A large-scale underground operation producing clothing and other goods bearing the logos of well-known global brands has been uncovered in Mykolaiv. According to the Economic Security Bureau, the goods were manufactured in specially equipped workshops and then sold in large batches throughout Ukraine, notably at the «7th Kilometre» market in the Odesa region. In total, law enforcement officers seized over 420,000 items of counterfeit goods, whilst the value of the goods and equipment exceeded 50 million hryvnias.
- Illegal workshops were operating in Mykolaiv.
- Over 420,000 counterfeit items were seized.
- The goods were sold throughout Ukraine.
- The value of the seized items exceeds 50 million hryvnias.
A full production cycle has been set up in Mykolaiv
According to the BEB, criminal proceedings were initiated following complaints from trademark owners who alleged the unlawful use of their trademarks.
The investigation established that the organiser had rented warehouse premises in Mykolaiv and converted them into production workshops. Inside, they installed almost 130 items of specialised equipment, which was used to produce clothing featuring the logos of popular brands.
In fact, it was not a small workshop, but a well-established production cycle – from manufacturing to storage and the subsequent dispatch of finished goods.
The counterfeit goods were sold throughout Ukraine
Finished products were stored in warehouses and then dispatched in large consignments to retail outlets in various regions.
One of the locations where this took place was the well-known market «The 7th Kilometre» in the Odesa region, where counterfeit goods were sold both wholesale and at retail. Due to the unauthorised use of other companies’ trade marks, such goods were offered at significantly lower prices than the original products.
During the initial searches, detectives discovered more than 60,000 items of ready-made counterfeit clothing.
Nike, Adidas, Gucci and dozens of other brands
Later, during further searches in Mykolaiv and the Odesa region, the police seized a further over 360,000 units.
The goods included sports shoes, underwear, headwear, socks and other textile items bearing markings Nike, Adidas, Puma, Reebok, New Balance, Salomon, Gucci, Versace, Lacoste, Armani, Hugo Boss, Levi’s, Columbia, Tommy Hilfiger, Off-White, Calvin Klein and other brands.
In addition, the detectives seized a further 28 items of equipment, which, according to the investigation, was used to manufacture counterfeit goods.
The value of the seized goods exceeded 50 million hryvnias
The total value of the seized goods and production equipment is estimated at over 50 million UAH.
The expert assessment also found that, as a result of the unlawful use of the trade marks, their proprietors may have suffered over 11 million hryvnias in property damage.
The production organiser has been served with a notice of suspicion under Part 3 of Article 229 of the Criminal Code of Ukraine — unlawful use of a trade mark for goods and services, resulting in material damage on an exceptionally large scale.
The investigation is ongoing. Law enforcement agencies are identifying other individuals who may have been involved in the manufacture, supply and sale of counterfeit goods. The BEB emphasises that only a court can determine whether these individuals are ultimately guilty.
