Three People Charged In Conspiracy To Sell Counterfeit Hair Care Products

PHILADELPHIA – Three people were charged by information, filed or unsealed today, in a conspiracy to import and sell counterfeit goods, announced United States Attorney Zane David Memeger. Stephen Voudouris, Sr., 59, of Newtown Square, PA, Yung Chung, 31, of West Chester, PA, and Jaimmy Chun, 30, of Philadelphia, PA, are charged with conspiracy, trafficking in counterfeit goods and wire fraud. Voudouris, Sr. is also charged with smuggling counterfeit goods into the United States.

Stephen Voudouris, Sr. and Yung Chung were partners and owners of Misikko.com, headquartered in Newtown Square, Pennsylvania, an online retailer of luxury hair care appliances, including flat irons and blow dryers.  Misikko.com was not an authorized dealer of brands such as CHI, T3 and Babyliss.  According to the charging documents, in an effort to maximize profits, Voudouris, Sr., Chung and an employee, Chun, sought out Chinese manufacturing companies from which they could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss.  It is further alleged that the defendants then resold the counterfeit goods as authentic, for top dollar, to the American public.

Allegedly at the direction of Voudouris, Sr., in a scheme to drive consumers to their website and maximize profits, Misikko.com also purported to sell "Breast Cancer Awareness" products.  The Misikko.com website was designed to make consumers believe that breast cancer charities would benefit from the purchase of certain pink products. For some products, Misikko.com represented that $25 from every purchase would benefit a prominent breast cancer foundation.  It is alleged, however, that no donations were ever made to a breast cancer charity.

If convicted of all charges, Stephen Voudouris, Sr. faces a potential advisory guideline sentencing range of 33 to 41 months in prison, a three-year period of supervised release, a fine of up to $1 million, and a $400 special assessment; Yung Chung and Jaimmy Chun each face a potential advisory sentencing guideline range of 24 to 30 months in prison, a three-year period of supervised release, a fine of up to $750,000, and a $300 special assessment.  Each defendant is also responsible jointly and severally for full restitution of approximately $150,346.

The case was investigated by Homeland Security Investigations with the assistance of the Federal Reserve Board Office of the Inspector General.  It is being prosecuted by Assistant United States Attorneys Alicia M. Freind and Mary E. Crawley.

An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.