U.S. Attorney Michael Shelby announced on
February 16, 2005, that Zheng Xiao Yi, a citizen of the
Peoples Republic of China who owned and operated an import and
wholesale business in the Harwin Drive area of Houston, has
been sentenced to more than five years in federal prison for
trafficking in counterfeit goods.
At a hearing held February 14, 2005, Yi was
sentenced to serve a total of 63 months in federal prison for
trafficking in counterfeit merchandise illegally imported from
his native China. Zheng also faces deportation upon his
release from prison.
Zheng, the owner of XYZ Trading
Corporation, located at 7018 Harwin Drive, Houston, Texas, was
convicted in July 2004 following a jury trial of six counts of
trafficking and attempting to traffic in merchandise imported
from China carrying counterfeit trademarks. The counterfeit
trademarks were identical with or substantially
indistinguishable from genuine trademarks registered to
Underwriters Laboratories Inc., The Gillette Company, Marvel
Enterprises, Inc., and Nike, Inc., including extension cords
and power-strips, Duracell batteries and flashlights,
Spider-Man figures, and Nike slippers.
The jury’s verdicts were returned
following a four-day trial during which the United States
proved that Zheng trafficked in counterfeit goods imported
from China between August 2003 and November 2003.
Testimony during the trial established that
a load of Zheng’s merchandise was seized in August 2003
after inspectors noticed that the contents of a container
shipped from China to XYZ Trading Corporation did not match
the packing list. Thereafter, the U.S. Bureau of Immigration
and Customs Enforcement initiated an investigation that
resulted in the seizure of a second cargo container and the
execution of a search warrant on November 7, 2003, at Zheng’s
place of business.
The jury found Zheng had imported over
$300,000 worth of counterfeit goods, including electrical
extension and power cords that bore counterfeit UL
certification Marks, counterfeit Duracell batteries,
Spider-Man toys, and Nike sandals. In addition to convicting
Zheng, the jury also found Zheng had substantially harmed the
reputations of UL, Gillette, Marvel and Nike by trafficking in
counterfeit versions of their trademarked products.
Additionally, after testimony established
that the electrical cords seized from Zheng failed to pass the
Underwriters Laboratories tests required to earn UL
certification and videotape clips showing the counterfeit
cords sold by Zheng bursting into flames when tested under
household conditions, the jury found that by selling
counterfeit UL extension cords, Zheng had consciously and
recklessly ignored the risk of serious bodily injury to the
public.
The jury also heard evidence that Zheng
attempted to bribe his way to freedom after being placed in
custody.
For more information
on UL’s anti-counterfeiting program, contact Brian
Monks in Melville, New York, by phone at
+1-631-271-6200; or by e-mail at Brian.H.Monks@us.ul.com. |
