Members of organised counterfeiting syndicate jailed for conspiracy to sell counterfeit goods and money laundering

Date: 07/05/2018

One mastermind and five members of an organised counterfeiting syndicate were sentenced to 11 to 26 months' imprisonment respectively at the District Court today (May 7) following their earlier conviction for contravention of the Trade Descriptions Ordinance (TDO), Organized and Serious Crimes Ordinance (OSCO) and Crimes Ordinance.

Three of them were sentenced to 22 to 26 months' imprisonment for conspiracy to sell counterfeit goods, while two of them were each sentenced to 22 months' imprisonment for conspiracy to sell counterfeit goods and dealing with property known or believed to be crime proceeds. Another person was sentenced to 11 months' imprisonment for dealing with property known or believed to be crime proceeds.

After in-depth investigation, Hong Kong Customs conducted an operation against an organised counterfeiting syndicate active in Mong Kok in January 2016. The mastermind and five syndicate members were arrested. Customs officers also raided six fixed hawker pitches, six storage areas and an upstairs showroom of counterfeit goods as well as three residential units.

In the operation, over 12 000 pieces of counterfeit goods including watches, handbags, leather goods, accessories and sunglasses were seized with an estimated market value of over $5 million. Over $2 million worth of suspected crime proceeds invovled was restrained.

Hong Kong Customs welcomes the sentence. A spokesperson described the rulings and sentences as a strong deterrent to counterfeiting activities, adding that the case is significant in the context of Customs enforcement against organised counterfeiting syndicate.

Customs will continue striving to combat counterfeiting activities and maintain close collaboration with the trademark owners. Upon detection of suspicious counterfeiting activities or receiving related complaints, Customs will contact the related trademark owners promptly to confirm whether there involves criminal counterfeiting activities and take appropriate actions.
Under the TDO, any person who sells or possesses for sale any goods with forged trademark commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment of five years.

Under the OSCO, a person commits an offence if he deals with any property, knowing or having reasonable grounds to believe that such property in whole or in part directly or indirectly represents any person's proceeds of an indictable offence. The maximum penalty upon conviction is a fine of $5,000,000 and imprisonment for 14 years.

Members of the public may report any suspected violations of the TDO or OSCO to the Customs 24-hour hotline 2545 6182, or dedicated crime-reporting email account (crimereport@customs.gov.hk).

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