Trafficking in Counterfeit Goods—Pua Family

Three members of a California family have been indicted for allegedly selling counterfeit designer handbags in the United States and elsewhere, and then transferring the proceeds to bank accounts in Switzerland, Malta, and China.^[1] The three, a brother, sister, and son, were arrested last February 2006 in the United States.^[2]

This Tuesday a federal grand jury approved a 30‑page, 50‑count superseding indictment that adds charges of money laundering to the existing charges of conspiracy to traffic in counterfeit goods, wire fraud, and mail fraud.^[3]

The indictment alleges that from 2003 to 2006 Nancy Tan Pua, her son Kevin Pua, and her brother Johnnie Lee Tan sold counterfeit Gucci, Dior, and Prada handbags at a brick‑and‑mortar store in Richmond, California called “Label Love” and through online auctions hosted by the Internet megasite E‑bay.^[4] The three operated the Internet business from the Pua residence in Daly City, California under the names “Accessorific, Inc.” and “Merchants of Venus, Inc.”^[5]

The indictment further charges that Ms. Pua transferred over $2 million from Wells Fargo bank accounts in the names of the two online businesses to 5 overseas bank accounts in Europe and Asia over a period of two years.^[6]

Kevin Pua is scheduled to enter a plea on October 25, 2006.^[7] Nancy Pua and Johnny Tran have a trial date set for November 30, 2006 in Judge Jeffery S. White’s courtroom in the Northern District of California.^[8]

Trafficking in Counterfeit Goods (18 U.S.C. § 2320(a))
It is a crime to traffic in goods or services bearing a counterfeit mark. Penalties include imprisonment for up to 10 years, a fine of up to $2 million, or both.

Money Laundering (18 U.S.C. § 1956(a)(2))
It is a crime to transfer proceeds of unlawful activity out of the United States. Penalties include imprisonment for up to 20 years, a fine of up to $500,000, or both.

Wire Fraud (18 U.S.C. § 1343)
It is a crime to use electronic communications in interstate commerce in support of a scheme or artifice to defraud. Penalties include imprisonment for up to 20 years, a fine, or both.

Mail Fraud (18 U.S.C. § 1341)
It is a crime to use the U.S. mail service in support of a scheme or artifice to defraud. Penalties include imprisonment for up to 20 years, a fine, or both.

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^[1] Daly City Trio Accused of Selling Counterfeit Handbags, Bay City News, Oct. 19, 2006.
[2] Id.
[3] U.S. v. Pua et al, 3:06-cr-00030-JSW, Superseding Indictment, Docket Entry # 53 (N.D. CA, Oct. 17, 2006).
[4] Id.
[5] Id.
[6] Id.
[7] U.S. v. Pua et al, 3:06-cr-00030-JSW, Docket Entry # 52 (N.D. CA, Oct. 10, 2006).
[8] U.S. v. Pua et al, 3:06-cr-00030-JSW, Docket Entry # 51 (N.D. CA, Sept. 28, 2006).