The charges arose after Cao and Zhang were discovered with more than 14,000 counterfeit items bearing the names of Coach, Dolce & Gabbana, Louis Vuitton, Prada and Versace -- all manufacturers of luxury fashion goods.
Cao and Zhang were charged with separate, but related, criminal informations on March 15. When appearing to the judge, they admitted they knowingly used counterfeit marks on and in connection with such goods, identical to and substantially indistinguishable from genuine marks, the use of which was likely to cause confusion, mistake and to deceive.
Their sentencing has been scheduled for August, at which time both men face up to 10 years in federal prison as well as a $2 million fine. They were permitted to remain on bond pending their sentencing hearing.
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