Joint operation of the Tax Agency and the National Police

• This is the largest seizure of counterfeit goods of international brands recorded to date in Europe.
• The operation resulted in 17 arrests, the search of 14 bazaars, four warehouses and three homes, and the seizure of 70,000 euros in cash, three vehicles and a volume of counterfeit product, which, according to the estimates of the specialized experts, could have a value of more than 300 million euros.
•  The organisation operated from the islands of Tenerife and Fuerteventura, acquiring the counterfeit material mainly in the Cobo Calleja industrial estate in Madrid.

September 20, 2022.- Customs Surveillance officials from the Tax Agency, in a joint operation with agents from the National Police, have seized more than five tons of counterfeit products of exclusive brands from a distribution network operating in the Canary Islands. This is the largest seizure of counterfeit goods of international brands recorded to date in Europe, carried out as part of an operation that has resulted in 17 arrests, the search of 14 bazaars, four warehouses and three addresses, and the seizure of 70,000 euros in cash and three vehicles. According to the estimates of the specialist experts, the seized items could be worth more than 300 million euros.

The investigations began after learning of the existence of several businesses on the island of Tenerife, allegedly dedicated to the sale of counterfeit goods, which had a common distributor, based in the province of Las Palmas de Gran Canaria, specifically in Fuerteventura, which formed the top of a criminal structure dedicated to the sale and distribution of counterfeit material.

For these facts, during the joint investigation, the EUROPOL National Central Unit was also informed of the actions taken.

The police operation called 'Django' culminated in the dismantling of a criminal organisation specialising in the large-scale distribution and marketing of counterfeit products of exclusive brands that operated on the islands of Tenerife and Fuerteventura. The organisation acquired the counterfeit material mainly in the Cobo Calleja industrial estate in Madrid, and marketed its products especially in tourist areas, taking advantage of the presence of a large population with short periods of residence in the country.

The beginning of the investigation

The operation was launched in September 2021 by the Economic and Tax Crime Unit of the Provincial Judicial Police Brigade of the Provincial Police Station of Santa Cruz de Tenerife. The unit became aware of the existence of a wholesale point of sale for counterfeit leather goods in the south of Tenerife. The surveillance and monitoring work led to the location of the person in charge of this establishment, observing how he sold these products to various individuals, both for street sales and for sale in bazaars.

Subsequently, negotiations were carried out with the parcel companies, determining that the shipments came from Fuerteventura, and that several citizens of Chinese origin who would make up the top leadership of the organisation were involved.

The Customs Surveillance Service then joined the operation, determining that there were numerous products in Customs in the name of the person responsible for the Fuerteventura distributor, and a thorough monitoring of his activity was carried out. From Fuerteventura, the leader of the network sent products to other points on the island and to Tenerife, where his contact distributed and marketed them on the island through his businesses.

The investigation was brought before Court of Instruction No. 4 of Arona, in Santa Cruz de Tenerife, which is conducting preliminary proceedings for such purposes.

Modus operandi

Investigators have determined the existence of a criminal network that acted as a perfectly structured organization, in which three levels can be distinguished: the head of the organization, dedicated to the reception of counterfeit material and its distribution in the archipelago; a second level, with supply and distribution functions; and a third level that acquired counterfeit material from the head of the organization - and in some cases from the second level - to sell it directly in their businesses.

The organization's top brass acquired the counterfeit material mainly in the Cobo Calleja industrial estate, located in Fuenlabrada (Madrid), and secondarily directly from China. The merchandise was sent to this dome by sea and once it arrived in the Canary Islands it was delivered by private parcel companies, mainly to their warehouse in Fuerteventura and sometimes even to their own home.

Once the merchandise was accumulated in the warehouse, it was distributed to the different establishments in the archipelago, as well as to other marketers linked to the leadership who, in addition to selling directly to consumers, also distributed to other businesses.

Large simultaneous device

Given the magnitude of the operation, in mid-June it became necessary to establish a large-scale device, coordinated by the Provincial Brigade of Judicial Police of Santa Cruz de Tenerife and by the Customs Surveillance Operational Unit of the same province.

The operation, which took place on the islands of Fuerteventura and Tenerife, was attended by nearly one hundred National Police officers from different units within the scope of the National Police Headquarters of the Canary Islands, as well as Customs Surveillance from the Tax Agency and the support of the canine guide unit of the Local Police of the capital of Tenerife.

In total, simultaneous raids and searches were carried out in three homes, four warehouses and 14 bazaars or establishments on both islands, where more than 70,000 euros in cash and three vehicles were seized, and more than five tonnes of counterfeit products from renowned brands were seized, including handbags, various leather goods, clothing, sunglasses, watches and various fashion accessories. According to the estimation criteria of the specialized experts, the seized material is currently valued at more than 300 million euros.

As a result of these actions, 17 people were arrested for alleged crimes of belonging to a criminal organization, industrial property infringement and money laundering. Once the organization was dismantled, investigations into money laundering continue.

So far, more than 250,000 objects have been seized, valued at more than 222 million euros, pending analysis of the material contained in two warehouses whose entry and search is pending and has already been authorized by the judge.