Tag: conceal

CBP Counterfeit Handbag Seizure

Posted by Jason P. Wapiennik on September 30, 2013 with 2 Comments

I am sharing this news releases from Customs & Border Protection because it has to deal with topics that we have discussed in previous articles, namely seizures by CBP for counterfeit importations. We previously discussed the notion of gray market goods and touched on the topic of counterfeit imports in our article called Trademark Infringement: Importing Gray Market Goods and Seizure by Customs. This article only says that the bags were “in violation of the Hermes protected trademark” but does not specifically say how they were in violation; because the news release goes on to say that these bags were concealed within a shipment of non-infringing merchandise it seems unlikely that this was an innocent mistake by an inexperienced importer. It shows an intent to commit a fraud.

Los Angeles — U.S. Customs & Border Protection (CBP) officers and import specialists at the Los Angeles/Long Beach Seaport complex seized 16,053 counterfeit Hermes handbags in nine shipments from June 6 through September 17. All were in violation of the Hermes protected trademark.

Their combined domestic value of $295,665 contrasted to the manufacturer suggested retail price of $210,785,475 had they been genuine, illustrates the potentially high profit margins in such an illegal venture.

“CBP officers are trained to identify and interdict counterfeit goods, and this is a great example of how their training and expertise are employed every day in our ports of entry,” said CBP Director of Field Operations in Los Angeles Todd C. Owen. “These counterfeiters are not only cheating the legitimate designers and manufacturers of protected trademark merchandise, but also the public and the U.S. government,” he added.

Eight of the shipments were coming from China, one from China via Hong Kong. Two had the knock-offs hidden in the nose of the containers with concealing attempts of packing legitimate, non-infringing merchandise behind them.

Five different importers sent the shipments. All were destined to surrounding areas of Los Angeles except for one destined to Texas.

Approximately $1.26 billion worth of counterfeit goods originating overseas were seized by CBP in 2012. China, Hong Kong, Singapore, India and Taiwan are the top five countries of origination for counterfeit goods seized by CBP.

Nationwide, handbags and wallets comprised the greatest number of counterfeit items seized by CBP last year, with the value of seizures up 142 percent compared to 2011. Of the approximately $511 million in handbags and wallets seized, more than $446 million came from China.

Violations of trade laws, including violations of intellectual property rights laws can be reported to CBP online. ( e-Allegations Submission )

It looks like someone is going to be getting a notice of penalty CBP’s Fines, Penalties and Forfeiture’s office very soon. If you are facing penalties from CBP for items you have imported or for your import practices, call my office at (734) 855-4999 or e-mail us through our contact page.

$296,010 Customs Currency Seizure

Posted by Jason P. Wapiennik on September 19, 2013

From the CBP news releases:

U.S. Customs and Border Protection officers working at the Imperial Valley ports of entry over the weekend intercepted [ . . . ] $296,010 in undeclared currency . . . .

[ . . . ]

[On September 6, 2013], at about 5:00 p.m., CBP officers were conducting southbound inspections of travelers heading to Mexico through the Andrade port of entry. Officers targeted a 2001 Chrysler Town and Country minivan and referred the 56-year-old driver and his passenger, a 54-year-old female, both Mexican citizens, for further examination.

Inside the vehicle, CBP officers discovered a large box among several other household items. The box was emptied during the inspection, revealing bundles of undeclared currency totaling $296,010.

[ . . . ]

“CBP officers at the Imperial Valley ports of entry have proven to be exceptionally skilled at discovering unconventional concealment methods and these seizures are illustrative of those skills,” said Pete Flores, Director of Operations for the San Diego Field Office.

All subjects were turned over to the custody of Homeland Security Investigation (HSI) agents for further processing and were transported to the Imperial County Jail to await arraignment.

It is a federal offense not to declare currency or monetary instruments totaling more than $10,000 to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements. Failure to declare may result in seizure of the currency and/or arrest.

