Los Angeles County investigators have seized counterfeit merchandise estimated to be worth $10 million following a search of a warehouse in California.
The Aug. 25 operation at a commercial property in the 11600 block of Goldring Road in Arcadia resulted in the recovery of 25,898 items carrying Nike, Adidas and other protected trademarks. No arrests were made during the operation.
The Los Angeles County Sheriff’s Department announced the seizure on Sept. 1. Its Counterfeit and Piracy Enforcement Team (CAPE) conducted the investigation alongside unnamed federal agents.
According to the department, the owner of the business has been identified as an outstanding suspect. The investigation remains active.
Port inspection points investigators to Arcadia warehouse
The case began in early August, when CAPE received information concerning a bulk shipment. Authorities intercepted and inspected the cargo at an unidentified port of entry, where examiners determined that it contained large quantities of counterfeit streetwear.
Shipping documentation identified the Arcadia commercial property as the shipment’s destination.
Investigators subsequently obtained a search warrant for the location. On Aug. 25, deputies and federal special agents executed the warrant and recovered thousands of products bearing protected brand names.
The Los Angeles County Sheriff’s Department placed the estimated retail value of the seized merchandise at approximately $10 million.
Shipment and transportation details remain undisclosed
Authorities have not disclosed the port where the shipment was intercepted, the federal agency involved, the country or point of origin of the cargo and the transportation mode used to move the merchandise.
Information available also does not show if the shipment underwent a controlled delivery before investigators acted against the Arcadia warehouse.
LASD said the $10 million figure was the estimated retail value of the goods. FreightWaves contacted the department for more information, but did not get a response before publication.
CAPE investigates businesses and individuals involved in the sale of counterfeit merchandise throughout Los Angeles County. This unit takes care of everything from production and sales to distribution of illicit goods.
It investigators also work with patrol stations, detectives and outside law enforcement agencies. They are responsible for the detection of pirated and counterfeit goods and the referral of cases for prosecution.
Counterfeit enforcement continues across Los Angeles County
CAPE has conducted approximately 25 searches in Los Angeles County in the past year. The operations resulted in the seizure of some 200,000 counterfeit items.
LASD estimated the overall retail value of the goods was between $15 million and $25 million.
The unit also monitors major events where unauthorized merchandise may be sold, taking its enforcement activities beyond warehouses and commercial properties.
Why it is important
Counterfeit products can travel through many of the same ports, warehouses and transportation systems as legitimate goods.
The case points to the need for logistics firms to vet customers, keep detailed records of shipping and destinations and have clear escalation procedures for when a shipment causes concern.
The Arcadia seizure also demonstrates how intelligence gathered from port inspections can lead investigators further up the supply chain to link a suspicious shipment to a commercial destination.
