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D.A. Bragg Announces Indictment in Fraudulent Clothing Import Scheme

June 7, 2023

Two Brothers and a Suspended Attorney Charged with Conspiracy and Identity Theft for Scheming to Steal More Than 250,000 Pairs of Pants Valued at More Than $2 Million
 

Manhattan District Attorney Alvin L. Bragg, Jr., today announced the indictment of TONY CHIU, 64, REX CHIU, 65, and JOSEPH SANCHEZ, 55, for conspiring to fraudulently obtain over 250,000 pairs of pants valued at more than $2 million. The defendants are charged with operating a scheme to steal and assume the identity of Mod Societe, LLC, a Manhattan-based home furnishings importer for which SANCHEZ, a now-suspended attorney, previously provided business legal services. The defendants used the stolen company information to induce overseas manufacturers to produce and ship the clothing on Mod Societe’s credit.[1]  

The defendants are charged in a 79-count indictment with Conspiracy in the Fourth Degree and numerous counts of Identity Theft in the First Degree, Forgery in the Second Degree, and Criminal Possession of a Forged Instrument in the Second Degree. Defendants TONY CHIU and REX CHIU are each also charged with one count of Falsifying Business Records in the First Degree.
 
“This alleged deception affected a Manhattan-based company that entrusted its attorney with its business dealings. The defendants — including this formerly licensed attorney who had an ethical and professional responsibility to act with honesty — allegedly lied again and again to enrich themselves,” said District Attorney Bragg. “We protect New Yorkers and companies based in Manhattan, a global financial capital, from fraud. If any company or individual believes they have been the victim of theft, I encourage them to report financial crimes by calling 212-335-8900.”
 
According to court documents, the defendants allegedly stole and assumed the identity of Mod Societe by:

  • Fraudulently obtaining Mod Societe’s corporate papers, tax records, and Dun & Bradstreet number — an ID number that helps confirm whether a business is active and is often required to obtain credit — to prove the company’s existence and credit history
  • Opening an unauthorized bank account for Mod Societe
  • Forging purchase orders for Mod Societe and sending them to multiple clothing manufacturers in China using email addresses the defendants created for fictitious officers of Mod Societe

On February 28, 2017, SANCHEZ shared Mod Societe’s corporate documents with brothers TONY and REX CHIU. A few days later, SANCHEZ directed a staffer to purchase the domain name “mod-societe.com,” which was later used to create email accounts for fictitious company officers. The fictitious accounts would then email manufacturers purchase order agreements to receive items on credit. The clothing manufacturers, believing they were doing business with an established company, made and shipped the items to a warehouse in California. The clothing was then sold by TONY and REX CHIU to wholesale companies that paid them for the goods with wire transfers to the CHIUs’ company Play Market. TONY and REX CHIU received approximately $750,000 in payments.
 
In sum, the scheme resulted in the theft of 253,884 pairs of pants, mostly denim jeans and jogging pants, worth approximately $2,004,696.

Assistant D.A.s Mao Yu Lin and Thomas Reilly are handling the prosecution of this case under the supervision of Assistant D.A.s Julieta V. Lozano (Chief of the Major Economic Crimes Bureau), and Jodie Kane (Acting Chief of the Investigation Division). Principal Financial Investigator Chris Fenty, Rackets Investigator David Caban, Senior Rackets Investigator Ethan Zubkoff, Data Specialist Olivia Savell, Trial Preparation Assistant Madison Dyer, former Investigative Analyst Benjamin Kobrin, and former Trial Preparation Assistant Alessia Azermadhi also provided assistance with the investigation. Extradition Specialist Lilly Lucero also provided support.
 
District Attorney Bragg thanked former Detective Brian Little of the New York City Police Department and the U.S. Department of Homeland Security-Homeland Security Investigations, especially Special Agents Frank Iervasi and Tav Richman, for their assistance with the investigation.
 
Defendant Information

TONY H. CHIU
Mineola, NY
Charges:

  • Conspiracy in the Fourth Degree, a class E felony, one count
  • Identity Theft in the First Degree, a class D felony, 34 counts
  • Forgery in the Second Degree, a class D felony, 21 counts
  • Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 22 counts
  • Falsifying Business Records in the First Degree, a class E felony, one count

REX CHIU
Albertson, NY
Charges:

  • Conspiracy in the Fourth Degree, a class E felony, one count
  • Identity Theft in the First Degree, a class D felony, 34 counts
  • Forgery in the Second Degree, a class D felony, 21 counts
  • Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 22 counts
  • Falsifying Business Records in the First Degree, a class E felony, one count

JOSEPH SANCHEZ
People’s Republic of China
Charges:

  • Conspiracy in the Fourth Degree, a class E felony, one count
  • Identity Theft in the First Degree, a class D felony, 12 counts
  • Forgery in the Second Degree, a class D felony, 7 counts
  • Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 8 counts

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[1] The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.