Wednesday, December 1, 2004

FOUR AUTO PARTS DEALERS CHARGED IN SEIZURE OF COUNTERFEIT AUTO PARTS VALUED AT $700,000; ALLEGEDLY SOLD THOUSANDS OF BOGUS PARTS -- INCLUDING IGNITION COILS, SWAY BARS AND BRAKE PADS -- CLAIMING THAT THEY WERE GENUINE FORD AND CHRYSLER PRODUCTS WHEN ACTUALLY OF INFERIOR GRADE AND POTENTIALLY UNSAFE

Queens District Attorney Richard A. Brown, joined by Police Commissioner Raymond W. Kelly and Taxi and Limousine Commission Commissioner and Chair Matthew W. Daus, today announced that four wholesale auto parts dealers in Queens and Manhattan have been charged in the seizure of thousands of counterfeit auto parts with a value of $700,000-- including ignition coils, sway bars and brake pads -- packaged, stamped and distributed as Ford Motor Company and Daimler Chrysler manufacturer-quality replacement parts that actually were inferior grade and potentially unsafe fabrications.

District Attorney Brown said, “The defendants have been accused of trademark piracy and charged with selling counterfeit auto parts of inferior grade that are potentially unsafe. The confiscated auto parts contain counterfeit packaging, printing and labeling along with bogus serial numbers. Trademark counterfeiting is a serious problem for American business and industry that cheats honest consumers, fleeces manufacturers of millions of dollars in lost revenues and causes additional losses in tax revenues for the City and State. My office will continue to work with the Police Department and the automotive industry to close down outlets selling counterfeit replacement parts and prosecute those involved to the full extent of the law.”

Police Commissioner Raymond Kelly said, “In addition to the officers from the Department’s Organized Crime Investigation Division, I want to hail the efforts of the Taxi and Limousine Commission and the Queens District Attorney for their excellent work on this case.”

Commissioner Daus said, "We are pleased that the Taxi and Limousine Commission was able to partner with NYPD and the District Attorney's Office in the early and most crucial stages of this important investigation. Stemming the flow of these counterfeit auto parts was a critical action in terms of protecting public safety and ensuring continued confidence in the medallion taxi industry."

The District Attorney identified the defendants as Boaz Bagbag,40, of 304 East 78th Street in Manhattan; Paul Lasrado, 44, of 13725 Northwest 11th Street, Pembroke Pines, Florida; Gagan Kharbanda, 27, of 86-42 107th Street in Richmond Hill, Queens and Mordekay Levy, 39, of 455 Hungry Harbor Road in North Woodmere, New York. Defendants Lasrado and Levy have been charged with Trademark Counterfeiting in the First Degree and face up to 15 years in prison if convicted. Defendants Bagbag and Kharbanda have been charged with Trademark Counterfeiting in the Second Degree and face up to four years in prison if convicted.

The investigation began in May when NYPD detectives obtained information about the alleged illegal sale of counterfeit automotive parts.

NYPD detectives assigned to the Organized Crime Investigation Division accompanied by New York City Taxi and Limousine Commission inspectors went to several automotive repair garages in Manhattan that service medallion taxi cabs and New York City government vehicles. They discovered that counterfeit automotive parts were being used in repairs on some vehicles. Detectives traced the supply invoices to various wholesale outlets in Manhattan and Queens.

During the investigation NYPD detectives executed court-authorized search warrants drafted by the District Attorney’s Economic Crimes Bureau on six automotive parts outlets -- four in Queens and two in Manhattan. The first site -- Black & Yellow Major Auto Parts at 46-44 11th Street in Long Island City -- was raided on October 27, 2004. Five additional sites were raided on November 23, 2004 including MHAP Inc. at 50-04 49th Street in Woodside, Queens; Venus AutoPart at 10-09 46th Road in Long Island City, Queens and three DMP Company, Inc. locations at 10-25 46th Road in Long Island City, Queens; 447 Tenth Avenue in Manhattan (doing business as Taxi Parts, Inc.) and 502 West 35th Street in Manhattan.

Detectives recovered from all six locations thousands of assorted automotive parts including brake pads, tail lights, air conditioning accumulators, shafts, master cylinders, idler arms, sway bar links, tie rods, stabilizer arms and water pumps. The confiscated property has a total value wholesale of about $700,000.

District Attorney Brown said, “Automotive industry representatives have indicated that counterfeit auto parts have recently started turning up in New York City where they are being sold in outlets in all five boroughs. The automotive industry estimates that it loses globally about $12 billion a year from the illegal sale of counterfeit replacement automotive parts that are chiefly produced in China and the Middle East.”

The defendants have been arraigned in Queens Criminal Court. Defendants Bagbag, Kharbanda and Levy were released on their own recognizance. Defendant Lasrado was released on $25,000 bail.

District Attorney Brown, Police Commissioner Kelly and Commissioner Daus commended the Ford Motor Company and Daimler Chrysler for their cooperation and assistance in the investigation.

The investigation was conducted by Detective Harry Mediavilla of the NYPD Organized Crime Control Division under the supervision of Deputy Inspector Brian O’Neill and the overall supervision of Chief Douglas Ziegler of the Organized Crime Control Bureau. The investigation was assisted by Taxi and Limousine Commission Chief of Staff Ira Goldstein, First Deputy Commissioner Andrew Salkin and his Chief of Staff Eric Kim, Senior Investigator Leroy Marshall and Investigator Lester Liburd.

The case is being prosecuted by Assistant District Attorney Mariana Zelig of the District Attorney’s Economic Crimes Bureau under the supervision of Assistant District Attorneys Gregory C. Pavlides, Bureau Chief, and Diane M. Peress, Deputy Bureau Chief, and the overall supervision of Executive District Attorney for Investigations Peter A. Crusco and Deputy Executive Assistant District Attorney for Investigations Linda M. Cantoni.

It should be noted that criminal charges are merely an accusation and that defendants are presumed innocent until proven guilty.