ICE Homeland Security Investigations Nabs Smuggled Counterfeit Goods

On July 15, 2020, Hang “Henry” Chen, an employee of CBK, CBK International, and Silicon Electronics, was sentenced by U.S. District Judge James Donato to four months incarceration with three-years supervised release, a $75,000 fine, and restitution up to $137,000.

Chen’s co-defendant, co-conspirator, and owner of CBK and associated companies, Lixiong “John” Chen 45, a citizen of China, fled justice by boarding a flight a day before his trial to Beijing, China, via Tijuana, Mexico. Lixiong Chen was previously indicted Sept. 20, 2018, for violations of Title 18 USC 545, (Smuggling Goods into the United States) and 18 USC 2320(a) (Trafficking in Counterfeit Goods). An INTERPOL Wanted Person Diffusion Red Notice for Lixiong Chen has been issued and he remains at large.

Beginning in 2012, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) San Francisco special agents, with the assistance of Customs and Border Protection, San Francisco Office of Field Operations, and the Newark Police Department made numerous seizures of counterfeit electronic goods at businesses and residences owned and operated by Lixiong “John” Chen. The HSI-led investigation revealed that the counterfeit goods were imported from China and infringed on various trademarks, including Blackberry, HP, Microsoft, Samsung and UL.

Several undercover purchases of counterfeit goods were made through websites and third-party digital store fronts operated by Chen and associates. A review of financial records revealed the PayPal account linked to one of Chen’s eBay store fronts netted approximately $24.5 million since its creation in 2009. This was the same account used to process the payment for an HSI undercover purchase. Further investigation revealed the business accounts held by Chen have received approximately $42.4 million since their creation in 2001.

“These peddlers of counterfeit items were stealing profits from legitimate companies and their hardworking employees, who are trying to earn a living to provide for their families,” said Tatum King, HSI San Francisco (NorCal) Special Agent in Charge. “The results of this operation were achieved through HSI’s interagency partnership with local, state and federal law enforcement, and the prosecutorial tenacity of the U.S. Attorney’s Northern District of California Office.

“Keeping counterfeit goods off the streets not only protects American consumers, but our economy as well,” said Richard F. Di Nucci, CBP San Francisco Director of Field Operations. “Customs and Border Protection works closely with our federal, state, and local law enforcement counterparts, enabling us to interrupt criminal activities at and beyond the border.”

Featured

  • 12 Commercial Crime Sites to Do Your Research

    12 Commercial Crime Sites to Do Your Research

    Understanding crime statistics in your industry and area is crucial for making important decisions about your security budget. With so much information out there, how can you know which statistics to trust? Read Now

  • Boosting Safety and Efficiency

    Boosting Safety and Efficiency

    In alignment with the state of Mississippi’s mission of “Empowering Mississippi citizens to stay connected and engaged with their government,” Salient's CompleteView VMS is being installed throughout more than 150 state boards, commissions and agencies in order to ensure safety for thousands of constituents who access state services daily. Read Now

  • Live From GSX: Post-Show Review

    Live From GSX: Post-Show Review

    This year’s Live From GSX program was a rousing success! Again, we’d like to thank our partners, and IPVideo, for working with us and letting us broadcast their solutions to the industry. You can follow our Live From GSX 2023 page to keep up with post-show developments and announcements. And if you’re interested in working with us in 2024, please don’t hesitate to ask about our Live From programs for ISC West in March or next year’s GSX. Read Now

    • Industry Events
    • GSX
  • People Say the Funniest Things

    People Say the Funniest Things

    By all accounts, GSX version 2023 was completely successful. Apparently, there were plenty of mix-ups with the airlines and getting aircraft from the East Coast into Big D. I am all ears when I am in a gathering of people. You never know when a nugget of information might flip out. Read Now

    • Industry Events
    • GSX

Featured Cybersecurity

Webinars

New Products

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings. 3

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions. 3

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles. 3