LOS ANGELES
Federal authorities have arrested eight individuals accused of conspiring to smuggle hundreds of millions of dollars in counterfeit and illegal goods from China through the Ports of Los Angeles and Long Beach, the Justice Department announced Monday.
A newly unsealed 15-count indictment charges nine defendants – including logistics executives, warehouse owners, and truck drivers – with conspiracy, smuggling, and breaking customs seals.
They allegedly took shipping containers flagged for off-site secondary inspection, removed the contraband, and replaced it with filler cargo to fool customs officials.
Investigators have seized more than $130 million in contraband linked to the group, which is believed to have smuggled at least $200 million worth of goods.
In June 2024, agents discovered $20 million in counterfeit items (shoes, perfume, luxury handbags, apparel, and watches) at a single warehouse.
Seven defendants were arrested on Friday, and an eighth was taken into custody on Saturday.
One individual remains a fugitive.
The seven suspects in custody pleaded not guilty and are set for trial on March 18. The eighth suspect, arrested on unrelated state charges, is expected to be arraigned in federal court soon.
Homeland Security Investigations, U.S. Customs and Border Protection, and Coast Guard Investigative Services led the investigation, seizing more than $1.3 billion in counterfeit goods tied to this and other similar schemes.
If convicted on all counts, each defendant could face up to five years in federal prison on each conspiracy charge, up to 10 years for each customs-seal-breaking charge, and up to 20 years for each smuggling count.