3 arrested in fake designer goods ring

Three merchants face charges of importing and selling knockoff Louis Vuitton, Gucci and Burberry handbags and wallets in what federal prosecutors say is among the largest counterfeit rings of its kind in the United States.

Chong Lam, Siu Yung Chan and Eric Yuen, all of New York, are charged with one count of conspiracy to traffic in counterfeit goods, four counts of trafficking in counterfeit goods, and two counts of smuggling counterfeit goods, according to an indictment filed in U.S. District Court in Richmond.

Immigrations and customs agents arrested Lam and Chan at their New York City clothing store Wednesday; Yuen was arrested Thursday in Las Vegas.

Through several shell companies, the three imported more than 300,000 counterfeit luxury bags and wallets from China between August 2002 and November 2005 and sold them at significantly lower prices than their genuine counterparts, the indictment said. The three imported the products in shipping containers into several ports around the country, including the port of Norfolk.

If convicted on all charges, the three each face 55 years in federal prison and $8.75 million in fines.

Authorities said the three received at least $16 million in proceeds from sales of the fakes. The estimated value of corresponding authentic goods was more than $100 million.

Terrence Randell, a lawyer representing Lam and Chan, declined to comment when contacted by telephone Friday. He said he didn't know whether his clients' co-defendant had an attorney.