Hong Kong Customs Officers Seize HK$11 Million Worth of Fake Luxury Goods and Smash Gang that Targeted Foreign Domestic Helpers

Three Hongkongers arrested for running operation that sold fake Gucci, Prada and Louis Vuitton handbags

Gang only sold items to foreign domestic helpers making it hard for officers to investigate

Hong Kong customs officers arrested five people, seized HK$11 million (US$1.4 million) worth of fake luxury goods, and broken up a crime ring that targeted foreign domestic helpers in the city.

Officers said it was the biggest seizure of its kind in a decade, and was the first time a crime syndicate that sold fake goods to domestic workers had been broken up.

The haul is the biggest seizure of this kind in terms of its value in 10 years,” said superintendent Guy Fong Wing-kai, head of the Intellectual Property Investigation group at the Customs and Excise Department.

Fong said an initial investigation suggested the syndicate was run by three Hongkongers who recruited two foreign domestic helpers to work in its showroom in Sham Shui Po.

The showroom, located in a commercial building in the district, was about 100 sq ft in size and connected to a 200 sq ft room that was used for storage. Another two units in the same building were also used by the syndicate for storing counterfeit goods.

Some 18,000 fake products, including from Vietnam and mainland China, were found in the showroom and storage rooms during a raid by customs officers on Sunday.

The goods included handbags, wallets and sports shoes, bearing famous names such as Gucci, Prada, Louis Vuitton, and Nike.

In the showroom, three Hongkongers – one man and two women – and two foreign domestic helpers were arrested.

To avoid detection, “this showroom only served foreign domestic helpers and no locals were allowed to enter”, Fong said.

In the showroom, which opened on Sundays and public holidays, catalogues printed with photos of goods and prices were available for clients to choose the products. Fake goods were then taken from the storeroom next door and given to customers.

Divisional commander Peggy Tam Pui-ying called the quality of seized goods poor, and said the fakes were sold for between HK$50 and HK$1,300 each.

The price was between 1 and 10 per cent of the cost of genuine products,” she said.

Customs officers began investigating the gang after receiving intelligence about the operation two months ago.

Intelligence showed that the syndicate also sold fakes to hawkers who targeted foreign domestic helpers, according to the customs department.

Fong believes the gang had been operating for about three months.

We did come across difficulties during the investigation, because this showroom was only available to foreign domestic helpers,” he said.

So, we used a lot of different methods to conduct surveillance during the investigation.”

He said customs officers would continue to fight against counterfeit crime from different angles.

The five suspects, aged between 35 and 42, have been released on bail.

Over three consecutive Sundays this month customs officers mounted a separate operation against the sale of fake products at mobile hawker stalls in Central district.

During the operation, seven people – five men and two women – were arrested, and 900 fake brand-name products valued at HK$70,000 were seized.

In the run-up to Lunar New Year, local authorities have stepped up enforcement against counterfeit activities across the city. Customs officers have increased patrols at popular shopping spots in various districts, and have reminded traders to comply with the requirements of the Trade Descriptions Ordinance.

The maximum penalty for selling or possessing for sale counterfeit goods is five years in jail and a HK$500,000 fine