Robert Erie, Counterfeit Goods Trafficking, California 2017

Grimy Times has learned that Robert Erie, the former Chief Executive Officer and co-founder of E-World Recyclers, LLC, has been sentenced to 21 months in federal custody for trafficking in counterfeit goods. Erie’s conviction relates to a contract he obtained to destroy counterfeit merchandise seized by the federal government.

According to court documents, instead of destroying or ‘e-recycling’ the counterfeit goods as he was required to do, Erie diverted the merchandise and trafficked in it for commercial advantage. E-World Recyclers, an electronic recycling service company based in Vista, California, received a sub-contract to perform electronic recycling services related to counterfeit goods seized by the Department of Homeland Security’s Bureau of Customs and Border Protection.

Between November 4, 2009, and December 18, 2009, E-World received approximately 38 shipments containing approximately 1,888 pallets of counterfeit goods. Erie instructed E-World employees to sign documents certifying the destruction of the counterfeit goods, but in reality, he had diverted some of the goods to his personal storage unit in San Marcos, California.

On December 24, 2009, Erie rented a personal storage unit and transported some of the counterfeit goods, including watches bearing counterfeit marks related to luxury brands, to the storage unit. The storage unit was later searched by federal agents, who seized 2,275 counterfeit watches, 524 counterfeit pens, and 12 counterfeit headphones.

Erie also trafficked in the counterfeit merchandise for his own commercial advantage, sending at least four separate shipments of counterfeit watches to business associates in Ohio. In an attempt to thwart the prosecution, Erie altered e-mails to suggest that he had permission to redistribute the counterfeit goods.

U.S. District Judge Anthony J. Battaglia imposed a two-level upward adjustment for obstruction of justice based on Erie’s alteration of e-mails. Erie’s sentencing is a significant victory for law enforcement and highlights the importance of vigilance in overseeing government contractors.

Amanda Thandi, Special Agent in Charge, U.S. Department of Homeland Security, Office of Inspector General, San Diego Field Office, noted that the collaborative investigation effort between DHS OIG and HSI played a pivotal role in the successful prosecution of this case.