Owners and  operators of eight shops in San Francisco's Fisherman Wharf district   were charged in a 25-count indictment as part of the largest U.S.  federal enforcement action ever taken against West Coast retailers.  Authorities found counterfeit jewelry and watches,  designer apparel and  accessories.

"Interdicting and destroying counterfeit and trademark infringing  goods has long been a priority of the federal government," said Joseph  P. Russoniello, U.S. attorney for the Northern District of California.   "The significant impact of trafficking in such merchandise on the  American economy should be obvious. Wherever evidence leads to the  identification of persons engaged in that enterprise, the Department of  Justice will vigorously pursue the case and prosecute the offenders."

The indictment was  unsealed yesterday morning and charges the  defendants with conspiracy, smuggling goods into the United States, and  trafficking in counterfeit goods. The investigation led to the seizure  of nearly $100 million worth of counterfeit merchandise.

"To consumers who think designer knockoffs are a harmless way to beat  the system and get a great deal, 'buyer beware,'" said John Morton,  director for U.S. Immigration and Customs Enforcement. "Trademark  infringement and intellectual property crime not only cost this country  much needed jobs and business revenues, but the illegal importation of  substandard products can also pose a serious threat to consumers' health  and safety."

Defendants began making their initial appearances in federal court  yesterday morning. If convicted, they face up to 20 years in prison and a  $250,000 fine for smuggling goods into the United States; 10 years in  prison and a $2 million fine for each count of trafficking in  counterfeit goods; and five years in prison and a $250,000 fine for  conspiring to traffic in counterfeit goods.

Ref: <a href="http://www.diamonds.net/news/NewsItem.aspx?ArticleID=32024" target="_blank">Diamonds.net</a>