Feds: $13.6M in phony sports goods confiscated

Published on NewsOK Modified: January 31, 2013 at 5:19 pm •  Published: January 31, 2013
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NEW ORLEANS (AP) — Investigators have confiscated more than $13.6 million worth of phony sports merchandise over the past five months and expect to seize more in New Orleans during Super Bowl week, a federal law-enforcement official said Thursday.

U.S. Immigration and Customs Enforcement Director John Morton said authorities also have shut down more than 300 websites selling counterfeit goods as part of an enforcement effort dubbed "Operation Red Zone." The operation targeted international shipments of jerseys, hats and other souvenirs entering the U.S. for sale by stores, flea markets and street vendors.

And federal investigators say they have intelligence that shows even the Mexican drug cartels are getting involved in the counterfeit NFL black market trade because they can make quick money by selling fake jerseys in flea markets and parking lots.

In September, for example, HSI's newly created trade enforcement unit seized dozens of counterfeit San Francisco 49ers, Minnesota Vikings and Miami Dolphins jerseys around New Mexico. Agents have also raided flea markets in El Paso, Texas, and seized NFL jerseys that federal agents say were believed to be linked to cartels in northern Mexico and local gangs like Barrio Azteca.

Officials say that a number of seizures of fake NFL materials have shown evidence that cartels are venturing into the lucrative black market in border states, although they are just finding out how the operations work. Federal agents believe cartels are using the counterfeit trade to launder money and expand their illegal activities as authorities step up drug enforcement.

"Cartels are seeking to get their hands into any illegal activity they can," said Kevin Abar, assistant special agent in charge of Homeland Security Investigations in New Mexico. "A lot of folks may think that there's nothing wrong with buying a knockoff Denver Broncos jersey, but in reality, the money is being used to fund the drug war in Mexico."

More than 160,000 counterfeit items, mostly purporting to be official Super Bowl and other NFL merchandise, were seized during "Operation Red Zone." A total of 23 people have been arrested on related charges since September 2012.

"We attacked the counterfeiters at every point along the criminal supply chain," Morton said during a press briefing in New Orleans.

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