A husband and wife duo was busted by the government for running a scheme in which they imported generic goods from China and re-sold them in America with counterfeit luxury labels attached to them, according to the U.S. Attorney's office.
Investigators say Daye Dong and Hongyu Chen, a couple from Bayside, allegedly spent the last four years importing things like handbags, wallets and purses from China and then selling them out of a Midtown storefront. The store in which the fake luxury goods were sold, DNC Fashion, was brazenly located right down the block from the NYPD's 23rd Precinct headquarters on 30th Street.
Per the criminal complaint, the scheme was first uncovered when an investigator from Immigration and Customs Enforcement found hundreds of pounds of counterfeit luxury labels in packages shipped here from China. After a long investigation that involved the agent dressing up like a UPS delivery person to bring the fake labels to their intended address, and ICE and NYPD agents doing surveillance on warehouses in Bushwick and Ridgewood, the government eventually raided the warehouses on Troutman Street and Ingraham Street as well as DNC Fashion.
Inside, the warehouses, government agents found 30,000 handbags and wallets and corresponding counterfeit luxury labels. Inside DNC Fashion, the government seized 2,000 handbags and wallets with fake luxury labels attached to them.
“These defendants allegedly sold counterfeit goods, fueling consumers’ desire for low prices on high end products. But the cheap prices come at a high price for legitimate businesses," Manhattan U.S. Attorney Preet Bharara said in a statement announcing the arrests. Dong and Chen have each been charged with one count of conspiring to traffic in counterfeit goods, and one count of trafficking in counterfeit goods, both of which carry a maximum of 20 years in prison.