A New York couple pled guilty last week to importing children’s toys that violated the Consumer Product Safety Act (CPSA) and contained copyright infringing images.
Chenglan Hu, 52, and Hua Fei Zhang, 53, of Bayside, N.Y., pled guilty to violating the CPSA by importing toys that contained unsafe lead and phthalates levels, small parts that presented choking, aspiration or ingestion risks, easily accessible battery compartments and other potential hazards. Additionally, they confessed to importing toys with counterfeit trademarks of popular characters, such as Winnie the Pooh, Dora the Explorer and Teenage Mutant Ninja Turtles, as well as those from movies, including “Cars,” “Toy Story” and “High School Musical.”
“In a criminal twist on a toy story, the defendants made millions importing dangerous, knock-off toys that put children in harm’s way,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “The defendants used a continuously shifting series of corporate entities in an effort to stay one step ahead of law enforcement. But their game has now come to an end. The Department of Justice is committed to stopping those who would smuggle hazardous, counterfeit goods into the United States.”
“For eight years, the defendants lined their pockets while putting at risk the health of our children by smuggling dangerous and copyright-infringing toys into the United States,” added U. S. Attorney Loretta E. Lynch of the Eastern District of New York. “[Wednesday’s] guilty pleas signify the end of this dangerous pipeline from China. We will continue to be vigilant and prosecute those who would smuggle dangerous and unlawful items into our country and neighborhoods.”
Between July 2005 and January 2013, Hu, Zhang and other individuals used their companies—Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc.—to import toys from China and sell the products from a Ridgewood, N.Y. storefront and warehouse, as well as additional Brooklyn and Queens, N.Y. locations.
However, Customs and Border Protection seized imported toys from their shipping containers as they entered the U.S. on 33 separate occasions, including 17 times due to CPSA violations and 16 times for copyright infringement. All defendants were arrested Feb. 6, 2013.
“The United States has some of the strongest toy standards and lowest lead limits in the world, specifically to keep children safe,” said CPSC Chairman Elliott Kaye. “We have no more important mission than protecting children. For that reason, the CPSC will continue to work with our federal partners to enforce toy safety requirements at the ports and in the marketplace.”
Hu and Zheng’s guilty pleas complete the case as Guan Jun Zhang and Jun Wu Zhang previously pled guilty to CPSA and trademark counterfeiting charges.
In pleading guilty to trafficking in hazardous consumer goods in violation of CPSA, Hu and Zhang also agreed to forfeit $700,000 and more than 120,000 unsafe children’s toys. The government previously seized three luxury vehicles and six bank accounts, and filed lis pendens against two of Hua Fei Zhang’s real properties in Queens, N.Y.
This was a family business, according to HLNTV. Hu is the wife of Hua Fei Zhang.
“Mrs. Hu is deeply remorseful for her actions in this case,” her lawyer, Len Kamdang, said in a statement to HLNTV. “This resolution reflects the careful consideration by both parties of all of the important considerations of justice: the seriousness of the offense and the harm her actions caused but also her health, age, and lack of any criminal history in her past.
“We’re hopeful that this resolution will allow her to avoid the more draconian aspects of criminal punishment, while still facing a meaningful sanction that allows her and her family to work to make amends for their mistakes.”
Hua Fei Zhang’s lawyer declined to comment, according to HLNTV.
The couple will be sentenced at a later date.
