Defendants Receive Sentences in Toy Smuggling Case

Two people received sentences following their guilty pleas to allegations of smuggling counterfeit toys, the Justice Department, CPSC and other agencies announced May 31. The conspiracy charges brought 18 months ago (PSL, 1/30/12, p. 1) targeted two Miami, Fla., residents: Hung Lam, age 55, and Isabella Kit Yeung, age 37. The charges involved their three Florida corporations: LM Import-Export, Inc. Lam’s Investment Corp, and LK Toys Corporation.

Lam received the stiffer punishment: 22 months incarceration, a $10,000 fine, and three years of supervised release. He pled to one count of conspiracy to traffic and smuggle children’s products and toys with banned hazardous substances such as lead and small parts. He also pled to one count of trafficking in counterfeit goods.

Yeung pled guilty to one misdemeanor count of submitting a false country of origin label. She received one year probations, a $1,000 fine and a $25 special assessment.

The companies also are under five years’ probation and must pay an $800 special assessment. Further, the defendants must forfeit $862,000 and seized property. According to a Justice Department press release, the defendants:

“Conspired to sell and distribute in commerce children’s products imported from China in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. These products allegedly presented the risk of choking, aspiration, and ingestion, and some contained lead above the allowed statutory limits. The defendants imported these products by means of false statements on custom declaration forms.”