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Join Date: Oct 2007
Location: Candy Land
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Why counterfeit bags are BAD - a guide.
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Counterfeit Bags May Have Links To Organized Crime, Terrorism
Kate Spade's Attorney Going After House Parties
A six-month 12 news undercover investigation found the hottest trend in home parties may have serious consequences.
WISN 12 News Investigative reporter Colleen Henry had no idea when she started the undercover investigation into purse parties and fake designer handbags that it would take such a serious twist and doubts the women, who've made a business of selling counterfeit chic, have any idea what kinds of violence the sale of these fake bags might be funding.
"Lots of women buying, very excited to be going through all these purses," 12 News producer Susan MacDonald said.
For six months, 12 News investigated the purse party phenomenon and finally went undercover when it couldn't score a formal invitation for the TV cameras.
MacDonald went to three parties -- from a nearly $500,000 Fox Point home to a Elm Grove strip mall to a $250,000 ranch house in Brookfield.
"Dozens of purses, everywhere, living room, dining room, kitchen, family room," MacDonald said. "There was Kate Spade. There was Prada, Gucci, Louis Vuitton."
While a real Kate Spade will cost you $150 to $300, a purse party fake is just $30 to $60 -- cash only please...
"At those prices, the bags and bag ladies fly out the door," Henry said.
"The problem is enormous, and why is the problem enormous? Because there is demand, and where there is demand, there's supply," Kate Spade attorney Barbara Kolsun said.
Kolsun is the woman the New York Times dubbed the pit bull of the fake fashion police. She is the trademark attorney for handbag designer Kate Spade. She said the company's No. 1 problem now is the purse party.
"I just met with all of my investigators countrywide here Tuesday in our offices and they asked me what's your No. 1 priority for us for the year ahead, and I said, 'House parties, arrest those little ladies at house parties,'" Kolsun said.
Kolsun estimated for every real Kate Spade sold, there's a fake Kate Spade on the street.
Buying the fake bags isn't illegal, but selling them is. The designer label is protected by federal and state law. In other words, hustling counterfeit handbags is a crime that could cost you federal time.
"We're here to talk to you about your handbags," Henry said to the woman that sells the bags out of an Elm Grove strip mall.
"Are they real?" Henry asked.
"No," the woman said.
"So that would make them counterfeit?" Henry asked.
"I don't know," the woman said.
"You know it's a federal crime to sell that kind of stuff," Henry said.
"It probably is. You're probably right," the woman said.
"Can you tell us where you get these things?" Henry asked.
"No, I can't. I'm sorry," the woman said.
"Why not?" Henry asked.
Kate Spade's Kolsun said most purse party ladies get their goods either in New York's Chinatown or in Los Angeles' garment district. Counterfeit couture is their stock in trade and the vendors are fully aware it's illegal.
Blocks and blocks of fake handbags line Chinatown's streets, Henry said. Women from across the country come to buy in bulk.
In Chinatown, Henry found a Kate Spade for $16. It was the same bag MacDonald paid $44 for at a Brookfield purse party.
"This is a $2 bag and you paid $44 for it in cash and you don't know where that cash went," Kolsun said.
Kolsun said where that cash goes is the dirty little secret behind the purse party.
Federal investigators have traced the proceeds from the Chinatown counterfeits to a dangerous underground economy -- an economy thriving on sales to purse party dealers from America's nicest neighborhoods.
"They're supporting organized crime. They're supporting terrorism. They're hurting the economy," Kolsun said.
They support guys with names like Sammy Meatballs, Mike the Russian and Frankie the Fish, Henry reported.
Two years ago, federal prosecutors indicted more than 70 members of New York's Genovese crime family for a number of racketeering offenses, including trafficking in counterfeit handbags.
Even more frightening was evidence developed by the FBI's joint terrorism task force that the sale of counterfeit goods financed the 1993 World Trade Center bombing.
The U.S. Customs Service continues to warn that counterfeit designer bags may finance terror.
"That's serious stuff, and anybody who buys a knock-off bag should really think about that -- that that's what you're contributing to," Kolsun said.
The purse sellers that 12 News investigated likely had no idea where the money might have gone, Henry said.
