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Sold fake Tiffany jewelry, Ottawa woman sent to prison for three years

A woman who sold hundreds of thousands of dollars worth of counterfeit Tiffany & Co. jewellery was sentenced to nearly three years in prison Friday. Debbie Craddock, 44, passed off the cheap replica jewellery she bought from China as the real thing, promising customers it was authentic but with minor imperfections. Craddock would buy the jewellery for between $4 and $15 a piece. She’d then sell it at home parties for between $75 and $120 each, being sure to package it in the Rhode Island-based company’s trademark little blue box. Craddock would also make her own certificates of authenticity when anyone asked for proof. Real Tiffany and Co. jewellery could sell for hundreds more. The only authorized seller of the jewellery in Canada is Holt Renfrew. The total scope of her sales wasn’t known, although 1,300 customers who paid with cheques spent $316,000 alone. Many more paid with cash and credit cards. Craddock, who had been selling the fake jewellery for six years, spent only $109,574.94 buying it, court heard. However, she persuaded her Chinese suppliers to claim she paid only $8,576.62 for the jewellery so she could avoid or reduce the amount she had to pay in duties. Craddock pleaded guilty to fraud over $5,000, possession of the proceeds of crime, copyright infringement and smuggling the jewellery into Canada without paying duty under the Customs Act. Her lawyer, Michael Crystal, suggested Craddock was “wilfully blind” to the fact that the items were fake, but federal prosecutor Robert Zsigo noted she admitted to buying them from a Chinese supplier named “replicaworld.” Zsigo said when some of the customers challenged Craddock and her staff about the authenticity, they were assured the items were made in the United States and just had slight defects. ntario Superior Court Justice Julianne Parfett questioned whether customers should have wondered why they were getting such a deal. “One would have thought that might have been their first clue,” she said. “If you are talking about people who are wilfully blind, we’re talking about her customers,” added Parfett. Parfett sentenced Craddock, who wore a Harley Davidson zip-up top and wiped away tears in the prisoner’s box before the plea, to 34 months and 12 days in jail. Zsigo said at the time of the Tiffany’s scam, Craddock collected $29,000 in welfare payments along with a GST credit and child tax benefit, all of which she was not entitled to. “You made a considerable amount of money persuading people they were buying seconds of Tiffany jewellery when it really wasn’t Tiffany jewellery at all,” Parfett told Craddock. Craddock, who has already spent more than six months in jail, pleaded guilty in front of a second judge Friday to credit card fraud and two counts of breaching her release conditions, including using the Internet and handling money without RCMP permission. She was sentenced to time served for those offences. Craddock’s common law husband, Sean Craddock, who was once charged himself but has since had the charges dropped, said he believes his wife is truly sorry for what she has done.

FBR launches crackdown against counterfeit cigarettes

The Federal Board of Revenue (FBR) has launched countrywide crackdown against non-duty paid / counterfeit cigarettes and seized 200,000 illegal cigarettes in a single day, sources said. On the special instructions of Ali Arshad Hakeem, chairman of the revenue body, the Directorate Intelligence & Investigation Inland Revenue launched operation against illicit trade of cigarettes at a time when the board is considering various options to revise tax structure on legal brands in order to generate additional revenues of Rs10 billion. The legal tobacco industry had paid Rs69 billion in the national exchequer during the last financial year and now the revenue body is expecting to increase taxation on cigarettes, keeping in view the crunch on revenue collection side. Although, action against non-duty paid cigarettes fall under the jurisdiction of the Customs Intelligence, the FBR chairman instructed the I&I IR to launch operation in all parts of the country. Official documents revealed that smugglers have allegedly opened fire on a mobile team of the FBR on Ring Road Peshawar on Thursday. The mobile team was on surveillance at the Ring Road Peshawar where they tried to stop a vehicle suspected of carrying cigarettes, it said. Smugglers entered in altercation with the team and a scuffle broke out. According to the FBR, the alleged smugglers asked the FBR officials to stop searching vehicles and threatened them with dire consequences. “These people were led by Shafqat Ali son of Haji Mohammad who is a known smuggler of non-duty paid foreign origin cigarettes,” the FBR’s report said. The FBR officials informed the chairman that these vehicles had crossed a number of check-posts of various road surveillance agencies, including policeman. “These smugglers have the support of other provincial and federal government road surveillance agencies and this seems to be the reason for their violent behaviour,” the officials said. “Now the FBR chairman has decided to take up the issue with the chief secretary and IG police of Khyber-Pakhtunkhwa,” a senior FBR official said. The FBR has so far seized 2.5 million cigarettes during the last three months.

