Washinton D.C., May 7, 2012 – The Criminal Division of the U.S. government has seized over $1.5 million in proceeds from the distribution of counterfeit sports apparel and jerseys as a result of an investigation into the sale of counterfeit goods on commercial websites, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr. and John Morton, Director of the Department of Homeland Security’s Immigration and Customs Enforcement (ICE).
The investigation also resulted in the seizure of three domain names used in the sale of counterfeit sports apparel. The funds were seized from interbank accounts and six money service business accounts. The seizure warrants were unsealed in U.S. District Court in the District of Columbia on May 7, 2012.
The developments are the latest result of Operation In Our Sites, a law enforcement initiative targeting online commercial intellectual property crime announced by ICE’s Office of Homeland Security Investigations (HSI) in June 2010. Operation In Our Sites targeted online retailers of a diverse array of counterfeit goods, including sports equipment, shoes, handbags, athletic apparel, sunglasses and DVD boxed sets.
To date, 761 domain names of websites used in the sale and distribution of counterfeit goods and illegal copyrighted works have been seized as a result of Operation In Our Sites. Additionally, last month, the U.S. government seized more than $896,000 in proceeds from the sale of counterfeit sports apparel on commercial websites as part of Operation In Our Sites.
According to court documents, investigation by federal law enforcement agents revealed that subjects whose domain names had been seized in a November 2010 In Our Sites operation continued to sell counterfeit goods using new domain names. In particular, the individuals, based in China, sold counterfeit professional and collegiate sports apparel, primarily counterfeit sports jerseys. Law enforcement agents made numerous undercover purchases from the websites associated with the new domain names. After the goods were confirmed to be counterfeit or infringing, seizure warrants for three domain names used to sell the infringing goods were obtained from a U.S. Magistrate Judge in U.S. District Court for the District of Columbia.
The individuals conducted sales and processed payments for the counterfeit goods using money service business accounts and then wired their proceeds to bank accounts held at a Chinese bank, the court documents state. Under warrants issued by a U.S. District Judge, law enforcement agents seized $1,455,438.72 in proceeds that had been transferred from the money service business accounts to various bank accounts in China. The funds were seized from correspondent, or interbank, accounts held by the Chinese bank in the United States.
Under additional seizure warrants issued by a U.S. Magistrate Judge, law enforcement agents also seized $94,730.12 in funds remaining in six money service business accounts used by the subjects. ‘The seizures we are announcing today are another step forward in our efforts to disrupt and disable those engaged in intellectual property crime,’ said Assistant Attorney General Breuer. ‘By seizing the domain names and profits of online counterfeit goods operations, we are protecting consumers and sending a message to criminals that we will use every tool at our disposal to stop them.’
Defendant: Unknown (no real defendant name provided)
Criminal Charges: Conspiracy to commit trademark counterfeiting, trademark counterfeiting; Conspiracy to commit money laundering, money laundering
City and State: Washington D.C.
Exact Date: May 7, 2012
Sentence or Outcome: $1,455,438.72 seized from interbank accounts and $94,730.12 from money service business accounts
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Key Facts
- State: District of Columbia
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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