By Alexander Dworkowitz
Six people have been charged with distributing millions of dollars worth of counterfeit software out of centers in Flushing and Whitestone to businesses throughout the country, federal prosecutors said.
Nearly $10 million in counterfeit software was seized at the two Queens sites, law enforcement officials said.
The six defendants were charged with criminal copyright and trademark infringement, said Amy Walsh, a prosecutor with the U.S. attorney’s office in the Eastern District.
Kai Wu, 26, of Flushing; Jianhui Ye, 39, of Flushing; and Xi Kang Yu, 55, of East Brunswick, N.J. were arraigned in front of Judge Viktor Pohorelsky in Brooklyn federal court Feb. 26, Walsh said.
A former Little Neck resident, Ke Pei Ma, 45, of Rego Park and Xia Yu, 39, of Whitestone, were still at large, Walsh said. Hsien-Chang Ko, 26, of California, was arraigned there, she said.
Wu was released on $400,000 bail and Xi Kang Yu was released on $200,000 bail, and both were required to remain at home wearing electronic detection bracelets, Walsh said. Ye and Ko were still being detained, Walsh said.
The six each face 15 years in prison and heavy fines if convicted, prosecutors said.
The charges came after authorities conducted raids at the group’s distribution centers, prosecutors said.
City and federal law enforcement agencies executed search warrants at 136-46 59th Ave. in Flushing and 15-38a 150th Place in Whitestone, prosecutors said.
Between the two locations, authorities seized $3.2 million worth of counterfeit Symantec software and $5.9 million worth of counterfeit Microsoft software as well as shrink-wrapping machines, heat guns and boxes of compact disc cases and CD sleeves, authorities said.
The seized software included counterfeit versions of Norton Antivirus, a popular computer virus protection program, and Microsoft Office, which includes word processing, accounting and visual presentation programs, prosecutors said.
The group ran a successful business, authorities said. Using United Parcel Service facilities in Queens and the Bronx, they shipped their software to computer retailers and wholesalers throughout the country, prosecutors said.
Over two years, the defendants were paid more than $15 million for their software, prosecutors said. Between Nov. 4, 2002 and Jan. 24 alone, the defendants distributed 37,971 counterfeit CDs and were paid nearly $1.9 million for the goods, prosecutors said.
Companies buying the counterfeit software issued checks to PC Tech and Blue Media, which were controlled by Wu, Xi Kang Yu and Ko, prosecutors said. The defendants deposited the checks into accounts at Cathay Bank and TD Waterhouse Securities on Main Street in downtown Flushing, prosecutors said.
Authorities recently seized approximately $900,000 from the defendants’ accounts at Cathay Bank, prosecutors said.
“The manufacture, distribution and sale of counterfeit trademark products is not a victimless crime,” said Queens District Attorney Richard Brown, whose office assisted in the case. “Legitimate businesses such as Symantec Norton and ultimately the consumer are the victims.”
This was not the first time the defendants were under suspicion, authorities said.
In June 2001, FBI agents executed a search warrant at 133-38 32nd Ave., a warehouse in an industrial area of Flushing, but the defendants had already fled, leaving behind only a few CDs containing counterfeit software, prosecutors said.
The defendants often drove around in Mercedes Benzes and BMWs, according to neighbors living near the group’s alleged Whitestone distribution center.
Daniel Gotlin, Wu’s attorney, would not comment on the case. Attorneys representing the remaining defendants could not be reached for comment.
Reach reporter Alexander Dworkowitz by e-mail at Timesledger@aol.com or call 718-229-0300, Ext. 141.
