Did you know... That CBP Sends Teams to Get a "Jump" on Fraudulent Imports?
U.S. Customs & Border Protetion / www.cbp.gov
International trade has been a major focus of CBP from its formation, and in the Homeland Security Act, the U.S. Congress required CBP to retain import and international trade specialist positions at the same level as the former U.S. Customs Service. For both CBP and the former U.S. Customs Service, a major concern has been the international manufacture of textiles and apparel.
CBP’s work extends to manufacturing sites in foreign countries. To ensure that goods are consistent with their manufacturers’ labels and export documentation, CBP uses a complex program to identify and thwart illicit practices. One of the means to address fraudulent imports is the use of textile production verification teams.
Originally known as jump teams, these teams take the investigatory practices to factories across the world. The U.S. Customs Service created “textile and apparel jump teams” in 1991 according to an Associated Press wire story published in October of that year.
The term Jump Team is of uncertain origin. It has been suggested that it refers to their tactical ability to mobilize and address issues at their source through unannounced visits and inspections. In a speech before the 1992 annual convention of the North American Textile Manufacturers Institute, Customs Commissioner Carol Hallett noted that it referred to the ability to “jump into a situation.”
The first Jump Teams were originally joint ventures by the Commerce Department and the U.S. Customs Service. During their first years of investigations, they found wide-spread abuse. By March 1992, the jump team findings led to the closure of 191 of the 209 sweater factories listed as operating in Macau because they were “fronts for Chinese exporters.”
The Macau factories were not manufacturing items as stated in their export documents. Most of the bogus factories were engaging in a practice known as illegal transshipment. This is when manufactured goods are shipped through another country to thwart U.S. import rules. In one case, there was no factory, only a post office box.
Often time, illegal transshipments occur to take advantage of preferential tariff treatment as negotiated in free trade agreements. In 2010, CBP traveled to the Youm Kwang facility in Guatemala after receiving affidavits stating it produced thread. The Textile Production Verification Team found thread that was manufactured in China and was dyed at the facility. Its labeling claimed that it was 100 percent manufactured in Guatemala.
This nefarious practice continues, and the Textile Production Verification Teams still investigate illegal transshipments. During their visits, the teams tour factories, interview senior management and review production records in an attempt to verify that merchandise is actually made in the factories and complies with all U.S. import regulations. Their work enforces international trade agreements, protects American jobs and ensures that product labeling is accurate.
ICE-Led IPR Center Seizes 70 Websites Duping Consumers into Buying Counterfeit Merchandise
U.S. Immigration and Customs Enforcement / www.ice.gov
WASHINGTON — U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI)-led National Intellectual Property Rights Coordination Center (IPR Center) seized 70 websites that were illegally selling counterfeit merchandise.
The 70 websites seized are part of Project Copy Cat, an iteration of Operation In Our Sites (IOS), and closely mimicked legitimate websites selling authentic merchandise and duped consumers into unknowingly buying counterfeit goods. Many of the websites so closely resembled the legitimate websites that it would be difficult for even the most discerning consumer to tell the difference.
The websites are now shut down and their domain names are in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of willful copyright infringement.
"This operation targeted criminals making a buck by trying to trick consumers into believing they were buying name brand products from legitimate websites when in fact they were buying counterfeits from illegal but sophisticated imposter sites located overseas," said ICE Director John Morton. "The imposter sites were simply a fraud from start to finish and served no purpose other than to defraud and dupe unwary shoppers."
A new twist in the websites seized in Project Copy Cat involved the appearance of Secure Sockets Layer (SSL) certificates. SSL certificates provide authentication for financial information, meaning consumers should be able to trust that they are sending information to the intended server and not to a criminal's server. Trusted SSL providers should only issue SSL certificates to verified companies that have gone through several identity checks. In addition to providing authentication, SSL certificates also provide encryption, enhancing the security of credit card numbers, usernames, passwords and other sensitive information. These websites, however, displayed SSL certificates, further duping the consumer into thinking they were shopping on a legitimate website, potentially putting customers' financial information at risk.
During this operation, federal law enforcement officers made undercover purchases of a host of products, including baby carriers, professional sports jerseys, language and fitness DVD sets, and a variety of clothing, jewelry and luxury goods from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the copyright holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods were obtained from federal magistrate judges.
