SAN JUAN, P.R. — A federal indictment unsealed March 7, 2018, exposes a sprawling counterfeit trafficking ring led by Carlos Enrique Velázquez-Gines, 42, of Manatí, Puerto Rico, alongside co-defendants Mayra Evelise Gines-Otero, 40, Noriam Ivette Flores-Deleon, 45, and Vanessa Marrero-Hernández, 38. The 28-count indictment details a years-long conspiracy to flood American consumers with fake male enhancement pills, counterfeit weight-loss supplements, phony condoms, and knockoff Kylie Cosmetics—all marketed as legitimate while containing undeclared pharmaceutical ingredients and false branding.
The operation ran through online storefronts on eBay.com and Bonanzo.com under the aliases ‘lostchildinpr’ and ‘deleon1988.’ The defendants sold products like XXXplosion, Rhino 12 Titanium, ExtenZe Plus, and Natural Max Slimming Advanced—many laced with sildenafil, the active ingredient in Viagra and Cialis—but failed to disclose it. These unapproved ‘dietary supplements’ were, in fact, unregistered drugs under the Federal Food, Drug, and Cosmetic Act (FDCA), posing serious health risks to unsuspecting buyers across the U.S.
Defendants also distributed counterfeit latex condoms—classified as medical devices under the FDCA—and fake Kylie Lip Kits. FDA analysis confirmed the cosmetics were not manufactured by Kylie Cosmetics and bore counterfeit labels. With no oversight, quality control, or ingredient transparency, the scheme exploited consumer trust for profit, selling dangerous, unregulated products door-to-door via the U.S. Postal Service.
From at least October 3, 2013, the group sourced these counterfeit items from suppliers in China, circumventing customs by shipping packages to a Miami trans-shipper. There, parcels were re-labeled and re-routed to a warehouse at a residence in Villa Blanca, Manatí, where the defendants stored and dispatched orders nationwide. The Miami middleman acted as a shield, helping the ring evade detection by masking the origin of illegal imports.
Velázquez-Gines orchestrated wire transfers to Chinese suppliers, funding the illicit pipeline. The indictment charges all four with conspiracy to commit mail and wire fraud, mail fraud, trafficking in counterfeit goods, introducing misbranded articles into interstate commerce, distribution of a controlled substance, international money laundering, and smuggling. The operation didn’t just deceive—it endangered lives.
The investigation was led by the FDA’s Office of Criminal Investigations, Homeland Security Investigations, and U.S. Postal Inspectors, with support from Customs and Border Protection and the Puerto Rico Department of Treasury. U.S. Attorney Rosa Emilia Rodríguez-Vélez emphasized that selling counterfeit medical products is not a victimless crime: ‘These defendants sold counterfeit and dangerous substances under false pretenses, putting American consumers at risk.’ The case continues in the U.S. District Court for the District of Puerto Rico.’
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Key Facts
- State: Puerto Rico
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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