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Chinese charged over fake handbags

  • Story Highlights
  • Authorities call it one of the largest counterfeit operations ever discovered
  • Official: Scheme profited "off the backs of legitimate companies"
  • Counterfeit operation allegedly involved 300,000 high-end bags and wallets
  • The alleged leaders are three Chinese citizens living in New York
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WASHINGTON (CNN) -- Three Chinese nationals accused of importing thousands of counterfeit luxury handbags in the United States have been arrested in the past two days, federal authorities announced Thursday.

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Shoppers sort through counterfeit brand name luxury bags and wallets on a Hong Kong street.

"This was a sophisticated criminal conspiracy that trafficked millions of dollars of counterfeit goods from China, profiting off the backs of legitimate companies and their hard-working employees," said Assistant Attorney General Alice Fisher.

Authorities call it one of the largest counterfeit operations ever discovered, involving about 300,000 bags and wallets with names like Burberry, Gucci and Coach.

For customers who bought the knockoffs, it seemed like a deal.

They paid a total of about $16 million for what would have been more than $100 million in handbags, purses and wallets in legitimate retail sales.

The alleged leaders of the counterfeit operations are three Chinese citizens living in New York.

Chong Lam, 49, and Joyce Chan, 39, were arrested there Wednesday. Eric Yuen, 39, was arrested Thursday in Las Vegas, Nevada. Immigration and Customs Enforcement agents who made the arrests began investigating the alleged scheme five years ago, after raids turned up counterfeit goods.

The indictment was secretly returned in Richmond, Virginia, in October. The charges were unsealed when the alleged conspirators were taken into custody. Authorities seized and froze 29 bank accounts and three New York properties.

The Chinese defendants will be taken to Richmond, where they will be arraigned at a later date, officials said. E-mail to a friend E-mail to a friend

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