"Every day the U.S. economy and American jobs are negatively impacted by criminal organizations engaged in the sale of counterfeit merchandise through rogue websites. Even more importantly, consumer's health and safety can be threatened when they unknowingly purchase counterfeit products," said IPR Center Director Lev Kubiak. "Our goal at the IPR Center is to protect the public's safety and economic welfare through robust intellectual property enforcement and we hope that today's enforcement actions raise the public's awareness to this pervasive crime."
This operation was the next phase of IOS, a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. These 70 domain name seizures bring the total number of IOS domain names seized in the last two years to 839. This enforcement action coincides with the two-year anniversary of the 2010 launch of IOS. Since then, the seizure banner has received more than 103 million individual views.
Of the 769 previous domain names seized, 229 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in seized domain names a period of time after a "Notice of Seizure" to file a petition with a federal court and additional time after a "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become the property of the U.S. government. Additionally, a public service announcement, launched in April 2011, is linked from the seizure banner on each of the 229 forfeited websites. This video educates the public about the economic impact of counterfeiting.
The operation was spearheaded by the IPR Center in coordination with HSI field offices in Denver, El Paso, Houston, Newark and Salt Lake City. U.S. Attorney's Offices in the Western District of Texas, Southern District of Texas, District of New Jersey, District of Colorado and the District of Utah issued the warrants for the seizures. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. The IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.
During the first phase of IOS in 2010, the IPR Center received information from the Motion Picture Association of America that a website, www.ninjavideo.net (Ninja Video), was illegally distributing pirated copies of motion pictures and other audiovisual works. Ninja Video provided its millions of visitors the ability to illegally download high quality copies of copyrighted movies including movies that were currently in theaters or not yet released.
Following the seizure of the website, search warrants were executed at the residences of the primary suspects in the United States and funds were seized from 15 separate financial accounts. To date, the Ninja Video investigation has resulted in the arrest and conviction of five of the six co-conspirators with sentences ranging from 22 months in federal prison to three years of probation with a combined restitution exceeding $470,000 to the victims. A sixth co-conspirator remains a fugitive. In addition to Ninja Video, IOS phase one also targeted eight other websites selling counterfeit merchandise in New York.
Previous website seizures include:
• First phase: 9 domain names
• Second phase: 83 domain names
• Third phase: 10 domain names
• Fourth phase: 18 domain names
• Fifth phase: 5 domain names
• Sixth phase: 17 domain names
• Seventh phase: 58 domain names
• Eight phase: 156 domain names
• Ninth phase: 10 domain names
• Tenth phase: 385 domain names
• Salt Lake City: 7 domain names
• Sustained Effort: 11 domain names
These cases are part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
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U.S. Customs and Border Protection Import Specialists and Officers Seize Counterfeit Watches Valued at $28.7 Million
U.S. Customs & Border Protection / www.cbp.gov
Laredo, Texas – The Import Specialist Enforcement Team (ISET) at U.S. Customs and Border Protection’s (CBP) Laredo Port of Entry recently seized a commercial shipment of counterfeit watches and other watches used to facilitate the importation carrying a combined retail value of $28.7 million.
In the enforcement action, a CBP import specialist at World Trade Bridge selected a shipment of watches for an enforcement examination. In the course of their examination, CBP officers and import specialists discovered possible infringement of the Louis Arden and Audemars Piguet design trademarks, which are trademark recorded with CBP. CBP subsequently on June 29 seized 10 boxes containing 1,120 watches found to be infringing on the Audemars Piguet design trademark as well as 28 boxes containing 3,080 watches determined to be used to facilitate the importation of the violative watches also were seized. The combined manufacturer’s suggested retail price, had the Audemars Piguet trademark been genuine, was $28.7 million.
“This is one of the highest valued seizures in terms of MSRP in the history of the Port of Laredo,” said Sidney Aki, CBP port director, Laredo Port of Entry. “Our ISET team has proven its excellence and its continued vigilance helps companies, especially those that register their trademarks with CBP, feel confident that their intellectual and property rights are protected.”
CBP’s vigilant enforcement of Intellectual Property Rights protects America’s businesses against the threat of unfair and illicit competition from foreign companies and prevents goods that may be dangerous to consumers or national security from entering the United States.
FDA Introduces New Safety Measures for Extended-Release and Long-Acting Opioid Medications
U.S. Food & Drug Administration / www.fda.gov
The U.S. Food and Drug Administration today approved a risk evaluation and mitigation strategy (REMS) for extended-release (ER) and long-acting (LA) opioids, highly potent drugs approved for moderate to severe, persistent pain that requires treatment for an extended period.
