Chinese Counterfeit Goods Ring Busted in Tennessee

The counterfeit goods were made in China, officials said

A Tunnel Hill, Ga., man’s arrest makes him the sixth person charged in an alleged conspiracy to distribute multimillion-dollar caches of counterfeit designer merchandise.

Paul Lay, 42, was arrested when police served a search warrant at his Dogwood Road home, and he is charged with possession of forged or counterfeit merchandise.

He has been held without bond in the Catoosa County Jail since his arrest on Thursday, officials said.

The first arrests in the case came Sept. 9. Qui Yi Zhang, 37; Hong Ti Show, 46; Chin Mei Show, 45; Fu Gou Show 50; and Yau Chue Chiang, 50, are all still in custody, according to authorities.

Officials said the suspects are charged with storing and selling counterfeit goods from a warehouse near the Market Place Mall off Cloud Springs Road in Fort Oglethorpe.

Bogus trademarks were found on low-quality items cheaply made in China and being sold for marketing as the real thing — from Sharpie to Nike to Coach. Some 30 different counterfeit trademarks have been found.

Fort Oglethorpe Detective Dave Scroggins said Mr. Lay is suspected of being “a major player in the conspiracy.”

Boxes of counterfeit goods were seized from his home, along with fake tags bearing the Prada designer label, Detective Scroggins said.

“You sew that tag right over a Fruit of the Loom emblem in a T-shirt, and you can sell them for a lot of money,” Detective Scroggins said.

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2007-09-19