NEWARK, N.J. – Nine members of a massive, international counterfeit goods conspiracy have admitted their roles in the scheme, according to court documents and statements made in Court.
Hai Dong Jiang, 37, and Fei Ruo Huang, 37, both of Staten Island, N.Y.; Hai Yan Jiang, 34, of Richardson, Texas; Xiance Zhou, 39, and Jian Chun Qu, 33, both of Bayside, N.Y.; and Ming Zheng, 48, of New York, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court.
Wei Qiang Zhou, 38, of Brooklyn, N.Y., pleaded guilty Dec. 3, 2013, Patrick Siu, 41, of Richardson, Texas, pleaded guilty Dec. 4, 2013, and Da Yi Huang, 43, of Staten Island, pleaded guilty Dec. 11, 2013, all before Judge Salas in Newark federal court, to informations charging them each with one count of conspiracy to traffic in counterfeit goods.
The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The counterfeit goods were manufactured in China and smuggled into the United States through containers fraudulently associated with legitimate importers, with false and fraudulent shipping paperwork playing a critical role in the smuggling scheme.
The conspirators paid large amounts of cash to undercover law enforcement officers to assist in the removal of counterfeit goods from the port. Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. Other conspirators were money structurers, who arranged for cash to be wired to China in amounts small enough to avoid applicable financial reporting requirements, to evade detection of the smuggling scheme and related proceeds.
Law enforcement introduced several undercover special agents (collectively, the UCs) to the conspirators. The UCs purported to have unspecified “connections” at the port, which allowed the UCs to release containers that were on hold, and pass them through to the conspirators. The conspirators paid the UCs for these “services.” In total, during the course of this investigation, the conspirators provided the UCs more than $2 million.
UCs recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Patrick Siu, a/k/a “Sam Huang,” facilitated the importation and distribution of counterfeit goods, by serving as the “hub” for communications between customs brokers, UCs, and the conspirators. Siu sent false and fraudulent shipping documents to customs brokers, who then cleared the counterfeit goods for importation.
The individual defendants pleaded guilty to the following charges:
Hai Dong Jiang, Fei Ruo Huang, Hai Yan Jiang: Conspiracy to traffic in counterfeit goods.
Xiance Zhou, Jian Chun Qu: Conspiracy to structure money.
Ming Zheng: Conspiracy to launder money.
Wei Qiang Zhou, Patrick Siu, Da Yi Huang: Conspiracy to traffic in counterfeit goods.
The maximum penalty for each conspiracy count is five years in prison and a $250,000 fine.
The case was investigated by the U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, and the U.S. Secret Service.
The charges are mere allegations. The defendants are presumed innocent until proven guilty in a court of law.
Full names of defendants: Hai Dong Jiang, Fei Ruo Huang, Hai Yan Jiang, Xiance Zhou, Jian Chun Qu, Ming Zheng, Wei Qiang Zhou, Patrick Siu, Da Yi Huang.
Defendants’ real full name or legal entity name: Yes.
Exact criminal charges: Conspiracy to traffic in counterfeit goods, conspiracy to structure money, conspiracy to launder money.
City and state: Newark, N.J.
Exact date with month/day/year: November 2009 through February 2012 (conspiracy period), Dec. 3, 2013, Dec. 4, 2013, Dec. 11, 2013 (sentencing dates).
Sentence or outcome: The defendants are awaiting sentencing.
Dollar amounts where applicable: $300 million (retail value of goods), $2 million (paid to UCs).
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Key Facts
- State: New Jersey
- Category: Organized Crime
- Source: DOJ Press Release â†â€â€
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