The REMS is part of a federal initiative to address the prescription drug abuse, misuse, and overdose epidemic. The REMS introduces new safety measures designed to reduce risks and improve the safe use of ER/LA opioids, while ensuring access to needed medications for patients in pain.
“Misprescribing, misuse, and abuse of extended-release and long-acting opioids are a critical and growing public health challenge,” said FDA Commissioner Margaret A. Hamburg, M.D. “The FDA’s goal with this REMS approval is to ensure that health care professionals are educated on how to safely prescribe opioids and that patients know how to safely use these drugs.”
The new ER/LA opioid REMS will affect more than 20 companies that manufacture these opioid analgesics. Under the new REMS, companies will be required to make education programs available to prescribers based on an FDA Blueprint. It is expected that companies will meet this obligation by providing educational grants to continuing education (CE) providers, who will develop and deliver the training.
The REMS also will require companies to make available FDA-approved patient education materials on the safe use of these drugs. The companies will be required to perform periodic assessments of the implementation of the REMS and the success of the program in meeting its goals. The FDA will review these assessments and may require additional elements to achieve the goals of the program.
“We commend the FDA for taking action to save lives by increasing access to prescriber education,” said Gil Kerlikowske, director of the Office of National Drug Control Policy. “Since day one, the Obama Administration has been laser focused on addressing the prescription drug abuse epidemic and today’s action is an important contribution to this comprehensive effort.”
ER/LA opioid analgesics are widely prescribed medicines with an estimated 22.9 million prescriptions dispensed in 2011, according to IMS Health, which provides services and information to the health care and pharmaceutical industries. It is estimated that more than 320,000 prescribers registered with the Drug Enforcement Administration (DEA) wrote at least one prescription for these drugs in 2011.
ER/LA opioid analgesics are associated with serious risks of overuse, abuse, misuse and death and the numbers continue to rise. According to the Centers for Disease Control and Prevention, 14,800 Americans died from overdoses involving opioids in 2008. In 2009, there were 15,597 deaths involving these medications – nearly four times as many deaths compared to 1999.
“Misuse and abuse of prescription opioids is a complex problem and demands a holistic response,” said John Jenkins, M.D., director of CDER’s Office of New Drugs. “The new REMS program is one component of a multi-agency, national strategy to address this important public health issue.”
Key components of the ER/LA opioid analgesics REMS include:
- Training for prescribers. Based on an FDA Blueprint, developed with input from stakeholders, educational programs for prescribers of ER/LA opioids will include information on weighing the risks and benefits of opioid therapy, choosing patients appropriately, managing and monitoring patients, and counseling patients on the safe use of these drugs. In addition, the education will include information on how to recognize evidence of, and the potential for, opioid misuse, abuse, and addiction, and general and specific drug information for ER/LA opioid analgesics.
- Updated Medication Guide and patient counseling document. These materials contain consumer-friendly information on the safe use, storage and disposal of ER/ LA opioid analgesics. Included are instructions to consult one’s physician or other prescribing health care professional before changing doses; signs of potential overdose and emergency contact instructions; and specific advice on safe storage to prevent accidental exposure to family members and household visitors.
- Assessment/auditing. Companies will be expected to achieve certain FDA-established goals for the percentage of prescribers of ER/ LA opioids who complete the training, as well as assess prescribers’ understanding of important risk information over time. The assessments also cover whether the REMS is adversely affecting patient access to necessary pain medications, which manufacturers must report to FDA as part of periodic required assessments.
It is expected that the first continuing education activities under the REMS will be offered to prescribers by March 1, 2013.
There is no mandatory requirement that prescribers take the training and no precondition to prescribing ER/LA opioids to patients. However, the Obama Administration endorsed a mandatory training program on responsible opioid prescribing practices in April 2011 as part of its comprehensive plan to address the epidemic of prescription drug abuse. The program, which would be linked to DEA registration by providers, would require legislative changes that are being pursued by the Administration.
The FDA continues to support this approach, but absent the needed legislation, intends to exercise its authority to require mandatory elements for companies and voluntary elements for prescribers – all of which are important and necessary steps to help curb the misuse and abuse of ER/ LA opioid analgesics, without being overly burdensome.
For more information:
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.
