Feds warn gangs, other criminals behind counterfeiting industry
7 On Your Side looks into the top counterfeit goods and how the money may be supporting gang and other criminal activity.
SAN FRANCISCO (KGO) -- Did you get a counterfeit purse for Christmas or maybe a pair of fake designer jeans? Whether you know it or not, that purchase may be supporting gangs and other criminal elements to a tune of an estimated half a trillion dollars a year.
Many enjoy buying phony name brand products for the appearance of having something that looks expensive, others do it to save money, and others are tricked into buying these things. Whatever the reason, the risk to you is high.
Nationwide, the sale of counterfeit designer handbags and wallets tops the lists of seizures by custom agents. That's followed by fake watches and jewelry. Immigration and Customs Enforcement provided 7 On Your Side with video of a recent seizure.
"So it's mind boggling," said Tatum King, Special Agent for Immigration and Customs Enforcement. "And these people that are doing this are criminal organizations many times. They're using that to support their other criminal activities."
These criminals are finding our love for sports to be particularly profitable. Major League Baseball tells 7 On Your Side $400 million in fake professional and collegiate sports merchandise has been seized in the last 20 years.
"They're often sold by transient vendors or at flea markets and bodegas," said Ethan Orlinsky of Major League Baseball.
Here in the Bay Area, sports logo wear is the most confiscated counterfeit item, followed by dangerous and fake prescription drugs.
King says counterfeit erectile dysfunction medication can cause big drops in blood pressure and serious harm. Other bogus pharmaceuticals could cause death.
"First of all, we don't know what kind of ingredients are in there. There's no quality control," warns King.
The Internet is a popular source of these dangerous drugs. Some desperate patients have gone outside the country for drugs to save money and end up buying fakes.
"There have been issues overseas where you've had drugs that are used for mental illnesses that haven't had the correct dosage on them," said King.
Even imitation tooth paste is dangerous. It can contain anti-freeze. Counterfeit power cords and batteries have been known to cause fires and explode.
Consumers who support the counterfeit industry could be hurt in two ways.
"One, who may be getting shoddy products. Two who are having to make up the difference in tax payments because counterfeiters don't pay taxes on what they sell," said Orlinsky.
Ultimately, the only winner in all this may be the bad guys.
The number of seizures has increased 300 percent in 10 years. King hopes by getting the message out about counterfeit goods, the public will stop supporting this illegal industry.
