HONG KONG: Customs officials smashed a counterfeit goods syndicate in a popular tourist destination in Mong Kok when they closed down six stalls and six warehouses here the other day.
In the operation codenamed “Torpedo”, officers netted 10,000 fake goods worth HK$5 million along Tung Choi Street, popularly known as Ladies’ Market.
Customs officials said the fake goods included handbags, watches, leather goods and sunglasses and were of medium to high quality. They were priced at about one-third that of the genuine items.
Nine people – including a 22-year-old man believed to be the racket’s mastermind – were arrested.
The market in Tung Choi Street, Mong Kok, is a popular destination for tourists in search of bargains. Photo: David WongThe department launched an investigation in mid-2015 when detectives found vendors had been selling counterfeits secretly to tourists.
Superintendent Guy Fong Wing-kai, head of the Customs Intellectual Property Investigation (Operations), said the syndicate had employed various tactics to avoid detection.
It sourced fake goods from the mainland and stored the items in warehouses. Salespeople at the six stalls sold generic miscellaneous goods on the surface and hid a small amount of samples in drawers and polyethylene boxes.
“The syndicate members were highly alert. They would only show their samples after they were sure the customers were from foreign countries,” Fong said. They also ran an upstairs showroom in a nearby building.
Salespeople would call up the warehouses located on the same street to send for counterfeit items wanted by customers.
The syndicate was believed to have been operating for about nine months and made a daily net profit of HK$40,000.
Several tablet computers and HK$200,000 worth of cash in various currencies, including sterling, Australian dollars, Japanese yen and Taiwanese dollars, were seized in the operation.
Fong said customs believed they had smashed the syndicate and arrested all its members. He said investigations were continuing to determine if vehicles that had been used to transport counterfeits into the city were linked to the syndicate.
He also said that with Lunar New Year approaching, customs would step up patrols and enforcement action against counterfeit goods.
Under the Trade Descriptions Ordinance, anyone who sells or possesses for sale any goods with any forged trademark commits an offence. Upon conviction, offenders are liable to a maximum fine of HK$500,000 and five years’ imprisonment.
