.
,
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.65 Page 1 of 8
-'
1
:
\l
~', c"
,"","',
2UI5 SEP 24 PI, 3: 05
2
3
4
5
6
7
8
UNITED STATES DISTRICT COURT
9
SOUTHERN DISTRICT OF CALIFORNIA
June 2014 Grand Jury
10
11
UNITED STATES OF AMERICA,
12
13
Case No. 14CR3660-AJB
Plaintiff,
I N D I C T MEN T
-CSuperseding)-
v.
Title 18, U.S.C., Sec. 371 Conspiracy; Title 18, U.S.C.,
Sec. 2320(a) - Trafficking in
15
Counterfeit Goods; Title 18,
U.S.C., Sec. 1519 - Obstruction
16
Defendants.
of Justice; Title 18, U.S.C.,
Sec. 2 - Aiding and Abetting;
17
Title 28, U.S.C.,
~__________________________________~Sec.
2323(b) - Forfeiture
18
14
19
ROBERT A. ERIE (1),
LYLE J. DE STIGTER (2),
E-WORLD RECYCLERS, LLC (3),
The grand jury charges:
20
INTRODUCTORY ALLEGATIONS
21
At all times relevant to this Indictment:
22
1.
Defendant
E-WORLD
which was founded in 2006 by defendant ROBERT A. ERIE and others.
26
27
28
ROBERT A.
ERIE
located
was
the
in Vista,
was
24
Defendant
company
("E-World") ,
electronic
2.
service
LLC
23
25
recycling
RECYCLERS,
Chief
an
California,
Executive
Officer
("CEO") and co-founder of E-WORLD.
3.
Defendant LYLE J. DE STIGTER was the Chief Operating Officer
("COO") and co-founder of E-WORLD.
RSK:lml:San Diego: 9/24/15
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.66 Page 2 of 8
4.
1
The United States Customs and Border Protection
2
component
3
("DHS"),
4
America's borders.
5
intellectual
6
bring
7
copyrights, and trademarks.
8
and
9
contraband
10
of
the
is
the
United
States
Department
primary
federal
agency
As part of
property
goods
into
pirated
goods
to
the
at
be
rights
of
holders
country
from
that
Homeland
responsible
their mission,
for
a
Security
securing
DHS and CBP protects
smugglers
infringe
who
attempt
u.s.
on
to
patents,
In particular, CBP intercepts counterfeit
our
Nation's
destroyed
and
borders,
not
and
introduced
arranges
into
the
for
such
stream
of
paragraphs
1
commerce.
11
Count 1
12
(Conspiracy - 18 U.S.C. Section 371)
13
5.
14
through
15
incorporated as if set forth fully herein.
16
("CBP"),
The
4
6.
Introductory
of
this
Beginning
Allegations
Superseding
no
later
contained
Indictment
in
are
re-alleged
2009,
and
and
than
September
continuing
2011,
within the Southern District of
17
through at least September 8,
18
California,
19
DE STIGTER
20
conspired and agreed with each other,
G.R.E,
and others to commit an
21
offense against the United States - that is,
to intentionally traffic
22
in counterfeit goods and knowingly use a
23
connection with such goods,
24
Code, Section 2320(a).
27
and
elsewhere,
E-WORLD
defendants
RECYCLERS,
ROBERT
LLC
A.
ERIE,
knowingly
and
LYLE
J.
willfully
counterfeit mark on and in
in violation of Title 18,
United States
MANNER AND MEANS
25
26
and
7.
The conspirators utilized the following manners and means,
among others, to carry out the conspiracy:
28
2
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.67 Page 3 of 8
1
2
a.
Chern,
Defendant ERIE caused E-WORLD
Inc.,
to contract with Cycle
to receive counterfeit goods seized by CBP and DHS that
3 were intended to be destroyed.
4
b.
Defendant ERIE caused the seized counterfeit goods that
5 were to be destroyed,
including watches,
to be transported from E-
6 World's facility to private off-site storage.
7
c.
Defendants ERIE and DE STIGTER caused E-WORLD employees
8
to falsely certify on official United States Department of Treasury
9
forms
10
that
the
counterfeit
goods,
including
watches,
had
transferred
and
been destroyed.
11
d.
Defendant
ERIE
mailed,
transported,
12
otherwise distributed to third-parties and co-conspirators the seized
13
counterfeit watches that were to have been destroyed.
e.
