Birmingham Man Sentenced for Trafficking Counterfeit Nike Shoes, Filing False Tax Return and Mail Fraud
BIRMINGHAM- A federal judge Wednesday sentenced a Birmingham man to 18 months in prison for a scheme involving trafficking of counterfeit Nike shoes, tax fraud and mail fraud, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Reginael D. McDaniel, FBI Special Agent in Charge Patrick Maley and U.S. Postal Inspector/Domicile Coordinator Frank Dyer.
U.S. District Judge Abdul K. Kallon sentenced COREY BISHOP, 35, on one count of trafficking counterfeit goods, one count of filing a false tax return, and one count of mail fraud. Bishop pleaded guilty to the charges Sept. 13, 2010.
“The United States believes the sentence imposed is just and deserved in light of the crimes committed by Mr. Bishop. He profited illegally off the success of an internationally known company, and he failed to report that income to the IRS,” Vance said.
“Individuals thinking about participating in illegal schemes, including failing to report all forms of income, should stop in their tracks and simply look at the consequences of taking the next step,” McDaniel said. “Those consequences can include going to prison, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed, plus steep penalties and interest.”
“The sale of counterfeit goods undermines our economy and hurts legitimate businesses,” Maley said. “U.S. consumers spending their hard-earned dollars deserve the full value of a genuine product. If you think you got a ‘steal’ on that designer purse or watch, look again. It may be you who were ripped off. I want to extend my thanks to the Birmingham and Montevallo Police Departments, the Shelby County Sheriff’s Department and our federal partners for their efforts in bringing this case forward,” Maley said.
According to court documents, in 2007, 2008 and 2009, Bishop ordered multiple shipments of Nike footwear, which he knew to be counterfeit, from a business in China and had them shipped to the United States to sell in two of his retail stores, Fresh2Def Urbanwear, located in Birmingham and Montevallo.
Bishop’s sale of counterfeit goods generated a large taxable income, which he failed to report on his 2007 and 2008 individual income tax returns, according to court documents. Bishop was sentenced for filing a false tax return for the calendar year 2008, on which he reported his business gross receipts to be $22,262. The true amount of his gross receipts was $293,549. The tax loss was determined to be $75,961.
IRS Criminal Investigation, the FBI, U.S. Postal Inspection Service, the Birmingham and Montevallo police departments and the Shelby County Sheriff’s Department investigated the case. Assistant U.S. Attorney Laura D. Hodge prosecuted the case.
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The Office of U.S. Attorney
Joyce White Vance
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