NEW YORK (1010 WINS/WCBS 880) – A Queens man was charged on Sunday with trademark counterfeiting and money laundering for selling fake custom car accessories for luxury brands like Mercedes-Benz and BMW in a $1 million operation, according to prosecutors.
Fei Wu, 39, and several of his companies allegedly provided the fake custom items to customers who first purchased generic tire rims from him on eBay. Wu was among the biggest sellers on the site.
“The trafficking of counterfeit goods robs legitimate businesses and their employees and often leaves consumers with substandard products,” Queens District Attorney Melinda Katz said. “The serious charges leveled here are the result of a long-term investigation into an elaborate scheme.”
Wu was arrested after an investigation started in 2019 into eBay accounts selling replicas of patented luxury car tire rims with fake center caps logos of car brands.
Investigators discovered that certain seller accounts were registered under corporations linked to Wu who operated a storefront on Myrtle Avenue in Glendale where he would allegedly receive, store and ship thousands of replica rims sold on eBay for a cheaper price than the authentic rims.
After an order was placed, Wu allegedly sent the rims and separately shipped the stickers, emblems, decals, or plastic inserts of the fake logo.
On July 1, 2020, Wu allegedly informed an investigator that he imported automobile rims from overseas and resold them on eBay. The next day, during a search warrant at the Ktone Gift storefront, several items were seized, including rims with center caps bearing fake logos.
A year later, on May 5, 2021, investigators conducted a controlled purchase of "(1) Mercedes 19 Inch C63 Staggered Rims Wheels Set for E350 E550 C300 C250 AMG" tire rims for $870.99 from one of Wu's eBay accounts. Upon receiving the rims, they contacted the seller's listed number and were informed that the center caps would be sent separately. A few days later, a package containing four counterfeit center caps with the Mercedes-Benz logo arrived, with the label listing Wu's name, Ktone Corp., and Wu's residence as the return address.
In January 2022, investigators made another controlled purchase of items from Wu resulting in a shipment of four tire rims without center caps. Following a similar phone conversation, they received a separate package containing counterfeit Mercedes-Benz logo to affix to the caps.
In March 2023, investigators made a third controlled purchase. Once more, they received a second package containing counterfeit center caps with the Mercedes-Benz logo, with the return label listing Fei Wu, Ktone Corp., and Wu's residence.
Investigators decided to focus on three main eBay sellers accounts all linked to Wu and an accomplice, according to court documents. These accounts had listed over 1,000 replicas. The funds would be deposited into four primary TD Bank accounts under Wu's name, his corporations, or the accomplice, who remains at large, the investigation found. They were then transferred to two secondary TD Bank accounts. Additionally, a secondary TD account sent hundreds of thousands of dollars to a Bank of China account owned by a wheel manufacturer.
Following a search at Wu’s residence, investigators seized nearly 1,700 counterfeit center cap stickers, decals, emblems, and center cap plastic inserts with fake logos of case brands.
In January 2024, investigators made a fourth controlled purchase from one of Wu's eBay accounts. The seller sent the Mercedes-Benz center caps separately.
Investigators searched Wu's home and the Glendale storefront on March 19 and seized over 1,000 tire rims and more than 3,300 counterfeit center cap stickers, decals, plastic inserts, and emblems with logos. Additionally, over $100,000 in cash was seized.
Wu’s TD Bank accounts, investment accounts, and three eBay accounts were frozen, according to court documents.
Wu was arraigned on two counts of trademark counterfeiting, two counts of money laundering, and two counts each of trademark counterfeiting. Also charged were K-Tone Corp., Ktone Gift Inc., KooLoo, LLC and Wu’s Family Realty, Inc.
Wu faces up to 15 years in prison if convicted.
He will return to court on June 4.