Louisville CBP Uncovers Dirt on Harmful "Bath Salts" Drugs
U.S. Customs & Border Protection / www.cbp.gov
Louisville, Ky. – This year, U.S. Customs and Border Protection officers working express consignment operations at the UPS hub in Louisville, Ky. continue to intercept an increasing number of dangerous imported “bath salts” designer drugs pouring into the U.S. Chicago CBP Laboratories and Scientific Services chemists have been working with CBP officers to test samples and uncover emerging trends relating to these harmful and unpredictable synthetic substances.
“Bath salts” can contain the Schedule I controlled substances Methylenedioxypyrovalerone (MDPV), Mephedrone, and Methylone; or they may contain one of the many synthetic cathinone derivatives related to the parent compound cathinone, a naturally occurring psychoactive drug found in khat. 
These drugs are ordered through the Internet and typically arrive from China manifested as “bath salts” or “plant food,” because they look like Epsom salts or the white powdery plant food that help make cut flowers last longer. Street names for “bath salts” are Plant Food, Ivory Wave, Purple Wave, Vanilla Sky, Zoom, and White Dove. They are sold clandestinely under the counter at gas stations, convenience stores and head shops in small foil packets or plastic baggies for $10-$75 per 50-milligram packet.
“Bath salts” users experience a high similar to cocaine, methamphetamines or LSD. Symptoms also include hallucinations, extreme paranoia, psychosis, tremors, seizures, high blood pressure, chest pains, bowel control loss, kidney failure, and extremely violent behavior.
"The chemical structures of these substances keep changing which is why they are called “designer drugs,” said Neele Shepard, Chicago CBP Lead LSS Chemist. “Every week, our CBP chemists analyze the contents of these incoming packets which change in an effort to try and circumvent the law. The substances are continually evolving so there is no medical research showing what the effects are. What we have seen is that “bath salts” are very diverse and take many forms. By adding different atoms or functional groups to the structure, results in the way the human body responds could range from weird to dangerous.”
In the first eight months of fiscal year 2012, from October 2011 to May 2012, CBP officers at the UPS express consignment facility in Louisville intercepted 32 shipments of synthetic powders and tablets weighing approximately 70 pounds. During the same period in FY 2011, there were only 15 seizures weighing approximately 35 pounds. For the entire FY 2011, October 2010 – September 2011, CBP officers in Louisville made 28 seizures of “bath salts” weighing approximately 74 pounds.
“As CBP seizures of “bath salts” are on the rise, I would like to warn consumers who think all products ordered on the Internet are legal and safe. That is not true,” said Steven Artino, Chicago CBP Acting Director of Field Operations. “What consumers don’t know is that these drugs are formulated in foreign countries by street chemists who are not regulated. Consumers who order “bath salts” have no idea of what they are really ingesting from one dosage to the next. I want to congratulate the CBP officers and chemists who are working together on intercepting these highly irregular, unpredictable, and sometimes lethal substances.”
Federal, state and local law enforcement agencies have tangled with numerous citizens who have used “bath salts” and have named them as “the worst of the worst” in synthetics drugs and also an imminent threat to public safety. Reported incidents involving “bath salts” and officer safety include use of force, injuries, and hospitalization in addition to referrals to mental health facilities and deaths of “bath salt” users.
33 Charged in Multi-Million Dollar International Loan Fraud Scheme
U.S. Department of Homeland Security / U.S. Immigration and Customs Enforcement / www.ice.gov
July 10, 2012
33 charged in multi-million dollar international loan fraud scheme
32 defendants charged in a 62-count indictment, one other charged via criminal complaint for defrauding more than 2,000 victims, who lost more than $2.7 million to this loan fraud scheme
BUFFALO, N.Y. – A federal grand jury in Buffalo has returned a 62-count indictment charging 32 defendants with participating in a large scale, international loan fraud scheme. The alleged scheme targeted more than 2,000 victims across the United States, and obtained millions of dollars. This investigation is being conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
ICE Director John Morton, along with U.S. Attorney William J. Hochul Jr., Western District of New York, announced that authorities arrested the following individuals:
Brynell Jones, 31, of Detroit;
Shardonya Fletcher, 26, of Detroit;
Gerri Britton, 40, of Wyandotte, Mich.;
Candice McGraw, 22, of Grand Rapids, Mich.;
Sherece Payne, 22, of Brooklyn, N.Y.;
Deborah Boshears, 40, of Wyandotte, Mich.;
Ashely Cain, 21, of Brooklyn, N.Y.;
Luna Noncent, 23, of Brooklyn, N.Y.;
Kevin Chenevare, 33, of Wyandotte, Mich; and
Dianne Jaichon, 36, of Windsor, Ontario, Canada
All were arrested today, other than Jaichon, who was arrested July 1, 2012. Chenevare was arrested today for wire fraud conspiracy pursuant to a criminal complaint.
