Arthur Chan, Trafficking in Counterfeit Designer Goods, District of Columbia 2016

WASHINGTON, D.C. – Arthur Chan, 31, of Washington, D.C., is trading in space exploration for house arrest. The NASA resources analyst was sentenced today to nine months of home confinement and 180 hours of community service after pleading guilty to trafficking in counterfeit designer goods. The sentence, handed down by Judge Rosemary M. Collyer, also includes one day in jail and 18 months of supervised release. Chan will also forfeit $37,246 – every penny he made off the scheme.

The feds caught onto Chan’s side hustle between November 2013 and March 2016. According to a signed statement of offense, Chan used two personal eBay accounts to push roughly 610 sales of fake Hugo Boss apparel and accessories. This wasn’t some small-time operation; Chan was raking in the cash while employed by the federal government. What’s worse? He used his work computer at NASA’s Goddard Space Flight Center to facilitate the scheme, turning a facility dedicated to reaching for the stars into a command center for knock-off merchandise.

The counterfeit goods weren’t manufactured stateside. Chan imported everything from India, shipping the illicit cargo to a UPS store in Lanham, Maryland, or directly to his residence in D.C. The haul wasn’t limited to clothing. Law enforcement seized a veritable treasure trove of fakes during the investigation: 113 counterfeit Hugo Boss wallets, 18 Ralph Lauren Polo fakes, three Fred Perry imposters, 23 Hugo Boss Polo shirts, and two more Fred Perry knockoffs, all packaged in counterfeit Hugo Boss and Ralph Lauren materials. The total profit? A clean $37,246.

This wasn’t a solo operation in the shadows, but it wasn’t a large-scale conspiracy either. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., and the NASA Office of Inspector General teamed up to bring Chan down. Notably, Hugo Boss AG, the German fashion house, provided crucial assistance to the investigative team, demonstrating the company’s commitment to protecting its brand.

Assistant U.S. Attorney Michael J. Marando prosecuted the case, with Special Assistant U.S. Attorney Andrea Duvall handling the asset forfeiture aspects. The investigation highlights the ongoing threat of counterfeit goods and the willingness of some to exploit their positions – even within federal agencies – for personal gain. Chan’s brief stint as a black market fashion mogul is over, but the case serves as a stark reminder that crime doesn’t recognize a security clearance.

The sentencing of Chan sends a message: even those entrusted with public service aren’t above the law. While home confinement may seem lenient to some, the financial penalty and supervised release should serve as a deterrent. Grimy Times will continue to follow this case and report on any further developments.

MORE FEDERAL CRIME NEWS

White Collar Crime

Chelsea Larvie, Misprison of a Felony, South Dakota 2015

Jun 22, 2015

White Collar Crime

Theodore Harris, Tax Charges, Pennsylvania 2008

Dec 15, 2014

White Collar Crime

Fuentes Orozco, Wire Fraud, Florida 2002

Jan 15, 2002

White Collar Crime

John Devin Ringgold, Money Laundering, Nevada 2003

Jan 15, 2003