US Jury Convicts 2 For $100 Million Counterfeit Handbag Ring

   DOW JONES NEWSWIRES 
 

A U.S. jury convicted two people for helping operate one of the country's largest counterfeit luxury-goods operations, worth about $100 million in fake goods, according to the Justice Department Friday.

The ruling Thursday in a Richmond, Va., court found that Chong Lam and Siu Yung Chan were guilty of conspiracy to sell fake goods imported from China, of smuggling fake goods into the U.S. and of trafficking in the handbags, wallets, purses, and carry-on bags.

The department said the value of the corresponding authentic luxury goods from Burberry (BURBY), Chanel, LVMH Moet Hennessy Louis Vuitton SA (LVMUY), Gucci Group N.V. (GUCG, 35955-AE), Coach Inc. (COH) and others is estimated to be more than $100 million. Evidence presented at trial indicated Lam and Chan operated a massive international manufacturing, import and wholesale counterfeit goods business. The two were controlling officers of at least 13 companies.

Luxury-goods makers have been aggressive in trying to eliminate counterfeits in order to protect their brands' prestige.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]