A Folsom merchant faces up to 10 years in prison and a $1.2 million fine for trying to sell designer knock-offs instead of genuine articles.
Appearing Monday before U.S. District Judge William B. Shubb Jr. in Sacramento, Ka Kit Lam, 38, pleaded guilty to one count of trafficking counterfeit goods and services, a news release from acting U.S. Attorney Lawrence G. Brown's office states.
Lam, from San Jose, imported lower quality purses, wallets, shoes, earrings, chains and charms, affixed designer logos and sold them at elevated prices.
The case began to unfold in December 2006 when a U.S. Customs and Border Protection officer examined a shipment of 56 boxes of merchandise sent to Lam's business, Nu Concept Corporation, at 1120 Avon Way in Folsom.
The boxes contained the counterfeit goods with counterfeit trademark-protected logos from Gucci, Louis Vuitton, Chanel, Coach, Dolce & Gabbana, Christian Dior, Juicy Couture, Tiffany, Disney and Hello Kitty, the release states.
Value of the goods seized was estimated at $58,335. Had they been real designer merchandise, the value would have been about $1.2 million, the release states.
Federal agents executed a search warrant at the Folsom location in July 2007 and found 14 boxes of counterfeit goods and a stamper, which is used to attach counterfeit name tags to items, the release states.
Agents also found shipping documents and other forms connected to Lam's business.
Lam admitted to Immigration and Customs Enforcement agents that he went to China in May 2006 and bought 400 designer purses, which he sold at a market in San Francisco. He said customers asked if he could acquire designer knock-offs for them.
Lam returned to China later that year and bought $8,000 in merchandise that had counterfeit designer marks. Lam said he knew they were fake and shipped them to the U.S. a month later. The merchandise was seized by federal authorities a few months later. Non-branded items in the shipment were delivered to Lam.
Lam used the stamper to secure counterfeit labels onto the non-branded items to make them appear genuine and included authentication cards to further the ruse. The items were sold at local markets, the release states.
Lam is scheduled to be sentenced by Shubb on June 1. He faces a possible sentence of up to 10 years in prison, three years of supervised release and a $2 million fine.
Call The Bee's Niesha Lofing, (916) 321-1270.
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