ICAC smashes $400 million stamper syndicate in corruption investigation
2000-12-7
The ICAC has smashed a criminal syndicate allegedly involved in the production of stampers for export to countries in South America for manufacturing counterfeit VCDs and CDs as well as computer softwares.
ICAC arrested the syndicate head and one of his couriers in the Airport last Saturday (December 2) when the courier intended to take on board 25 stampers to a flight heading for Brazil.
The arrest triggered the operation “Misty” on Sunday (December 3) when ICAC arrested the partner of the syndicate head as well as three other syndicate members.
During the operation, ICAC officers have searched six premises.
Over 500 VCD & CD stampers, a number of Digital Analogue Tapes (which are pre-mastering tapes used for making stampers) and digital camera tapes containing current movies on show locally, plus 25 stampers containing Microsoft software including MS Office 2000, Windows NT and Win 98 were seized.
Also seized from the premises were some relating machinery and equipment, and a quantity of music CDs, VCDs and CD- ROMs.
The IFPI has confirmed that majority of the CD and VCD stampers were either counterfeit or copyright infringing.
Microsoft Hong Kong Office confirmed that the 25 stampers containing Microsoft softwares were unauthorized, and that each of them was valued at US$2 million. Such seizure was believed to be the largest of its kind so far.
Also a number of Play Station games stampers and miscellaneous music CD stampers were seized in the operation.
In June this year, the ICAC received information from IFPI that two businessmen have been operating factories in Hong Kong and overseas for manufacturing pirated music CDs. The syndicate was suspected to have received protection from law enforcement offic ers in various jurisdictions including Hong Kong, hence corruption was allegedly suspected.
The two businessmen, believed to be the syndicate leaders, were amongst the six persons arrested in the operation.
It was alleged that the syndicate controlled a number of factories in South American countries, which produced counterfeit and copyright infringing phonographic products.
It was revealed that the syndicate was employing couriers to deliver stampers from Hong Kong to those factories overseas.
The Customs & Excise Department, International Federation of Phonographic Industries, the Motion Picture Association and Microsoft Hong Kong Office have rendered full assistance to the ICAC in the operation.
The arrestees, four men and two women, were released on ICAC bail, while the corruption investigation continues.
ICAC arrested the syndicate head and one of his couriers in the Airport last Saturday (December 2) when the courier intended to take on board 25 stampers to a flight heading for Brazil.
The arrest triggered the operation “Misty” on Sunday (December 3) when ICAC arrested the partner of the syndicate head as well as three other syndicate members.
During the operation, ICAC officers have searched six premises.
Over 500 VCD & CD stampers, a number of Digital Analogue Tapes (which are pre-mastering tapes used for making stampers) and digital camera tapes containing current movies on show locally, plus 25 stampers containing Microsoft software including MS Office 2000, Windows NT and Win 98 were seized.
Also seized from the premises were some relating machinery and equipment, and a quantity of music CDs, VCDs and CD- ROMs.
The IFPI has confirmed that majority of the CD and VCD stampers were either counterfeit or copyright infringing.
Microsoft Hong Kong Office confirmed that the 25 stampers containing Microsoft softwares were unauthorized, and that each of them was valued at US$2 million. Such seizure was believed to be the largest of its kind so far.
Also a number of Play Station games stampers and miscellaneous music CD stampers were seized in the operation.
In June this year, the ICAC received information from IFPI that two businessmen have been operating factories in Hong Kong and overseas for manufacturing pirated music CDs. The syndicate was suspected to have received protection from law enforcement offic ers in various jurisdictions including Hong Kong, hence corruption was allegedly suspected.
The two businessmen, believed to be the syndicate leaders, were amongst the six persons arrested in the operation.
It was alleged that the syndicate controlled a number of factories in South American countries, which produced counterfeit and copyright infringing phonographic products.
It was revealed that the syndicate was employing couriers to deliver stampers from Hong Kong to those factories overseas.
The Customs & Excise Department, International Federation of Phonographic Industries, the Motion Picture Association and Microsoft Hong Kong Office have rendered full assistance to the ICAC in the operation.
The arrestees, four men and two women, were released on ICAC bail, while the corruption investigation continues.