Arthur Chan Pleads Guilty to Trafficking in Counterfeit Goods

Arthur Chan, 31, of Washington, D.C., pled guilty today to trafficking in counterfeit goods, admitting to a years-long scheme of selling knockoff designer apparel and accessories through eBay. The charges stem from a federal investigation into intellectual property fraud, shining a light on how counterfeit merchandise flows into the U.S. through online marketplaces and unsuspecting consumers.

Chan, who worked as a resources analyst at NASA’s Goddard Space Flight Center in Greenbelt, Md., exploited his position and access to logistical tools while running a parallel criminal enterprise. Between November 2013 and March 2016, he completed approximately 610 sales using two personal eBay accounts, pushing counterfeit items bearing marks identical or nearly indistinguishable from those owned by Hugo Boss. The operation netted him $37,246 in illicit proceeds.

All counterfeit goods were imported from India and shipped to either a UPS Store mailbox in Lanham or his D.C. residence. The items included 113 fake Hugo Boss wallets, 18 counterfeit Ralph Lauren Polo wallets, three Fred Perry wallets, 23 Hugo Boss Polo shirts, two Fred Perry shirts, and packaging mimicking the authentic brands. Law enforcement seized the entire stash during a coordinated takedown.

The case was jointly investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., and the NASA Office of Inspector General—an ironic twist given Chan’s role in a federal science agency. International brand Hugo Boss AG, based in Metzingen, Germany, provided critical assistance in authenticating the counterfeit items and supporting the prosecution.

Chan faces 10 to 16 months in prison under federal sentencing guidelines, with a statutory maximum of 10 years and fines up to $55,000. A forfeiture money judgment of $37,246—equal to his criminal profits—is also part of the plea agreement. Sentencing is scheduled for May 9, 2017, before U.S. District Judge Rosemary M. Collyer.

The prosecution was led by Assistant U.S. Attorney Michael J. Marando, with asset forfeiture support from Special Assistant U.S. Attorney Andrea Duvall. The case underscores the growing crackdown on digital counterfeit trafficking, where federal employees and trusted positions are no shield from prosecution when profit is made off stolen brands and consumer deception.

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