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SoHo Residents Blame Soft Punishments for Thriving Illegal Handbag Business

By DNAinfo Staff on March 11, 2010 4:05pm  | Updated on March 11, 2010 3:55pm

By Nicole Breskin

DNAinfo Reporter/Producer

SOHO — A police crackdown on sales of fake handbags and other counterfeit goods has made only a minor impact on the streets of SoHo and NoLIta, residents say.

Data from the Manhattan District Attorney's office show that last year there were 471 trademark counterfeit-related arrests within the First Precinct, which spans from SoHo to lower Manhattan.

But less than a quarter of those cases resulted in paid fines, and only 12 resulted in jail time.

The data was revealed at a recent Community Board 2 meeting.

“The penalties seem absurdly low,” board member Sigrid Burton said. “They [illegal vendors] keep coming back because they know there are no consequences.”

Inside a truck reportedly filled with illegal purses after a police raid.
Inside a truck reportedly filled with illegal purses after a police raid.
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Photo: Courtesy of David Bober

Following raids on 31 stalls on Canal Street in December 2009, residents noticed that sales of counterfeit handbags and other fake goods seeped into SoHo and NoLIta, where vendors lured customers into vans and trucks to view merchandise.

Neighbors have recently seen little relief from illegal vendors and are concerned now that the problem could be legislative. Some trademark counterfeit crimes are treated as felonies, but the majority are misdemeanors with fines starting at $25, according to the district attorney’s statistics.

Cases may not be prosecuted as felonies because they require additional proof at the time of the arrest to show that the seized merchandise is indeed fake, which can be difficult to assess, explained Jenu Brar, a community affairs representative for the district attorney’s office.

“I see the same people out there all the time,” noted David Bober, who is part of a local activist organization called SoHo Neighbors that documents illegal activity in photos and videos.

“They’re all around, the weekends are miserable. They’re obviously carrying contraband.”

Jason Post, a spokesman for Mayor Michael Bloomberg's office, said the NYPD has "increased enforcement" in the area.

Local politicians, like state Sen. Daniel Squadron, who represents the area, say the issue requires policy reform. Squadron also wants to protect a vendors' right to a fair trial.

"There is no question that the current system is not working for anyone — the community, pedestrians, small businesses and vendors,” Squadron said in a statement to DNAinfo. “I’m working with advocates, community groups and others for comprehensive vending reform that is fair, protects the rights of immigrants and improves the system for everybody.”