Feds Raid Warehouse; Confiscate Fake Goods

Federal agents with Immigration and Customs Enforcement (ICE) spent Monday morning confiscating boxes filled with fake designer goods from a warehouse on Cloud Springs Road in Catoosa County, Georgia.

Agents tell us they uncovered a large-scale, high-end knock-off sales ring, operated by a group of Chinese nationals, through a warehouse in the back of Gateway Mall.

Investigators from at least six different agencies confiscated 10 to 20 million dollars of bogus bags, phony footwear, and counterfeit couture. Everything from fake Gucci, Chanel and Louis Vuitton handbags, to imitation John Deere hats, and Puma and Nike sneakers.

Calhoun Police Chief Gary Moss says it's a "substantial bust. It's probably the largest one in North Georgia for sure, if not the entire state of Georgia."

The bust stems from a three year investigation, started by private investigators hired by the designers. Police detectives eventually joined in, and spent months spying on the homes and the jobs of the people who run the warehouse.

Fort Oglethorpe Police Chief Larry Black says they documented the suspects making weekly or monthly trips back and forth to New York City. He says the counterfeits originated in China, and were shipped into New York, where they were distributed along the East Coast.

Black says the fake goods started popping up at private purse parties, and flea markets from Dalton to East Ridge. He describes it as a classic counterfeit operation.

The five arrested, allegedly sold the merchandize wholesale to private buyers, who re-sold it at double the price. Black says people could purchase bags for $25-30 apiece, and then sell the bags at $50-100.

A private merchandize investigator who spoke on the condition of anonymity says many of the genuine original desginer bags retail from $500-$2,000.

She says they believe the Fort Oglethorpe warehouse is a part of an international ring that began in China, crossed into New York, and now supplies Georgia, Alabama, Tennessee and the Carolinas.

Moss agrees, saying the five people arrested, could be facing up to 20 years behind bars on state and possibly federal charges, if they are not deported first.

Over the next several days, five tractor trailers will load the illegal merchandize and take it to Atlanta for analysis. Investigators on the scene tell us all of the goods eventually will be destroyed because of copyright infringement.

Warehouse manager Qiu Yi Zhang is charged with counterfeit reproduction of merchandize. Moss says Zhang is facing previous deportation orders. He and Shou Fu Guo, also facing counterfeit reproduction charges, were arrested Monday at Gateway Mall.

Yau Chue Chiang, Hong Ta Show, and Chin Mei Show were arrested Sunday night in a van allegedly used to carry illegal goods. The three face charges of criminal simulation.