The U.S. government will seek the arrest of other defendants, located in Canada, pursuant to the provisions of mutual legal assistance treaties.
One defendant has already pleaded guilty to wire fraud in U.S. district court in Buffalo and is scheduled to be sentenced in August.
All of the defendants are charged with conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison and a fine of $250,000, and conspiracy to launder money, which carries a maximum sentence of 20 years in prison and a fine up to twice the amount of property involved in the crime. Boshears is also charged with wire fraud, which carries a maximum penalty of 20 years in prison and a fine of $250,000. Others named in the indictment are still at large and charged with multiple substantive counts of wire fraud and money laundering.
"As a result of this investigation by Homeland Security Investigations, a major international criminal network has been disrupted," said ICE Director Morton. "Conniving and stealing is over for this den of thieves. Instead of manipulating those struggling to make ends meet, the 33 members of this ring now have to answer criminal charges in federal court. Had they not been caught, these con artists would still be profiting from their charade. HSI and our law enforcement partners will continue to aggressively pursue criminals who exploit the financial system and try to take advantage of vulnerable citizens."
"This case demonstrates the real-world threats that continue to be present in the on-line domain," said U.S. Attorney Hochul. "Here, potential loan applicants were misled by Internet advertising and the clever creation of fictitious companies with names similar to those with proven track records. Customers of all types should be reminded that when dealing with anyone on-line – whether to purchase goods, or to provide personal or financial information about yourself – it is especially important to do your homework. Do not rely solely on online advertisements or emails, ask questions, and do not be pressured. The public can also always contact the Better Business Bureau, state and federal law enforcement agencies, or the website www.stopfraud.gov for more valuable information."
According to the indictment, the defendants were involved in a massive loan fraud scheme being operated over the Internet out of cities in the United States and Ontario, Canada, since 2005. The scheme utilized numerous web sites and search engines to direct would-be loan applicants to apply for unsecured personal loans online with non-existent financial companies. Representatives of these virtual companies would contact the loan applicants, advise them they were approved for loans, and then direct them to make an initial security deposit payment through Western Union to money couriers in order to receive the loan proceeds. Despite making the requested initial payments, the victims never received the loans or refunds of their money.
Once the victims realized they had been defrauded, the defendants operating the web sites disengaged the old sites and established web sites for new fictional companies. The on-line listings for these companies included fictitious addresses in the United States and often imitated the names of actual financial firms to give the appearance of legitimacy.
The investigation has identified more than 2,000 victims who lost more than $2.7 million to the loan scheme.
The indictment is the culmination of an investigation on the part of HSI Buffalo, with assistance provided by U.S. Customs and Border Protection, Canada Border Services Agency and the Federal Trade Commission.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Fauzia K. Mattingly is prosecuting this case on behalf of the U.S. government.
NY Travelers: Helping to Avoid Traffic & Construction Delays This Summer
From the Office of Governor Andrew M. Cuomo / http://www.cc.ny.gov/view.cfm?view=9F074DA0-5056-9D2A-108D9BCDF4F45AE6_5AF8BBBC-C9E5-589F-E7324809CEC2321B
Dear Fellow New Yorker,
Before you hit the road for your summer travel plans, be sure to check out the new www.511NY.org to help plan your route. This new website allows you to view all construction and traffic alerts statewide in real time on an interactive map, as well as view live, on-the-ground conditions via traffic cameras. The new 511NY service is also available as an app for Android, iPhone, and Blackberry, delivering real-time updates right to your phone.
You can also create your own MY511NY page, entering the routes you take most often – whether it’s your daily commute or frequent trips to see family. Using MY511NY, you can get the latest alerts along these routes by visiting your page, or have them sent directly to your phone.
As part of Governor Cuomo’s NY Works program, New York is building critical infrastructure projects in all corners of the state, including repairing thousands of miles of roads and hundreds of bridges. These projects are creating tens of thousands of jobs for New Yorkers.
The new 511NY website and mobile applications will help New Yorkers avoid delays and construction areas and allow for safer and more efficient travel this summer.
The new New York is working for you and your family.
Sincerely,
The Office of the Governor
Guard Your Grill: Patients Accidentally Swallow Wire Brush Bristles, Hospital Reports
Read entire article at: ABC News