$8 Million in Counterfeits Seized in Fashion District

A Nov. 29 raid that resulted in 26 arrests and the seizure of more than 50,000 pieces of suspected counterfeit clothing, jewelry, accessories, DVDs and CDs in the Los Angeles Fashion District may spell out another problem for area businesses: gangs.

City Attorney Rocky Delgadillo intimated during a Nov. 30 press conference that gangs are behind the peddling and equated the trading with “blood money.”

Kent Smith, executive director of the Los Angeles Fashion District Business Improvement District, agreed with the assessment. “It’s disturbing,” he said.

Smith has received complaints from existing business owners about the illegal DVD and T-shirt peddlers charging “rent” so they can operate in front of their stores.

The goods seized were estimated to have a street value of $8 million. About 50,000 items were confiscated, including apparel and accessories bearing the labels of Gucci, Fendi and Prada, in addition to box loads of suspected pirated DVDs and music CDs. Representatives of several apparel companies assisted with the investigation, said police.

The raid, dubbed “Operation Knockout,” was conducted by about 140 officers and agents from the Los Angeles Police Department, the Los Angeles City Attorney’s office and the Los Angeles County District Attorney’s office, who form the new Los Angeles Anti-Piracy Task Force. Los Angeles Councilmember Wendy Greuel, a former Dreamworks Studios executive, is chairperson of the task force and said the bust was the largest related to counterfeit goods in the city’s history.

“People who make counterfeit DVDs, CDs and apparel are stealing, plain and simple. It’s the same as picking someone’s pocket or shoplifting,” said Greuel during a Nov. 30 press conference. “Los Angeles is the creative capital of the nation, and the entertainment industry is the backbone of our economy. When the public buys stolen goods, it’s not just the big stars that are affected. It is the people behind the scenes and small clothing stores and hometown theaters.”

The raid resulted in the closure of 11th Street between Maple and Santee all day. Smith said it resulted in a lot of chaos for the area’s legitimate businesses, who complained that law-enforcement authorities were a bit overwhelming and put a roadblock in their holiday sales momentum.—Robert McAllister