Clarksville, TN – On April 18th, 2017, Clarksville Police Department’s District 3 Detectives and Officers with assistance from Kroger’s Organized Retail Crime Unit and Investigators working for designers victimized from sales of counterfeit products served search warrants at four locations in Clarksville.
The search warrants were a culmination of an exhaustive three month investigation.
There was over $24,000 in cash and almost 70 lbs of marijuana seized as a result of the investigation.
The merchandise value for the counterfeited goods is in excess $1,500,000 and over $100,000 for the marijuana. The proceeds from counterfeit merchandise by definition constitutes money laundering.
Three arrests have made and more arrests as well as additional charges, are expected:
Chen Fei and Xiu Li were booked into Montgomery County Jail and charged with: Money Laundering and Use Of Counterfeit Mark Or Logo; Bond: $100,000.
Sheng Yao Li was taken in custody April 20th, 2017 on our warrant, in Nashville (photo not available). After he is transported to Clarksville, he will be booked into the Montgomery County Jail for: Money Laundering and Use Of Counterfeit Mark Or Logo; Bond: $200,000.
Additional Background Information
The production and sales of counterfeit products is an increasingly serious problem in the international trade market. Apart from issues of intellectual property theft and consumer safety, there is the notion that counterfeit sales are a victim less crime.
Counterfeiting is an extremely easy industry to enter, while maintaining a certain level of anonymity. Also, the profits from counterfeit sales considerably outweigh those of other illegal activities. While the sales of cocaine might yield a 100% profit margin, sales of counterfeited products could earn a proficient counterfeiter profits of up to 900%.
Violent crimes usually grab headlines and attract the attention. Intellectual property crimes often go unnoticed even though it represents one of the most serious and wide spread crime industries in the world. The most common type of intellectual property crime is the counterfeiting of branded goods.
Some types of counterfeit products are most common and widely-known are “luxury goods” such as fake designer handbags and wallets.
European and American clothing and accessory brands have been targets of counterfeiters looking to exploit the demand for goods. However, designers employ lawyers and independent investigators and to spend millions each year fighting the counterfeiting of their products.