"I'm the housekeeper, there's no one here right now," when Henry knocked at the Brookfield door.
"Well, it looks like everybody's here right now. There are a number of cars in the driveway," Henry responded.
"Do you know where this money goes?" Henry asked the Elm Grove seller.
"I don't know," the woman responded.
"Are you aware of the Genovese crime family is engaged in counterfeit and providing this kind of stuff?" Henry asked.
"No, I'm not," the woman said.
"Do you know this kind of counterfeit was found to have funded the 1993 World Trade Center bombing?" Henry asked.
"I'm not sure," the woman answered.
"Does that concern you?" Henry asked.
"Yes it does, but I'm going to leave," the seller said.
"It's not just about a knock-off Burberry purse or a knock-off Polo T-shirt, it's about a much bigger problem, and when you contribute to that problem by holding a purse party, going to a purse party and buying a couple of bags, then you're contributing to the bigger evil," Kolsun said,
Federal officials and anti-counterfeit investigators continue to link the sale of fake goods to organized crime.
Counterfeiting had been a relatively low police priority, but in this era of homeland security that appears to be changing.
As for the Milwaukee-area purse sellers, it's unlikely they were aware of the link, Henry said.
Still, anti-counterfeiters like Kate Spade's attorney vow to shut them down by either pressing criminal charges or a lawsuit.
How do you know if you're buying the real thing?- If you can peel off the label, it's a fake.
- The real thing will have a tag indicating where it was made.
- Real designer handbags are sold at either company stores or major department stores, not at home parties or on the street.
The bags 12 News bought for its research will be donated to a Milwaukee women's shelter -- once the designer labels are taken off.
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Read this article here: Counterfeit Bags May Have Links To Organized Crime, Terrorism - Milwaukee News Story - WISN Milwaukee
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Counterfeit Handbags and Terrorism
In most major cities in the world, there is an active and highly profitable shadow economy in phony consumer goods that generates (in some estimates) upwards of 500 billion dollars a year. If have ever been down to "Counterfeit Alley" in midtown Manhattan, you have seen one of the biggest counterfeit marketplaces in the world.
While many of us spend our waking hours lusting after the latest fashion designs from our favorite designers, there are a lot of people out there who purchase knock-off or phony items without fully appreciating the consequences.
I recently read a book called "Knockoff", written by a fellow named Tim Phillips. It was an insightful read, with a number of interesting and often disturbing ideas presented. I was particularly interested in the section he devoted to the trade in phony luxury items such as designer handbags. These days, it seems I can't go anywhere without seeing somebody carrying a fake Prada or Gucci purse. Personally, I have always resisted the urge to purchase a counterfeit purse. I have avoided the temptation mainly because such an action only undermines an industry I have grown to love. When one considers the price of some of the higher-end purses, it should come as no surprise that some people purchase fakes.
What will surprise you is the discovery that their money is supporting future terrorist attacks in America and abroad. This book has confirmed my belief in supporting legitimate companies. Have you ever stopped to consider where the money you spend on fake consumer products ends up? This book will provide you with some frightening insights. The "black market" in counterfeit consumer goods provides incredible resources for criminal organizations, and these organizations certainly do not have the public interest at heart.
One of the most disturbing ideas in the book was the suggestion that terrorist organizations, working with organized crime groups, use the profits gained from these illegal sales to support future attacks. I could not sleep at night if I thought I was supporting terrorist campaigns to maim and kill innocent civilians in America, or anywhere else for that matter. I am a firm believer in being a conscientious shopper, and supporting companies that are trying to make the world a better place. I will gladly pay three times the price of a phony purse, to ensure that my money is not supporting terrorism. Check out "Knockoff" when you have a chance. It is a real eye-opener.
Short note about the author
Cathy Feldman always wanted to be a famous supermodel. When she is not fantasizing about strutting down the runway with her favorite Gucci purse, she writes for Designer Handbags ? an online designer handbag resource, with extensive information on real Louis Vuitton Purses, Cole Haan Handbags, Diesel Purses and more.
baglady@designerhandbags101.com
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Read this article here: Counterfeit Handbags and Terrorism |