Europol and Interpol have announced the seizure of 320 additional tonnes of "counterfeit and substandard food and beverages" following an operation that involved 83 countries, bringing the operation's seizure total to about 12,000 tonnes. "This year’s operational activities have found a new disturbing trend to address: the infiltration of low-quality products into the supply chain, a development possibly linked to the COVID-19 pandemic," the press release notes. The operation, which focused on dairy foods, olive oil, alcohol and horse meat, also identified counterfeit cereals, grains and derived products as well as coffee, tea and condiments.
Tag Archives counterfeit
Europol announced that it has "dismantled a sophisticated criminal network involved in counterfeiting trademarks and distinctive labels of a famous winery in Florence, Italy, as well as counterfeiting at least 11 000 bottles of red wine." The agency arrested three people, including two members of the same family, who allegedly "sold sports products online as a way to mislead consumers of their activities." According to a press release, the "modus operandi was to prepare bottles of low-quality wine and once ready, would sell them to the Italian and international markets, primarily in Belgium and Germany."
Burger King Corp. faces a civil-rights lawsuit after an employee at a Boston location accused a man of trying to pay for food with an allegedly counterfeit $10 bill, refused to return the bill and called the police when the man would not leave the restaurant. Ellis v. Burger King Corp., No. 1884-CV-01489 (Mass. Super. Ct., Suffolk Cty., filed May 14, 2018). The plaintiff, who is homeless and black, alleges that when he was arraigned, he was charged with possession of counterfeit notes and a probation violation and was subsequently held without bail from November 12, 2015, until February 19, 2016. He was reportedly released when the U.S. Secret Service notified the prosecutor that the $10 bill was authentic and not counterfeit. Burger King allegedly did not return the $10 bill to the man. Claiming conversion, defamation, negligence and violation of the Massachusetts Civil Rights Act, the plaintiff seeks attorney's fees and $950,000…
Greek officials have reportedly charged seven people with criminal fraud and money laundering related to the sale of adulterated olive oil. The group allegedly added green dyes to sunflower seed oil then sold it off-market as extra-virgin olive oil. Most of the oil was sold in Greece or exported to Germany and other EU countries using invoices that were later destroyed. The Greek police reportedly became aware of the sale of adulterated oil when olive oil producers told the Hellenic Food Authority that their producer codes were being used on packages and products they did not sell.
The chairman of French wine merchant Raphaël Michel has been indicted on charges that he masterminded a scheme to label nearly 4 million cases of ordinary table wine as Rhône Valley wines, including Châteaunneuf-du-Pape and Côtes du Rhône. Guillaume Ryckwaert has been charged with fraud, deception and violations of consumer and tax codes. Several other company executives were taken into custody in Marseilles but released without charges. Agents of the French National Customs Judicial Service discovered the alleged scheme during a company audit in 2016. See The Times, August 4, 2017.
Two people have been convicted of conspiracy in charges related to a scheme to distribute counterfeit 5-Hour Energy drinks. United States v. Shayota, No. 15-0264 (N.D. Cal., verdict entered November 28, 2016). The couple, Joseph and Adriana Shayota, produced several million bottles of a drink manufactured under unsanitary conditions and labeled the drink with 5-Hour Energy's packaging. Before beginning that scheme, the couple reportedly bought 5-Hour Energy drinks intended for the Mexican market, repackaged them and sold them in the United States for a price well below the retail price. Six other defendants pleaded guilty to similar charges, and 5-Hour Energy maker Living Essentials won a $20-million civil judgment in March 2016. See Los Angeles Times, November 30, 2016. Issue 624
The U.S. Court of Appeals for the Second Circuit had upheld the conviction of a man who sold $20 million worth of counterfeit wine by mixing lower-priced wines and pouring them into the bottles of more expensive wines. USA v. Kurniawan, No. 14-2928 (2nd Cir., order entered December 22, 2015). The man challenged the search of his home on Fourth Amendment grounds, arguing that the evidence police found should have been inadmissible. The appeals court disagreed, finding that although the warrantless protective sweep had been illegal, the police affidavit provided enough additional evidence beyond what was found during the protective sweep to support issuing the warrant. Accordingly, the court affirmed a lower court’s judgment that the man must serve 10 years in prison and pay $28 million in restitution along with $20 million in forfeiture. Issue 589
According to New York Southern District U.S. Attorney Preet Bharara, a man who allegedly operated a wine counterfeiting laboratory from his California residence between 2004 and 2012 has been sentenced to 10 years in prison. Rudy Kurniawan apparently became a prominent and prolific U.S. dealer of rare and expensive wine that was actually lower-priced wine blended to mimic the taste and character of far better wines. He allegedly purchased empty bottles of rare and expensive wines—some of them from New York City restaurants—poured his mixtures into them, sealed the bottles, and then attached counterfeit labels that he created. The fakes were then sold to wealthy wine collectors through auctions and by direct sales. According to a news source, Kurniawan was eventually caught through misspellings and other packaging errors, including early 20th century dates on some bottles that pre-dated their actual production. Kurniawan also allegedly fraudulently obtained a $3-million loan from a…
Researchers from Switzerland’s technology and natural sciences university, ETH Zurich, have reportedly developed a method of tagging olive oil that can determine the product’s origin and whether it has been adulterated. Consisting of tiny, magnetic DNA particles encapsulated in a silica casing that are mixed with the oil, a few grams of the material are enough to tag the entire olive oil production of Italy. According to the researchers, if counterfeiting is suspected, the particles added at the place of origin can be extracted from the oil and analyzed, revealing the original producer. “The method is equivalent to a label that cannot be removed,” said researcher Robert Grass. Lab experiments evidently revealed that the tags dispersed well in the oil, did not affect clarity or taste, remained stable when heated, and passed a two-year aging trial. Research also showed that the analysis and testing method “can be carried out today by…
A recent New York Times article reported that the distribution of counterfeit food and beverage products is widespread. In “Counterfeit Food More Widespread Than Suspected,” authors Stephen Castle and Doreen Carvajal note that although the scandal in Europe surrounding the substitution of horse meat for beef products has garnered the most attention from consumers, in fact, that is just a hint of what has been happening as the economic crisis persists. Castle and Carvajal report that investigators have uncovered thousands of frauds, raising questions about regulatory oversight as criminals offer shoppers cheaper versions of everyday food products, including chocolate, olive oil, wine, juice, honey, and coffee. One recent food fraud case reportedly involved an international organized crime gang that produced and distributed a “dangerous brew” of fake vodka that appeared legitimate and bore a “near-perfect counterfeit label,” but contained bleach and high levels of methanol. See The New York Times,…
12