If you have money seized and receive a notice of seizure, do not decide how to respond to a CAFRA Notice without first consulting an attorney. Any mistake or error in judgment you make can cost you dearly.The Petition process is a legal process. The petition itself is and should always be a legal document, no different than in any other legal proceeding, that contains detailed factual narrative, what led to the seizure, a review of the relevant law, regulations and Custom’s own guidelines concerning the criteria for remission. When the facts allow for it, our Petition will always include a strong argument for return of the money in full, or even when there is a valid basis for the currency seizure, a strong argument for the money to be returned upon payment of a fine in the smallest amount of money possible, rather than forfeiture of all your money.

Arizona CBP Officers Seize $300,000 in Cash

Posted by Jason P. Wapiennik on September 12, 2013

From U.S. Customs & Border Protection:

A 35-year-old Douglas, Ariz. man was arrested Friday for attempting to smuggle $300,000 in unreported U.S. currency into Mexico through the Port of Douglas.

Customs and Border Protection officers conducting outbound inspections selected a Toyota truck, driven by Jerry Joseph Del Rio, for further inspection. When officers searched the vehicle they located seven packages of U.S. currency hidden inside of a compartment in the truck cab. The truck and cash were processed for seizure.

Del Rio was turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP’s Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation’s food supply and agriculture industry from pests and diseases.

If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through our contact page. We are able to assist with currency seizures around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

Please read these other articles:

Detroit CBP seizes $271,463 in Unreported Currency

Posted by Jason P. Wapiennik on September 3, 2013

A news release from Customs & Border Protection that hits close to home, in my own Port of Detroit. Unfortunately for the people involved this story, their currency seizure did not have an outcome similar to those handled by Great Lakes Customs Law.

Detroit — On August 22, U.S. Customs and Border Protection (CBP), at the Detroit Metropolitan Airport seized $271,463 from a lawful permanent resident of the United States and his daughter, a United States citizen, after they both failed to report the currency to CBP officers.

Hekmat and Bedeel Bahnam arrived in Detroit on a flight from Amman, Jordan. They initially denied carrying $10,000 or more in U.S. currency or its equivalent in foreign currency. CBP Officers searched their luggage and discovered $271,463 in U.S. and Iraqi currency. The Bahnam’s were arrested and turned over to agents from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). They were charged with bulk cash smuggling and conspiracy and face Federal prosecution.

“You must report to CBP that you are carrying $10,000 or more in U.S. dollars or equivalent foreign currency or other monetary instruments when you travel into or out of the United States.” said Devin Chamberlain, CBP Detroit (Airport) port director. “There is no limit as to how much currency travelers can import or export. However, the law requires travelers to report when they carry at least $10,000 in monetary instruments. Violators may face criminal prosecution and forfeiture of the undisclosed funds.”

Please read these other articles:

CBP Officers at Downtown Port Seize Almost $830,000 in U.S. Currency bound for Mexico

Posted by Jason P. Wapiennik on August 28, 2013

The cost of gas these days. Another creative smuggler, but not creative enough. CBP reports on a recent bulk cash smuggling attempt as follows:

Calexico, Calif. — U.S. Customs and Border Protection officers arrested a woman on Friday after they discovered $829,980 in unreported U.S. currency hidden in the gas tank of the vehicle she was driving.

The incident occurred at about 12:30 p.m. on August 9th, when CBP officers, together with members of the Imperial Valley Border Enforcement Security Task Force (IV-BEST), were

conducting southbound inspections of travelers heading to Mexico through the Calexico downtown port of entry. Officers targeted a 2007 Honda Accord and referred the driver for further examination.

During an intensive inspection that included an alert from a currency and firearms detector dog, officers discovered 39 vacuum sealed packages of U.S. currency concealed inside the vehicle’s gas tank.

CBP officers arrested the driver and seized the money and vehicle.

The driver, a 47-year-old Mexican citizen, was turned over to the custody of Homeland Security Investigation (HSI) agents with the Imperial Valley Border Enforcement Security Task Force who transported her to the Imperial County Jail.

