Investigator digs into ladies' purses to bust counterfeiters

A private investigator's sharp eye while she was shopping led to the recent bust in Reno that turned up more than $1 million worth of knock-off designer brand handbags

The goods were spotted by Nikki Chandler, an investigator with Reno's Spencer-Martin and Associates, who found the counterfeit goods while she was out shopping. Chandler wasn't on duty at the time she spotted the suspicious purses even though she sometimes is paid to go shopping.

She reported back to her agency, then purchased a purse for proof.

Spencer-Martin called in a federal agency, U.S. Immigration Customs Enforcement, to make the arrest.

Mark Cutchen, special agent, says, "We brought them in. It's a violation of federal law to bring counterfeit items into the country."

The retail outlet and owner remain unidentified pending the filing of charges. That could take several months, says Cutchen.

Most counterfeits are found in exactly that fashion, says David Spencer of Spencer-Martin and Associates. Someone reports to federal officials that that they saw the product at a ridiculously low price such as when designer-brand purses costing hundreds and even thousands of dollars are offered, as counterfeits, for $20.

LVMH Fashion Group in New York retains Spencer-Martin to investigate this market. To aid the private investigators, LVMH provides guide booklets "Facts on the Fakes" for reference. With guidebook in hand, a sharp-eyed investigator can spot the discrepancies.

Spencer-Martin works the entire state of Nevada, with seven investigators on staff, some of whom spot for Prada and Guicci, Celine and Kenzo as well as DNKY, Givenchy and Louis Vuitton.

And yes, the fakes follow the fashion trends.

"Years ago it was Levi's, and Wranglers jeans," says Spencer. "Now purses and sunglasses are the two hottest counterfeit categories."

Nike, and Reebok are ongoing popular counterfeits. So is anything with the NASCAR logo.

There's a NASCAR resurgence of popularity, he says.

"You can buy NASCAR anything: clothes, sunglasses, household items like clocks, and of course, model cars of racecars."

NFL logo wear is also big. "Pick any major sport, they all have patented logos. They all sell merchandise," Spencer says.

The legal manufacturers are fighting back. The NFL airs a television commercial that brings a kangaroo hopping into the locker room; it's stealing player's jerseys. Then the real mascot arrives, wearing a chicken suit. The message: Buy authentic logowear at NFL.com.

The U.S. Immigration Customs Enforcement office in Reno investigates money laundering, smuggling of illegal aliens, and child pornography. But it's ramping up its work on counterfeit CDs, DVDs, watches, sunglasses, handbags, and even designer umbrellas. It's also eyeballing National Football League and Major League Baseball jerseys and hats.

Consumers driving the counterfeit trade range from young people willing to spend on pricey eyewear to the older people who want expensive purses, women as well as the men who buy for women.

But some buy in innocence.

"A lot of people buy, thinking the merchandise is discounted because it's out of style," says Spencer. "But Louis Vuitton, at the end of every year, ships all unsold goods back to France, where they destroy it."

He adds that true Louis Vuitton is found only in specialty shops none of them in Reno.

When a major counterfeit bust such as the recent one in Reno is publicized, the business dries up for a while, says Spencer. Merchants stash the goods in a back room. But some audacious shoppers will still ask at stores: do you have any...

There's no certain kind of store that specializes in counterfeits, says Cutchen. His agency picks up at least one International Property Rights violation every couple of months on average by walking a beat of stores and malls plus mom-and-pop shops.

He adds, "It seems like anything that can be counterfeited will be counterfeited."