, the amount Grant had paid on two homes in Bloomington, Ill., in lieu of forfeiting real estate.

Assistant U.S. Attorney Darilynn J. Knauss, Central District of Illinois, prosecuted this case.

Three Men Sentenced for Food-Stamp Fraud and Selling Counterfeit Goods

Three local men were sentenced in federal court Thursday, August 2, 2012, for selling counterfeit clothes, shoes and merchandise in the Rockford area. These sentences resulted from a joint investigation into food-stamp fraud and counterfeit merchandise sales conducted by the following agencies: U.S. Department of Agriculture's Office of Inspector General, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI, the Internal Revenue Service's Criminal Investigation Division, and the Rockford Police Department.

Two brothers, Abdul Hariz, 23, and Mohammad Hariz, 21, of Rockford, each pleaded guilty Feb. 8 to conspiring to sell counterfeit shoes and apparel. According to their plea agreements, they sold counterfeit merchandise at the Fashion Show store in Rockford between Aug. 19 and Dec. 14, 2010.

Mohammad Hamad, 44, was charged in a separate indictment and pleaded guilty March 8 to selling counterfeit goods at the Westside Groceries store in Rockford Oct. 21, 2010. In his plea agreement, Hamad admitted that he was part owner of Westside Groceries. He also admitted that his store employees improperly allowed an individual cooperating with law enforcement officers to use a LINK card (food stamp benefits) to purchase counterfeit shoes.

All three defendants were sentenced Aug. 2 by U.S. District Judge Frederick J. Kapala to five months in federal prison followed by three years of supervised release. During the first five months of their supervised release, each defendant will be placed on home confinement with electronic monitoring. After they complete their home confinement, each defendant must then serve the remaining 31 months of supervised release. All three defendants were ordered to pay full restitution to the victims of their crimes, and to repay the government for the costs incurred in the undercover investigation. Hamad was also sentenced to pay a $5,000 fine.

As a result of the investigation, five other Rockford men were charged in federal court with offenses relating to food stamp fraud (LINK cards). Those five men have pleaded guilty and have already been sentenced.

Assistant U.S. Attorney John G. McKenzie, Northern District of Illinois, prosecuted the case.

ICE and HSI Crackdown on Cyber Intelligence Theft

U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) -led National Intellectual Property Rights Coordination Center (IPR Center) seized 70 websites that were illegally selling counterfeit merchandise.

The 70 websites seized are part of Project Copy Cat, an iteration of Operation In Our Sites (IOS), and closely mimicked legitimate websites selling authentic merchandise and duped consumers into unknowingly buying counterfeit goods. Many of the websites so closely resembled the legitimate websites that it would be difficult for even the most discerning consumer to tell the difference.

The websites are now shut down and their domain names are in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of willful copyright infringement.

"This operation targeted criminals making a buck by trying to trick consumers into believing they were buying name brand products from legitimate websites when in fact they were buying counterfeits from illegal but sophisticated imposter sites located overseas," said ICE Director John Morton. "The imposter sites were simply a fraud from start to finish and served no purpose other than to defraud and dupe unwary shoppers."

A new twist in the websites seized in Project Copy Cat involved the appearance of Secure Sockets Layer (SSL) certificates. SSL certificates provide authentication for financial information, meaning consumers should be able to trust that they are sending information to the intended server and not to a criminal's server. Trusted SSL providers should only issue SSL certificates to verified companies that have gone through several identity checks. In addition to providing authentication, SSL certificates also provide encryption, enhancing the security of credit card numbers, usernames, passwords and other sensitive information. These websites, however, displayed SSL certificates, further duping the consumer into thinking they were shopping on a legitimate website, potentially putting customers' financial information at risk.

During this operation, federal law enforcement officers made undercover purchases of a host of products, including baby carriers, professional sports jerseys, language and fitness DVD sets, and a variety of clothing, jewelry and luxury goods from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the copyright holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods were obtained from federal magistrate judges.

"Every day the U.S. economy and American jobs are negatively impacted by criminal organizations engaged in the sale of counterfeit merchandise through rogue websites. Even more importantly, consumer's health and safety can be threatened when they unknowingly purchase counterfeit products," said IPR Center Director Lev Kubiak. "Our goal at the IPR Center is to protect the public's safety and economic welfare through robust intellectual property enforcement and we hope that today's enforcement actions raise the public's awareness to this pervasive crime."

This operation was the next phase of IOS, a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. These 70 domain name seizures bring the total number of IOS domain names seized in the last two years to 839. This enforcement action coincides with the two-year anniversary of the 2010 launch of IOS. Since then, the seizure banner has received more than 103 million individual views.

Of the 769 previous domain names seized, 229 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in seized domain names a period of time after a "Notice of Seizure" to file a petition with a federal court and additional time after a "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become the property of the U.S. government. Additionally, a public service announcement, launched in April 2011, is linked from the seizure banner on each of the 229 forfeited websites. This video educates the public about the economic impact of counterfeiting.

