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TMCNet:  Feds crack down on fake Cyber Monday merchandise

[November 26, 2012]

Feds crack down on fake Cyber Monday merchandise

Nov 26, 2012 (The Buffalo News - McClatchy-Tribune Information Services via COMTEX) -- Shoppers were not the only ones busy on Cyber Monday.

So were federal investigators in Buffalo who marked the day by shutting down 15 websites allegedly selling counterfeit New Era caps and other sports merchandise.

For the third year in a row, agents from Immigration and Customs Enforcement conducted a global operation targeting websites that prey on unsuspecting consumers.

In Buffalo, they focused on websites selling knock-off sports products, including New Era Cap Co. merchandise, and ended up seizing 15 of those sites.

"These are not victimless crimes," said U.S. Attorney William J. Hochul Jr. "When you buy counterfeit merchandise, you're not only hurting the company, you're hurting the company's employees." As part of their investigation, federal agents made undercover purchases from websites suspected of offering counterfeit products and, once the goods arrived, attempted to confirm their authenticity.


If the goods were found to be counterfeit, the government then obtained court-approved seizure orders that allowed them to shut down the websites and obtain their domain names.

In a related case, agents also arrested Gary C. Hammer, 47, of Cheektowaga and charged him with selling fake Microsoft software on Craigslist.

"It's not only illegal, it's a danger to the consumer purchasing it," said James C. Spero, special agent in charge of the Buffalo office of Immigration and Customs Enforcement, Homeland Security Investigations.

Spero said counterfeit software can pose a risk to buyers who may use it to store important personal or financial information.

"As far as we know, this is the first time he's been involved in this type of activity," Assistant U.S. Attorney Michael DiGiacomo said of Hammer.

The investigation into the 15 websites is continuing and one of the focuses of that ongoing effort will be the individuals who sold the knock-off caps and merchandise. So far, no arrests have been made.

Spero said the fake caps were made in China but investigators are uncertain if the sales involved any distributors or middle men in the U.S.

"We're not convinced yet," he said. "We need to track back to see where these products were coming from." The government's nationwide crackdown targeted online retailers offering a wide range of counterfeit goods and resulted in the seizure of 132 websites.

The seizure of counterfeit websites has become an annual Cyber Monday ritual of sorts.

It also came just two months after Sen. Charles Schumer, D-N.Y., called for stronger action against the manufacturers of counterfeit products, many of them in China, and the websites that market them.

Schumer claims New Era has lost $300 million in sales because of counterfeit caps and suggested the illegal activity has put the Buffalo-based company at risk.

On Monday, Schumer announced that the U.S. Trade Representative's office has communicated New Era's concerns about knock-off caps to high-level Chinese government officials.

In addition, a Chinese website that has provided a vehicle for counterfeiters to sell their products has removed 380 listings for New Era products, he said.

Federal authorities offered a wide range of tips on how to avoid buying counterfeit products, including the need for every online consumer to be aware of who they are buying from.

Investigators noted that many counterfeit sites sell their items at prices that are truly too good to be true and often use improper grammar or incorrect spelling on their web pages.

They pointed to one of the New Era knock-off sites that listed itself as "New Ear." "Spelling and grammar' said Nicholas Peruzzini, a special agent for Immigration and Customs Enforcement. "The grammar is incorrect in a lot of these." email: pfairbanks@buffnews.com ___ (c)2012 The Buffalo News (Buffalo, N.Y.) Visit The Buffalo News (Buffalo, N.Y.) at www.buffalonews.com Distributed by MCT Information Services

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