One of the most significant raids targeting New York City's counterfeit luxury trade in recent times was carried out by the NYPD earlier this week (Tuesday) in Manhattan's Chinatown district yielding a seizure estimated at more than $1 million USD (660,000 Euros) of counterfeit handbags, scarves, belts, watches and fragrances. The raid involved three buildings dubbed the "Counterfeit Triangle" in reference to the shape of the block formed by Canal, Walker and Centre Streets in downtown Manhattan, a mere few blocks from City Hall and the courts of justice and an obligatory stop for many tourists. The buildings were found to house 32 storefronts illegally selling counterfeit goods and vast storage space for merchandise sold on many street corners throughout Manhattan. The buildings are owned by the Vincent Terranova Estate, a Manhattan landlord known to have been housing counterfeit activities since as early as 1999. No arrests have been made yet but city officials will move quickly to issue violations of health and safety codes that will result in court orders to vacate the premises thereby shuttering the buildings until further order. This tactic effectively shifts the burden of the illegal activities onto local landlords as opposed to the counterfeiters themselves who are often members of vast underworld networks and difficult to track down.
The strategy of pursuing landlords is one of deterrence. In addition to various fines and penalties for health and safety code violations, a landlord will be required to invest significant time and money in what is termed 'nuisance abatement proceedings' to lift the seizure and get their property back. The strategy which was first adopted by the City of New York in 2003 seems to have made a significant impact in deterring landlords from renting their premises to counterfeiters therefore making it more difficult for counterfeiters to operate. The policy adopted by the Mayor's Office of Special Enforcement is driven by the fact that the counterfeit industry is seen as a direct threat to the economic vitality of the city and its ability to draw among the world's biggest luxury brands. (Source)
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