Daye Dong, 49, and Hongyu Chen, 48, both of Bayside, New York, were arrested this morning and charged in Manhattan federal court with conspiring to traffic in counterfeit luxury goods. The married pair allegedly orchestrated a four-year operation smuggling knockoff handbags, wallets, and designer accessories from China into the United States for distribution across New York City, including through a Manhattan retail store operated by Chen.
Federal and NYPD officers executed search warrants on October 27, 2016, raiding the couple’s residence, two storage warehouses, and their retail outlet. Inside, they seized more than 30,000 counterfeit items bearing the logos of high-end fashion brands—stuffed into boxes, stacked on shelves, and ready for sale. The goods were not just imitations; investigators say they were deliberately marketed and sold as authentic to unsuspecting retailers and consumers.
Dong and Chen each face one count of conspiring to traffic in counterfeit goods and one substantive count of trafficking. Each charge carries a maximum sentence of 20 years in prison—a penalty set by Congress, though actual sentencing would be determined by the presiding judge if the defendants are convicted. U.S. Magistrate Judge Kevin Nathaniel Fox is scheduled to oversee their initial court appearance later today.
Preet Bharara, then-U.S. Attorney for the Southern District of New York, slammed the operation as a direct assault on intellectual property rights and legitimate commerce. “These defendants allegedly sold counterfeit goods, fueling consumers’ desire for low prices on high-end products,” Bharara said. “But the cheap prices come at a high price for legitimate businesses.”
HSI Special Agent in Charge Angel M. Melendez rejected the notion that counterfeiting is a victimless crime. “Individuals like those charged today are allegedly robbing from law-abiding merchants and from the legitimate companies that manufacture these items,” Melendez said. “Brand-name knockoffs are not a harmless way to beat the system.”
CBP Director Robert E. Perez and NYPD Commissioner James P. O’Neill echoed the sentiment, praising interagency cooperation that led to the takedown. “This sale of counterfeit merchandise is a scheme as old as crime itself,” O’Neill said. The case is being prosecuted by Assistant U.S. Attorney Jonathan E. Rebold of the Office’s General Crimes Unit. The defendants remain presumed innocent until proven guilty in a court of law.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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