Wendy Greuel for City Controller

Los Angeles Daily News

$2.7 million piracy ring busted

By Rick Orlov, Staff Writer
Updated: 12/23/2008 03:35:43 PM PST

Authorities arrested 28 people and seized counterfeit goods worth more than $2.7 million in a wide sweep of the city's Fashion District, officials announced Tuesday.

The raid caps a year in which investigators seized more than $22 million in pirated items in Los Angeles County.

City and county officials announced what amounted to the second highest year for taking pirated goods - watches, jewelry, CDs, DVDs and clothes - off the street to protect jobs and tax revenue.

"People who make and sell counterfeit goods are stealing, plain and simple," said Councilwoman Wendy Greuel, who chairs the joint city-county Anti-Piracy Task Force.

Greuel, at a Parker Center news conference where officials stood behind three tables filled with goods seized since last Thursday, said the anti-piracy effort is designed to protect local jobs in the garment and entertainment industries.

Among the items were watches using the name of Rolex, Bulgari and Cartier, designer jeans, sport clothes, new movies and music CDs.

Holding up a DVD of the new movie "Seven Pounds," Greuel and other officials said it was an example of the speed with which counterfeiters can operate. Counterfeiting has spread to local gangs, who seek to cash in without the danger that drug activity entails.

Sheriff Lee Baca said gangs profit by direct sales of the goods as well as offering protection to others who are involved in the sales.

Baca said the federal government needs to become involved in negotiations with Taiwan, where most of the goods are manufactured.
"We need to talk to them to see what can be done to crack down on the manufacturing of these goods," Baca said. "The goods are shipped here legally, but we have no way of knowing what they are shipping until we see it on the streets."

LAPD Cmdr. David Doan said a team of 45 officers began "Operation Clean Sweep" last Thursday, serving search warrants and making arrests at several locations in the Fashion District.

The 28 people arrested will face a variety of charges involving the sale and manufacture of counterfeit goods.

It was the second largest raid on counterfeit goods in county history, behind one in 2006.

"This should serve as a wake-up call to those who sell these goods as well as those who buy them during this holiday season," Greuel said. "It is important to send a message. I know that many people think that counterfeiting and piracy is a victimless crime, but we know that isn't the case."

Greuel said a study by the Los Angeles Economic Development Corp. estimates piracy costs the area 100,000 jobs with a $4 billion annual impact.

The Anti-Piracy Task Force is working on three fronts to combat counterfeit goods - increasing education, developing new policies and stepping-up enforcement. During the past year, Greuel said, there have been more than 300 arrests in various operations to try to control counterfeiting.

Baca said local officials needed to act to protect the entertainment industry.

"Piracy is nothing more than stealing," Baca said. "We are sending the message to those who like to purchase pirated goods - get another way of celebrating the holidays by doing it the right way."