CBP placed an immigration hold on the driver to initiate removal from the United States at the conclusion of her criminal proceedings.

It is a federal offense not to declare currency or monetary instruments totaling more than $10,000 to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements. Failure to declare may result in seizure of the currency and/or arrest.

If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through our contact page. We are able to assist with currency seizures around the country, including Philadelphia, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

Baltimore CBP Seizes $44K in Unreported Currency

Posted by Jason P. Wapiennik on August 26, 2013

CBP in Baltimore has made another news release about currency seizures for currency reporting requirement violations conducted at their port. This time we have some visual support for the story:

Baltimore — U.S. Customs and Border Protection (CBP), at Baltimore Washington International Thurgood Marshall Airport (BWI) seized $44,783 yesterday from a Nigerian man for violating federal currency reporting regulations.

The passenger, who arrived to BWI from London, United Kingdom and destined for Washington, D.C., repeatedly declared possessing only $5,000. While examining the passenger’s luggage, CBP officers discovered multiple envelopes wrapped in clothing that contained U.S. and foreign currency totaling the equivalent of $45,283.

There is no limit to how much currency travelers can import or export; however federal law requires travelers to report amounts exceeding $10,000 in U.S. dollars or equivalent foreign currency.

CBP officers seized $44,783 and returned $500 in U.S. currency to the passenger for humanitarian relief. CBP officers also advised the traveler how to petition for the return of his seized currency.

“Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges,” said Susan Thomas, Acting CBP Port Director for the Port of Baltimore. “The traveler was given multiple opportunities to truthfully declare his currency. The easiest way to hold on to your money is to report it.”

In addition to currency interdiction, CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, prohibited agriculture products and other illicit items.

So many times I read this news releases and just wonder what people are thinking when they declare having a substantial amount of money, but not enough to put them over the reporting requirement. Like here the guy declares $5,000, but really he’s carrying over $45,000. Declaring a lesser amount than you are actually transporting does not mitigate the penalty for a seizure nor does it prevent Customs from seizing your money. In certain circumstances, Customs can allow for human error and remit a seizure on site when the amount reported is not far off from what is actually being transported; but there’s no way a person can think that by reporting $5,000 when you’re actually carrying $40,000 more is going to give you any advantages. And by reporting $5,000, it seems highly likely that Customs is going to want to verify what you are telling them by taking you to a secondary inspection, going through your baggage, and counting what they find.

If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through ourcontact page. We are able to assist with currency seizures around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

CBP Seizes $34,685 in Unreported Currency in Puerto Rico

Posted by Jason P. Wapiennik on August 22, 2013 with 1 Comment

In another interesting news release, CBP reports on a monetary instrument/currency seizure that occured in Puerto Rico:

San Juan, Puerto Rico — U.S. Customs and Border Protection (CBP) officers seized $34,685 in unreported currency last Thursday from a passenger arriving at the Luis Munoz Marin International Airport from Venezuela.

Tetsuro Nakada, 64, of Florida, failed to accurately declare having in his possession $15,335 and seven (7) checks totaling $19,350.

Nakada provided incorrect information concerning the amount of money he was carrying to federal agents. CBP officers found an envelope with $12,000, another envelope inside a book with $3,335, and a small plastic bag with 7 checks totaling $19,350.

The currency was seized under bulk cash smuggling laws. Homeland Security Investigations (HSI ) special agents arrested Nakada and will proceed with an investigation.

“The unreported cash that we seize has an impact on criminal organizations by making it more difficult for them to further their illicit activities,” said Juan Hurtado, San Juan Area port director. “CBP officers remain vigilant generating important enforcement activity regularly.”

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the United States. However, if the quantity is $10,000 or higher, they must formally report the currency to CBP. Failure to report may result in seizure of the currency and/or arrest.

