Jury Convicts Two for Conspiring to Traffic Counterfeit Levi’s

NEWS RELEASE SUMMARY - August 2, 2024

SAN DIEGO - After a three-day trial, a federal jury has convicted Marin Morales-Espinoza and Francisco Alvarado-Ramirez of conspiracy to traffic counterfeit Levi's jeans labels, tags, rivets and buttons to make counterfeit Levi's jeans.

According to the evidence presented at trial, Morales paid people to smuggle counterfeit Levi's pieces and parts into the United States from Mexico at the Calexico Port of Entry. Another co-conspirator paid Morales to drive the pieces to his home in Los Angeles. That co-conspirator brought the pieces to Alvarado at his factory in the Garment District to make the counterfeit Levi's jeans.

Tens of thousands of counterfeit Levi's tags, buttons and rivets were seized at the Port of Entry. Over 2,000 completed counterfeit Levi's jeans were seized from Alvarado's factory. These fake Levi's were sold at local swap meets by other co-conspirators. These are photos of the counterfeit parts:

The Senior Director of Global Brand Protection for Levi Strauss & Co. testified that none of the co-conspirators worked for Levi's. He walked the jury through the seized merchandise to explain how they were not genuine Levi's products.

"Counterfeit goods fool consumers and hurt retailers by diluting the value of a product and its trademark," said U.S. Attorney Tara McGrath. "This case demonstrates the Department of Justice's commitment to protecting consumers and retailers from fraud."

The defendants are scheduled to be sentenced November 1, 2024, at 9:30 a.m. before U.S. District Judge Jinsook Ohta.

This case is being prosecuted by Assistant U.S. Attorneys Melanie Pierson and Sarah Akhtar, and Special Assistant U.S. Attorney Lisa Sanniti.

DEFENDANTS Case Number 23cr1356-JO

Marin Morales-Espinoza Age: 63 Calexico, CA

Francisco Alvarado-Ramirez Age: 50 Los Angeles, CA

SUMMARY OF CHARGES

Conspiracy to Traffic in Counterfeit Goods and Labels - Title 18, U.S.C., Section 2320

Trafficking in Counterfeit Labels - Title 18, U.S.C., Section 2320(a)(2)

Trafficking in Counterfeit Goods - Title 18, U.S.C., Section 2320(a)(1)

Maximum penalty: Ten years in prison and $2 million fine

INVESTIGATING AGENCY

Homeland Security Investigations