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playa2
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Falls police break international counterfeit shoe ring
-------------------------------------------------------------------------------- Who was trying to sell shoes on this site + realgm
http://www.niagara-gazette.com/local...256113402.html
Falls police break international counterfeit shoe ring
It began as a “quality of life” investigation at the corner of Highland and Centre avenues
Before long, it had taken Falls Police and federal investigators all the way to China and back.
On Wednesday, armed with a grand jury indictment, investigators fanned out through the Falls, Buffalo, New York City and cities in six other states, to take down a massive multi-million dollar counterfeit sneaker ring.
The four count indictment charges 23 men and women with conspiracy to traffic in counterfeit goods and trafficking in counterfeit goods.
The primary local target of the investigation, Cortez Waters, was arrested at his home in Buffalo, along with his wife. Waters, a Niagara Falls native, was identified by investigators as “controlling the Buffalo-Niagara Falls counterfeit sneaker trade.”
When a heavily armed SWAT team hit Water’s home at 6 a.m., they recovered 700 pairs of knock-off Nike sneakers and a handgun. Another 200 pairs were seized at second home in Buffalo.
Investigators said Waters may have been making as much as $250,000 from the operation every 60 days.
Standing by a display of counterfeit sneakers, at a midday news conference, Terrance Flynn, the United States Attorney for the Western District of New York, said breaking up the ring was important for a number of reasons.
“It poses a risk to the consumer, it hurts American industry and it jeopardizes our security,” Flynn said of the selling of counterfeit sneakers. “In addition, the proceeds of (the counterfeiting and smuggling operation) were shipped overseas. This case is significant in its scope.”
The ring was first uncovered in April when Falls police began investigating complaints from North End residents of groups of men in the area of Highland and Centre avenues and 18th Street and Niagara Avenue selling sneakers and being rowdy.
“We spent a lot of time, energy and money trying to stabilize the Highland Avenue neighborhood,’ Falls Police Superintendent John Chella said. “Then these guys came in and disrupted the neighborhood.”
When area block clubs complained, Chella said Cataract City cops decided to take some action.
“I don’t know whether they thought we were going to ignore it or what,” Chella said. “They were blatant about what they were doing. This isn’t a street corner in New York City (where fake luxury goods are sold).”
Federal agents and local investigators, close to the four month long probe, said the scope of the counterfeiting and smuggling operation was “staggering.”
Waters supply of knock-off Nikes was traced to Brooklyn-based businessman Malik Bazzi. When Bazzi was arrested by federal agents on Wednesday they seized 1,000 cases of counterfeit sneakers from a warehouse he controlled and $100,000 cash.
Bazzi was supplied by three naturalized Chinese Americans, Julie, Charlie and Henry Wang.
The Wangs and at least two other naturalized Chinese Americans imported shipping containers full of counterfeit Nike sneakers from the People’s Republic of China. The sneakers were then sold to Bazzi and a select few other wholesalers, in the New York City area.
From there, Bazzi supplied Waters and other sellers in Rochester, New York City, Milwaukee, Chicago, Pittsburgh, Pawtucket, Dallas and locations in Georgia.
Once the Nike knockoffs reached the streets of the Falls and Buffalo, Waters distributed them to corner delis, barber shops and so-called “Mom and Pop” retail stores. He also sold them under tents and out of the back of rented trucks on street corners and parking lots.
While real Nike sneakers sell for between $80 and $120, Waters sold his counterfeits for $40 to $60.
Dave Simpson, director of security for Nike, said there is an easy way for consumers to know whether they are buying legitimate Nike products or knock-offs.
“The best way to be sure is the point of purchase,” Simpson said. “Nike doesn’t sell its products out of trucks on a street corner.”
Simpson said the investigation is continuing and “more arrests are likely.”
Flynn also indicated that aspects of the investigation were not completed but would not say more.
“The rest of this investigation, we can’t comment on,” the U.S. attorney said.
As for residents in the Falls, Chella said their complaints did not fall on deaf ears.
“To all the people who been complaining about this problem, now you can see why we couldn’t (do something immediately),” Chella said. “But you called and we got at it.”
Contact reporter Rick Pfeiffer at 282-2311, ext. 2252.
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9/14/2007 2:37 PM