It’s kind of reverse engineer the facts and figure out what went wrong here. Certainly, any misreport of the amount of monetary instruments, including cash and foreign currencies, is the most classic and simplest type of violation of the currency reporting requirements. In addition to a failure to report the correct amount of money (by how much we are not told), there is potentially a violation of a bulk cash smuggling laws for “concealing” the money in the envelope and in a book. Yes, that’s really as complicated as it needs to get in terms of concealment for the government to allege bulk cash smuggling; but, as I have previously discussed in another article about bulk cash smuggling, bulk cash smuggling must also show concealment with the intent to evade the reporting requirement.

However, as we discussed in another article on what monetary instruments need to be reported, not all types of checks are subject to the monetary instrument reporting requirement. I think the risk of carrying checks, even when not in bearer form could potentially be too risky to advise any client to do because the likely result will be an allegation of a structuring violation if you are trying to use use the checks to defeat the reporting requirement.

CBP in Southern Arizona Seizes $100K In Cash

Posted by Jason P. Wapiennik on August 20, 2013

The currency reporting requirements were designed, in part, to give the government additional abilities to catch people involved in money laundering. Wikipedia, in its article on money laundering, explains that:

Money laundering is the process of concealing the source of large amounts of money that have been gained through illegitimate means. Money evidently gained through crime is “dirty” money, and money that has been “laundered” to appear as if it came from a legitimate source is “clean” money. Money can be laundered by many methods, which vary in complexity and sophistication.

Therefore, it is with great irony that I share with you the following news release from Customs involving a currency seizure resulting from an effort to smuggle money out of the United States and into Mexico by concealing it in a box of laundry detergent.

Nogales, Ariz. —A southern California woman was arrested Saturday for attempting to smuggle $100,000 in unreported U.S. currency into Mexico through the Dennis DeConcini Port.

Customs and Border Protection officers conducting outbound inspections selected a Honda sedan, driven by Blanca Gabriela Medina, 29, of El Monte, Calif., for further inspection. When officers searched the vehicle, they located 10 packages of U.S. currency hidden in a box of laundry detergent. The vehicle and cash were processed for seizure. Medina was turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

And the best part of all, the picture:

If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through our contact page. We are able to assist with currency seizures around the country, including Philadelphia, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

CBP Currency Seizures in Philadelphia for Violations of the Currency Reporting Regulations

Posted by Jason P. Wapiennik on August 15, 2013

CBP in Philadelphia has really stepped up their news releases concerning currency seizures. Recently, there is a new release which I quote in part below. The Port in Philadelphia always gives us the most detail in the currency seizures, making it ripe for my commentary. Thus, I have put my own emphasis in bold lettering and my comments in [brackets].

A U.S. woman learned a very difficult lesson Sunday at Philadelphia International Airport after U.S. Customs and Border Protection (CBP) officers seized $39,570 that she failed to truthfully report to officers.

The woman, who was not criminally charged [though she could have been, as I write about here], arrived from Portugal with a Portuguese friend. Both women were referred to a secondary examination after both reported possessing more than $10,000 in currency [note that though both reported over $10,000, the report still must be accurate] – the U.S. woman claimed $30,620; the Portuguese woman $20,700. During the secondary examination, CBP officers learned that $40,570 of the combined $51,320 belonged to the U.S. woman [which is a structuring violation if the money was given to her travelling companion to avoid the reporting requirement]. CBP released $1,000 to the U.S. woman for humanitarian purposes and seized the remaining $39,570. Officers advised her how to petition for the seized currency. [And she no doubt is waiting for notice of seizure and election of proceedings form. Read about how to respond to a currency seizure here.]

CBP officers also assessed a $500 mitigated currency reporting penalty to the Portuguese woman. It was one of six currency reporting penalties for a combined $3,500 in penalties that CBP officers assessed to travelers in the two-week period from July 21 to August 4.

There is no limit to how much currency that travelers can bring into, or take out of the United States. Travelers are required to formally report amounts of $10,000 or more in U.S. dollars, equivalent foreign currency, or other monetary instruments.