Tax agency launches probe into fake oil makers, distributors

South Korea’s tax agency said Wednesday that it has launched an investigation into 66 individuals on suspicions that they are involved in evading taxes by making and distributing illegal fake oil products. The individuals under the probe by the National Tax Service (NTS) are suspected of making and distributing unauthorized oil products by mixing gasoline or diesel with much cheaper kerosene or solvents which are not subject to taxation. Unauthorized fake oil products have long been overtly sold by vendors near highways or gas stations. The government bans the products as they could threaten users’ safety and are highly unstable compared to authentic fuel products. “Through this investigation, we will trace down the money flows of those involved in the whole process from manufacturing to distributing such fake products by utilizing data provided by the Financial Intelligence Unit,” an NTS official said, referring to a financial data-collecting body of the government. If the tax evasion charges prove to be true, the tax agency said that it will collect unpaid taxes from them and ask the prosecution to conduct a criminal investigation of those involved. The tax probe is the first action taken by the new government of President Park Geun-hye against the so-called underground economy as it seeks to toughen its clampdown on tax evasion and broaden its revenue base. The underground economy refers to business and economic activities including many illegal transactions, which leaves the government unable to regulate and impose taxes. Park, who was sworn in on Monday, has said that she will beef up efforts to police the underground economy in a bid to secure money needed to fulfill her campaign pledges such as extended welfare programs. Fake oil is much cheaper than authentic gasoline and diesel products but experts worry that it could inflict damage on engines and threatening users’ safety. It is also criticized for emitting a larger amount of pollutants into the air. The government sets its sight on the fake oil market not just for such safety and environmental issues but also for its ever-growing size and ever-growing amount of evaded taxes. According to the Korea Petroleum Quality and Distribution, tax evasion taking place in the fake oil market is estimated at about 1 trillion won (US$919.1 million) every year. The government suspects that this money could flow into the underground economy where it can be used for many illegal activities.

http://english.yonhapnews.co.kr/business/2013/02/27/19/0502000000AEN20130227006300320F.HTML

Nearly 600 Counterfeit DVDs Seized

Nearly 600 counterfeit DVDs were seized in what police call an elaborate counterfeit operation in an Arlington home. Police stumbled on the alleged operation while serving Melbert Randles with a credit card fraud warrant. “It was a very big bust — one of the bigger ones we’ve come across in a long time,” Sgt. Steve Williams said. In addition to the DVDs, officers found DVD burners and computers in Randles’ home, police said. “What we gather is that movies are prereleased overseas oftentimes, and a lot of rganized crime groups will obtain copies of this and reproduce it to a digital copy and then sell it on the Internet,” Williams said. Williams said Randles likely planned to sell the counterfeits at flea markets out of his trunk while cruising parking lots at malls and shopping centers. He said it is a common practice for counterfeiters that can be tough to track. “They are pretty discrete,” Williams said. “They’re manufacturing the movies in their offices or their home and pretty much behind the scenes.” “The person selling it may not have any further ties than the sale of it, but it may be tied to a criminal organization, said Aaron Aguilar . We’re seeing more organized crime groups becoming involved in counterfeiting products,” said Aaron Aguilar, a Recording Industry Association of America investigator. Aguilar said this side of the industry is not often seen by unsuspecting consumers. “It’s a market that may seem harmless but, in fact, it may also be furthering the operations of organized crime,” he said. Aguilar also said that the effects of counterfeiting reach far beyond big music and film production companies. “It’s the industry as a whole,” he said. “CD plants that used to operate here in the Dallas-Fort Worth area 10 years ago, now there are only a few. Same thing with mom-and-pop stores, small record shops who are trying to sell legitimate products, but they have someone standing outside in the parking lot hawking a counterfeit product at a fraction of their price. It’s tough to compete.” More than 70,000 jobs and $12 billion in legitimate business in the music industry alone have been lost over the last decade, Aguilar said. “It’s a huge problem,” he said. Williams said the counterfeit goods are also a far cry from the real deal. “It’s going to be typically a substandard product, so the movie may cut out or there may be subtitles in a foreign language, so it’s always wise to buy from a reputable source,” Williams said. “You get what you pay for,” he said. Randles is now facing felony counterfeiting charges. The case has been turned over to the Tarrant County District Attorney’s Office

