Little Rock -U.S. Attorney Jane W. Duke announced that Stephen P. McDaniel, age 67, of Mabelvale, Arkansas, was indicted today by a federal grand jury in the Eastern District of Arkansas on 40 counts of trafficking in counterfeit goods.

According to the indictment, between June 2007, and July 2008, McDaniel trafficked in counterfeit goods that included counterfeit clothing, handbags, shoes, and hats. These goods were sold by McDaniel from a business location in Mabelvale. There were approximately 35 different companies whose protected marks were used on the items. Genuine products bearing those marks would have a Manufactured Suggested Retail Price (MSRP) totaling over $1,000,000. The indictment also contains a provision seeking forfeiture of more than 5,000 counterfeit goods. Each of the 40 counts carries a statutory penalty of not more than 20 years, a fine of not more than $5,000,000 or both.

“The marketing of counterfeit goods is a serious offense which we will vigorously prosecute. What consumers need to realize is that there are far reaching ramlifications from these “good bargins.” Some counterfeit goods create public health and safety issues and can even be potentially life-threatening. Even in cases like this where you are dealing with primarily garments and hand bags, there are other concerns. Many of these knock-offs are produced in factories with deplorable working conditions that fail to adhere to the most basic labor laws,” stated Duke.

This investigation was conducted by the Federal Bureau of Investigation; Immigration and Customs Enforcement; and the Investigation Services Company. Assistant United States Attorney Jana Harris will prosecute this case for the United States.

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An indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

For more information regarding conterfeit items involved in this case, see attached indictment.

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U.S. Attorney’s Office 11/05/2008