PEORIA, Ill. — Two Central Illinois women have pleaded guilty of conspiracy to traffic in counterfeit goods. The two woman conducted business as “The Purse Lady” and sold counterfeit items. They each face up to five years in prison and a $250,000 fine. This investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Bloomington (Ill.) Police Department.
Jannette Grant, 51, of Bloomington, Ill., and Kimberly Nein, 50, of Argenta, Ill., waived indictment and pleaded guilty to conspiracy to traffic in counterfeit goods. Both entered their guilty pleas before U.S. District Judge Joe Billy McDade in Peoria. Sentencing has been scheduled for Aug. 13, 2012.
According to court documents, Grant and Nein admitted to operating a business known as The Purse Lady, which offered items for sale that falsely bore trademarks of Coach, Kate Spade, Dolce & Gabbana, Chanel, Dooney & Bourke, Prada, Tiffany & Co. and others. Goods were sold throughout central Illinois, including at various businesses; at home parties, also known as “purse parties;” through the mail; and at a warehouse in Argenta owned by Nein.
Grant and Nein admitted that they traveled to Chicago and New York regularly to purchase inventory. According to court documents, Grant and Nein advertised their items for sale as “replica/knockoff” and stated that all references to brands were for “entertainment and novelty purposes only” and “these companies are not affiliated with us in any way.”
During search warrants executed by HSI special agents May 12, 2011, at Grant’s home and at Nein’s warehouse in Argenta, special agents recovered more than 15,000 counterfeit items with an estimated manufacturer’s suggested retail price of nearly $1.6 million. The items included 2,000 purses, 900 wallets, 400 sunglasses, 10,900 emblems and medallions, and other items. Further, HSI special agents recovered various items that Grant surrendered, including a 2008 Dodge Caravan, a 2003 BMW and $18,052 in currency at her home. Special agents have also recovered $4,487 from the business’ bank account and $80,000 held in a safe deposit box. Grant has also agreed to forfeit $47,522, the amount Grant had paid on two homes in Bloomington, in lieu of forfeiture of real estate.
As the largest investigative arm of the Department of Homeland Security, HSI plays a leading role in targeting criminal organizations responsible for producing, smuggling and distributing counterfeit products. HSI focuses not only on keeping counterfeit products off our streets, but also on dismantling the criminal organizations behind such illicit activity.