14
Defendant
ERIE
altered records
and correspondence
15
give the false impression that the conspirators'
16
been approved by companies working with DHS and CBP.
to
illegal actions had
OVERT ACTS
17
8.
18
In
furtherance
19
accomplish
the
20
others,
21
and elsewhere:
were
E-WORLD
said
thereof,
conspiracy
the
committed within the
to
overt
Southern District
acts,
of
25
services related to counterfeit goods seized by CBp'and DHS.
26
b.
27
December 18,
Chern,
perform
Between on or about November 4,
2009,
among
defendant ERIE negotiated
contract
to
and
California,
24
Corporation,
Cycle
effect
for
VSE
with
to
23
with
sub-contract
and
following
In or about September 2009 ,
a.
22
objects
of
Inc.,
which
electronic
2009,
had
a
recycling
and on or about
defendant ERIE caused VSE Corporation to ship and
28
3
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.68 Page 4 of 8
1
E-World to receive approximately 38 shipments containing approximately
2
1,888 pallets of counterfeit goods seized by CBP and DHS.
c.
3
In
or
instructed
about
November
6
even though defendants ERIE and DE STIGTER knew that the goods had not
7
all been destroyed.
storage
unit
10
Storage
11
California.
C1007
located
12
e.
("ERIE's
at
1750
personal
La
2009,
sign
defendant ERIE rented
storage
Costa
to
DE
documents certifying the destruction of DHS-seized counterfeit goods
On or about December 24,
D.R.,
and
5
9
including
ERIE
STIGTER
d.
employees,
defendants
4
8
E-WORLD
2009,
Meadows
unit"),
at
All
Avenue,
San
City
Marcos,
After renting his personal storage unit, defendant ERIE
13
transported
14
counterfeit goods, including watches bearing counterfeit marks related
15
to
16
counterfeit
17
storage unit through September 8, 2011.
Coach,
to
Chane 1 ,
marks
f.
18
ERIE's
Bebe,
transported
20
Carlsbad,
California,
21
including
watches
22
Cartier,
23
Chane 1 ,
24
Coach.
Romain
g.
four
to
to
his
bearing
Jerome,
Brietling,
and
stored,
shipments
at
6,
2010,
the
defendant
Argonauta
related
Gucci,
bearing
maintain
counterfeit
to
Piguet,
Way,
goods,
Paneri,
Rolex,
Ed Hardy,
and
defendant ERIE sent at
26
least
27
DHS-seized counterfeit watches to H.S. and D.D. in Ohio.
28
//
4
DHS-seized
2011,
Audemars
Corum,
consisting
to
7141
marks
Philippe,
On or about January 25,
separate
continued
DHS-seized
Omega Graham,
stored
and headphones
house
counterfeit
Patek
and
2009 and June
neighbor's
and
unit
Gabbana,
Bose,
Between November 4,
ERIE
25
storage
and Dolce
related
19
Bebe,
personal
of
several
boxes
of
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.69 Page 5 of 8
h.
1
On
or
about
January
25,
2010,
defendant
ERIE
sent
2 DHS-seized counterfeit watches to unindicted co-conspirator G.R.E.
i.
3
On or about February 10,
2010,
defendant ERIE altered
4
e-mail correspondence between himself and a Cycle Chern representative
5
to falsely suggest that Cycle Chern had granted E-WORLD permission to
6
redistribute and/or remarket the counterfeit watches.
j .
7
8
On or about September 1, 2011, defendant ERIE paid All
City Storage $389 for the monthly rent of storage unit C1007.
9 All in violation of Title 18, United States Code, Section 371.
10
Counts 2-9
11
(Trafficking in Counterfeit Goods - 18 U.S.C. Section 2320(a»
12
9.
13
The Introductory Allegations in paragraphs 1 through 4 are
incorporated herein as if set forth in full.
14
10.
On or about September 8, 2011, within the Southern District
15
of
California and elsewhere,
defendants
ROBERT A.