The operation was spearheaded by the IPR Center in coordination with HSI field offices in Denver, El Paso, Houston, Newark and Salt Lake City. U.S. Attorney's Offices in the Western District of Texas, Southern District of Texas, District of New Jersey, District of Colorado and the District of Utah issued the warrants for the seizures. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. The IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

During the first phase of IOS in 2010, the IPR Center received information from the Motion Picture Association of America that a website, www.ninjavideo.net (Ninja Video), was illegally distributing pirated copies of motion pictures and other audiovisual works. Ninja Video provided its millions of visitors the ability to illegally download high quality copies of copyrighted movies including movies that were currently in theaters or not yet released.

Following the seizure of the website, search warrants were executed at the residences of the primary suspects in the United States and funds were seized from 15 separate financial accounts. To date, the Ninja Video investigation has resulted in the arrest and conviction of five of the six co-conspirators with sentences ranging from 22 months in federal prison to three years of probation with a combined restitution exceeding $470,000 to the victims. A sixth co-conspirator remains a fugitive. In addition to Ninja Video, IOS phase one also targeted eight other websites selling counterfeit merchandise in New York.

Previous website seizures include:

·                             First phase: 9 domain names

·                             Second phase: 83 domain names

·                             Third phase: 10 domain names

·                             Fourth phase: 18 domain names

·                             Fifth phase: 5 domain names

·                             Sixth phase: 17 domain names

·                             Seventh phase: 58 domain names

·                             Eight phase: 156 domain names

·                             Ninth phase: 10 domain names

·                             Tenth phase: 385 domain names

·                             Salt Lake City: 7 domain names

·                             Sustained Effort: 11 domain names

These cases are part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

Indictment for Five Individuals in Counterfeit Ring

A federal grand jury has indicted five individuals related to a conspiracy to traffic in counterfeit goods, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

On Sunday, April 22, HSI Baltimore special agents arrested the following men charged in the indictment: Tidiane Ba, 44; Mamadou Lamine Ba, 51; Abass Baro, 44 and Sakho Oumar, 33, all of Baltimore. The fifth defendant charged in the indictment, Baba Toure, 39, also of Baltimore, is still being sought. The indictment was returned April 18 and unsealed today. The defendants each face a maximum sentence of 10 years in prison and a fine of $2 million. Tidiane Ba, Mamadou Lamine Ba, Abass Baro and Sakho Oumar had an initial appearance April 23 and were released under the supervision of U.S. Pretrial Services. No other court date is currently scheduled.

According to the six count indictment, from October 2011 through April 2012, the defendants operated in and around Baltimore, including at the Patapsco Flea Market, selling counterfeit purses, handbags, shoes, watches, hats and other items by luxury manufacturers such as Michael Kors, Coach, Gucci, Dolce & Gabbana, Louis Vuitton and Jimmy Choo. According to the indictment, the counterfeit goods bore the trademarks registered by victim companies with the U.S. Patent and Trademark Office. The indictment alleges that packages were received from merchandise suppliers in New York City and storage units were rented to store the counterfeit trademarked merchandise. According to court documents, HSI special agents seized counterfeit goods from the defendants on several occasions during the course of the investigation.

Four defendants were arrested Sunday, April 22, 2012, after HSI special agents executed search warrants at two residences and two storage units, seizing counterfeit items and cash.

As the largest investigative arm of the Department of Homeland Security, HSI plays a leading role in targeting criminal organizations responsible for producing, smuggling and distributing counterfeit products. HSI focuses not only on keeping counterfeit products off our streets, but also on dismantling the criminal organizations behind such illicit activity.

HSI manages the IPR Center in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

This indictment is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The case is being prosecuted by Assistant U.S. Attorney Justin Herring and Special Assistant U.S. Attorney Christine Duey.

ICE Seizes Almost $900,000 in Counterfeit Goods at Texas Flea Market

Special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Sunday, April 15, seized nearly 20,000 counterfeit items with a manufacturer's suggested retail price (MSRP) of nearly $900,000, at the local Fox Plaza flea market.

The enforcement operation was part of the continuing efforts of HSI's Commercial Fraud Group, and the Southwest Border Financial Operations and Currency United Strike Force (FOCUS) to track down individuals who sell counterfeit and pirated products.

It took HSI special agents a few days to count the following seized items and identify the MSRP:

·                             8,911 DVDs with an MSRP of $122,210.72;

·                             10,669 CDs with an MSRP of $128,454.76; and

·                             1,728 items, including handbags, NFL merchandise and NIKE-brand sneakers with an MSRP of   $648,409.15.

A total of 21,308 items were seized with an MSRP of $899,074.63.

The following Border Enforcement Task Force members also participated in the operation; U.S. Customs and Border Protection, the Texas Alcohol and Beverage Commission, and the El Paso Sheriff's Department. Trademark representatives were on site to authenticate merchandise. Representatives of the Recording Industry Association of America and the Motion Picture Association of America also assisted.

"Counterfeiting is a significant problem that affects our economy, impacts American jobs, and puts the public's health and safety at risk," said Dennis A. Ulrich, special agent in charge for HSI El Paso. "Consumers who buy pirated products may also be funding criminal organizations with their purchases."

Operations such as the one conducted at the Fox Plaza Flea Market are coordinated through the HSI-led National Intellectual Property Rights Coordination Center, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.