Zambia: Hologram Arrival to Boost Piracy Fight

ZAMBIA: The holograms which will be affixed on audio-visual products are scheduled to arrive in the country next week. This came to light when Information and Broadcasting Services Permanent Secretary Amos Malupenga led a delegation to OPSEC, a UK based global company specialised in providing anti-counterfeit and brand solutions.OPSEC which has now completed the works was engaged by the Zambian Government to supply five million holograms. The delegation was in Newcastle to undertake a pre – inspection of the hologrammes before shipment to Zambia. Mr Malupenga said Government was delighted that the problem of piracy that has been a perpetual issue will now be dealt with by the force it deserves. “Piracy continues to be a key challenge in the country and has been a major reason for the losses that the music and video production industry have continued to suffer on the market,” he said. He said the holograms will not only help enforcement agencies to check duplication and adulteration but will also help consumers in identifying original products.The permanent secretary said soon after the arrival of the holograms, the Government will set up a taskforce to oversee the implementation process of the security tags. Mr Malupenga further said that Government will launch an anti – piracy awareness campaign to sensitise the public on what the hologram is and how it works. Intellectual Property Specialist Kingsley Nkonde thanked the Patriotic Front (PF) government for finally bringing the hologram in the country. He said the hologram project was embarked on eight years ago by the previous administration, adding that he was glad that the PF government chose to priorities the project and complete it within a short period of time. OPSEC Marketing Manager Trevor Willis assured the delegation that the hologram was tamper proof. He explained that once affixed on audio-visual products and if a person attempted to remove it, it denigrates into pieces. Government announced plans in 2005 to affix a hologram, a security feature on audio-visual products in a bid to certify the originality of the works and curb the problem of piracy.

http://allafrica.com/stories/201302230254.html

Fake brand items flood markets

The recent recovery of fake watches of leading international brands in Chandigarh has opened up a Pandora’s box. The duplicate goods industry includes apparel, shoes, crockery, cold drinks and cosmetics of international brands. It all started when major companies like Tommy Hilfiger, Tag Heuer, Puma and Polo looked at their sales volumes in Chandigarh and observed a mysterious slump. Failing to identify a reason for such a state of affairs, they hired a local company to investigate the matter on their behalf. That is how Romesh Dutt, director of Speed Search and Security Networks Private Limited, an individual property rights company, filed complaints and conducted raids. Company officials said they have recovered fake material worth Rs 10 crore in the city over the last one year. “Over one year, we recovered fake clothes, shoes, watches and cosmetics of leading brands, worth Rs 10 crore from different places in Chandigarh. The seized material is now case property and is in police custody. But more fake products are readily available in various shops in the city. They are selling products without any check,” Romesh Dutt, who also runs a detective agency, told TOI. “The material is usually brought to the city once or twice a month by trucks. The fake goods are then stored in godowns and supplied to dealers, who supply the same to shops. Besides customs officials, tour and travel operators are also involved in the racket. We are collecting documentary evidence against them and will make a disclosure soon,” Romesh Dutt, who also runs a detective agency said. Last week, police raided two shops in Sector 22 and recovered fake watches worth more than Rs 80 lakh in the international market. Ashish Kapoor, deputy suprintendent of police (central) said, “We conducted the raids last week after a tip-off. We are working on ascertaining places where the fake products are available and will continue conducting raids.”

Modus operandi Traders don’t display many duplicates of leading brands in their shops. They have a loyal clientele who have been regulars for years. Every month, at least four to five trucks carrying duplicate clothes and accessories reach Chandigarh their main targets are college students and gullible people.

Trade route Fake watches, cosmetics, crockery and shoes are smuggled from China and Thailand. The goods reach seaports in Kolkata, Gujarat and Mumbai. From there, smugglers take possession of containers and send the material to Chandigarh via road, Fake denim and jeans of leading brands are manufactured in Delhi while fake shirts and t-shirts are stitched in Chennai, from where the material reaches Chandigarh via road from Chandigarh, the material is supplied to different parts of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir.

http://articles.timesofindia.indiatimes.com/2013-02-21/chandigarh/37220785_1_fake-watches-fake-products-fake-clothes

Delhi: 3 held for smuggling liquor

The west Delhi police on Monday arrested three people for their alleged involvement in smuggling of illicit liquor and supplying it in several areas in Uttar Pradesh. Police recovered 66 cartons of liquor, each containing 12 bottles, from a mini truck, which was being used to transport the illicit liquor. Jiyaul Hasan, Parvez and Mohammad Faizan were arrested by a team led by Inspector Raj Kumar, station house officer (SHO) of the Mundka police station when they were taking huge amounts of liquor to Sambhal, UP, in a mini truck. The illicit liquor bottles were concealed in cartons used for packing spare parts of vehicles . V Renganathan, additional CP (west), said the arrests were made following efforts made to curb such illegal business in the west district. The team of the Mundka police station was conducting checking of vehicles at a police picket when they nabbed the three men with their mini truck. During interrogation they disclosed that there is a lot of difference in the prices of liquor in Haryana and UP. On purchasing the liquor from Haryana and then selling it in Sambhal, UP, provides about 100% profit excluding transportation and other expenses. Hence, they were involved in such illegal business, added Renganathan.