ERIE and E-WORLD
16
RECYCLERS, LLC did intentionally traffic and attempt to traffic in the
17
goods indicated below while knowingly using on and in connection with
18
such goods counterfeit marks that were substantially indistinguishable
19
from genuine trademarks from the makers below,
20
likely to cause confusion, to cause mistake, and to deceive:
the use of which was
21
22
23
2
Chanel Ladies' Metal Watch with
White Square Face
Chanel
1,501,898
3
Chane I Ladies' Watch With White
Band,
White
Round
Face
and
Diamond Bezel
Chane I
3,133,139 &
1,501,898
4
Chanel Men's J12 Watch With Back
Band and Black Round Face
Chane I
3,133,139 &
1,501,898
24
25
26
27
28
5
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.70 Page 6 of 8
1
2
Chane 1
1,501,898
5
Chane 1 Ladies' J12 With White
Band, White Face and White Bezel
6
Bose In-Ear Headphones
7
Gucci Ladies' Watch With Black
Band and Black Oval Face
Gucci
959,338
8
Coach Ladies' Yellow Metal Watch
With Square Face
Coach
2,832,589
9
Ed Hardy Ladies'
Watch
Green Band and Round Face
Ed Hardy
3,654,597
3
4
5
6
7
8
9
10
Bose
3,863,254 & 829,402
& 991,271
with
All in violation of Title 18, United States Code, Section 2320(a).
11
Count 10
12
,
(Alteration or falsification of records In Federal Investigation 18 U.S.C. Section 1519)
13
14
15
11.
The Introductory Allegations in paragraphs 1 through 4 are
incorporated herein as if set forth in full.
16
12.
On or about August 18, 2011, within the Southern District of
17
California and elsewhere, defendant ROBERT A. ERIE, with the intent to
18
impede, obstruct, and influence, and in relation to and contemplation
19
of, the investigation and proper administration of a matter within the
20
jurisdiction of a department and agency of the United States -
21
is,
22
into trafficking in counterfeit goods - knowingly altered, concealed,
23
covered up, falsified and made a false entry in a.record and document,
24
namely,
25
destroy and not redistribute counterfeit goods.
26
All in violation of Title 18, United States Code, Section 1519, and
27
Title 18, U.S.C., Sec. 2 - Aiding and Abetting.
that
a criminal investigation by the Department of Homeland Security
e-mails
between ERIE and D. F.
28
6
discussing the
obligation to
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.71 Page 7 of 8
FORFEITURE ALLEGATION
1
2
13.
Upon conviction of the felony offenses alleged in Counts 1
3
through 9 of this Indictment and pursuant to Title 18, United States
4
Code,
5
Procedure, defendants ROBERT A. ERIE,
Section
6 RECYCLERS,
2323(b),
and
Rule
32.2,
Federal
LYLE J.
Rules
of
Criminal
DE STIGTER and E-WORLD
LLC shall forfeit to the United States:
(a)
any article,
7
the making or trafficking of which, is prohibited under Section 2320;
8
(b) any property used,
9
to commit or facilitate the commission of the offenses set forth in
10
Counts 1 through 9; and (c) any property constituting or derived from
11 any
12
proceeds
commission
13 property
14
obtained
of
to
or intended to be used,
directly
the
offenses
be
forfeited
approximately 2,275 watches,
set
or
in any manner or part
indirectly
forth
in
includes,
524 pens,
as
Counts
but
is
a
1
result
of
the
through
9.
The
limited
to,
not
and 12 in-ear headphones,
all
15 bearing counterfeit marks.
16
14.
If
any of
the
above-described
forfeited properties,
as
a
17
result of any act or omission of defendants ROBERT A. ERIE, LYLE J. DE
18
STIGTER or E-WORLD RECYCLERS, LLC cannot be located upon the exercise
19 of due diligence; has been transferred or sold to, or deposited with,
20
a third person; has been placed beyond the jurisdiction of the Court;
21
has been substantially diminished in value;
22
with other property which cannot be subdivided without difficulty,
23
is
24
States
25
United States Code, Section 2320(c) and 2323(b) (2), to seek forfeiture
26
II
27
II
28
II
the
intent
Code,
of
the
United States,
Section 853(p),
made
7
or has been commingled
pursuant
applicable
to
Title
herein
by
21,
it
United
Title
18,
·.
Case 3:14-cr-03660-AJB Document 26 Filed 09/24/15 PageID.72 Page 8 of 8
1 of
any
other
property
of
the
defendants
up
to
the
value
of
2 property described above subject to forfeiture.
3 All pursuant to Title 18, United States Code, Section 2323(b).
4
DATED:
September 24, 2015.
A TRUE BILL:
5
~-~
6
Foreperson
7
8 LAURA E. DUFFY
United States Attorney
,: By, REB~l~
11
Assistant U.S. Attorney
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
8
the