Counterfeit Disney Marvel Toys, Hung Lam and Isabella Kit Yeung Were Arrested

Hung Lam, 55, and Isabella Kit Yeung, 37, both of Miami-Dade County, and Florida corporations LM Import-Export, Inc. (LM), Lam’s Investment Corp. (LIC), and LK Toys Corporation (LK), with conspiracy to traffic and smuggle children’s products, including toys, containing banned hazardous substances, such as lead and small parts, in violation of 18 U.S.C. § 371 (Count 1); trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320 (Counts 2 and 3); smuggling goods contrary to law, in violation of 18 U.S.C. . § 545 (Counts 4 and 5); entry of goods pursuant to false statements, in violation of 18 U.S.C. § 542 (Count 6 and 7); and false label country of origin, in violation of 19 U.S.C. § 1304(a) (Count 8). In addition, the U.S. is seeking the forfeiture of money and other property used in connection with these crimes, including the LM Warehouse. The defendants made their initial appearances in court yesterday, January 23, 2012.

According to the filed Information, from approximately April 2000 through May 2011, the defendants conspired to sell and distribute in commerce children’s products imported from China in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. These products allegedly presented the risk of choking, aspiration, and ingestion, and some contained lead above the allowed statutory limits. According to the allegations in the Information, the defendants imported these products by means of false statements on custom declaration forms.

If convicted on the charges in Count 1, defendants Lam and Yeung face a statutory maximum sentence of up to five years in prison. If convicted of Counts 2 and 3, Lam and Yeung face a statutory maximum sentence of up to ten years in prison. If convicted of Counts 4 and 5, Lam and Yeung face a possible statutory maximum sentence of up to 20 years in prison. If convicted of Counts 6 and 7, Lam and Yeung face a statutory maximum sentence of up to two years in prison. Lastly, if convicted on Count 8, Yeung faces a statutory maximum sentence of up to one year imprisonment. The corporate defendants LM, LIC, and LK face maximum fines of $500,000 on each count.

Mr. Ferrer commended the investigative efforts of ICE-HSI, CPSC, and CBP. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.

Source... http://www.justice.gov/usao/fls/PressReleases/120124-01.html

4.5 Million in Chinese-Made Counterfeit Cigarettes Seized

Roughly 30,000 cartons of illegal cigarettes with an estimated street value of $4.5 million were seized from a warehouse in Borough Park last week, the Brooklyn DA's office announced Friday. The major bust was the fruit of a six month investigation, and netted one arrest: Yin Haun Zhao, who is accused of Trademark Counterfeiting in the Second Degree and Attempt to Evade or Defeat Cigarette and Tobacco Products Tax. He faces up to seven years in prison if convicted.

According to Brooklyn DA Charles Hynes, the cigarettes included counterfeit versions of popular brands, such as Marlboro and Camel, as well as less well-known Chinese cigarettes. "As unhealthy as smoking is, smoking counterfeit and bootleg cigarettes is even worse, because there is no way of knowing what chemicals they contain,” Hynes said in a statement. “Selling this poison is also a drain on the state and city economy, because these cigarettes are entirely untaxed.” The taxes on that quantity of smokes, if sold legally, would have generated $1.8 million in revenue.

Michael Vecchione, Chief of the Brooklyn DA’s Racket Division, tells Brooklyn Paper that in China, where the cigarettes originated, unregulated tobacco "is sometimes dried by trucks rolling over the nicotine-filled leaves laid out on the ground, lacing it with leaded gas fumes in the process." It's laborious work, but how else are you going to get a pure taste of Diesel Flavor Country.

Source: http://gothamist.com/2013/01/28/45_million_in_counterfeit_cigarette.php