“CBP derives no great pleasure from seizing travelers’ currency. [Institutionally, perhaps, but the occasional seizing agent no doubt takes some pride in their accomplishments.] However, there are consequences for failing to comply with U.S. laws,” said Allan Martocci, CBP port director for the Area Port of Philadelphia. “We hope that word of these penalties will compel these and other travelers to be honest with us and to truthfully declare what they are bringing to the U.S.”

The remaining five currency reporting penalties included:

July 29, CBP officers assessed a $500 penalty to a 37-year-old Nigerian man who reported $8,500, but officers discovered that he possessed $11,400.
July 27, CBP officers assessed a $500 penalty to a 76-year-old Nigerian man who reported $5,000, but officers discovered that he possessed $11,622.
July 26, CBP officers assessed a $500 penalty to a 53-year-old Italian man who reported $7,000 in U.S. dollars, 250 Euros and 500 British pounds. Officers discovered that the man possessed $10,071 in U.S. dollars, 1,150 Euros and 1,500 British pounds, equivalent to $13,213 in U.S. dollars.
July 23, CBP officers assessed a $1,000 penalty to a 68-year-old Italian man who officers found to have structured $24,644 between himself, his brother and his girlfriend to evade reporting requirements for possessing more than $10,000.
July 21, CBP officers assessed a $500 penalty to a 38-year-old Ghanaian woman who reported $9,000, but officers discovered that she possessed $11,870.
Privacy laws prohibit CBP from releasing their names as no subjects were criminally charged.

CBP routinely conducts inspection operations on arriving and departing international passengers and cargo, and searches for terrorist weapons, illicit narcotics, unreported currency, counterfeit merchandise, and prohibited agriculture and other products.

If you have considered your options and decide in you want to hire an lawyer, or have other questions, please contact us by calling (734) 855-4999 or by clicking here – it’s almost never too late to get a lawyer involved. We will be happy to answer any questions you have and explain the process to you.

If you have other questions about currency seizures by U.S. Customs and Border Protection, please read these other articles:

$50,000 Currency Seizure at Brownsville Port

Posted by Jason P. Wapiennik on August 13, 2013

We republish below a recent money seizure by U.S. Customs and Border Protection (CBP) which was effected in Brownsville, as follows:

On June 13, 2013, CBP officers working outbound enforcement operations at the Brownsville and Matamoros International Bridge came in contact with a 1996 Ford Crown Victoria as it attempted to exit the United States and enter Mexico. The driver, a 24 year-old United States citizen from Brownsville, Texas was referred to secondary for further inspection. In secondary, a search of the Crown Victoria resulted in the discovery of six packages of bulk U.S. currency [$50,000] hidden within the vehicle.

CBP officers seized the currency; the driver has been transferred into the custody of U.S. Homeland Security Investigations (HSI) special agents for further investigation.

“Persistence and dedication in outbound enforcement inspections are critical to our efforts of keeping undeclared currency form being exported without meeting proper reporting requirements. I commend our CBP officers for an outstanding seizure and arrest in this alleged bulk currency smuggling case,” said Michael Freeman, CBP Port Director, Brownsville.

Little detail is given, but as with we could give the man the benefit of the doubt and presume the legitimate source is the proceeds of a life insurance policy of a beloved family member; and the intended use, perhaps he was paying cash for a nice place in the American ex-pat community of Merida. That’s just my guess, and yes, I have handled stranger cases. Maye he was just hiding the money (also called smuggling) to protect it from imagined theieves as he crosses the border into Mexico.

If we assume he proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, he will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

That brings me to the next point: If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who doesn’t regularly handle these cases.

If you have other questions about currency seizures by U.S. Customs and Border Protection, please read these other articles:

If you have considered your options and decide in you want to hire an lawyer, or have other questions, please contact us by clicking here – it’s almost never too late to get a lawyer involved. We will be happy to answer any questions you have and explain the process to you.