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Trouble In Brooklyn, NY

Residents and business owners say illegal vending along Brighton Beach has gotten out of control, and the problem is more complicated than just demanding enforcement.

Under the subway tracks of a bustling commercial corridor, a rogue "pop-up flea market" has become a sore spot.

"They are taking the entire block, blocking entrances to businesses"

For years, a group of vendors has rolled out blankets on sidewalks near Brighton Fourth Street, selling clothes and household items directly in front of brick-and-mortar shops.

"It's a club because they know each other. I know them, they talk to each other. That's how they spend their weekend," said Yelena Makhnin, executive director of the Brighton Beach Business Improvement District.

Makhnin said what began as a small quality-of-life issue has escalated into an ongoing struggle. 

"Saturday and Sunday, they are taking the entire block, blocking entrances to businesses, using businesses' door to put their clothes," she told CBS News New York's Hannah Kliger.

The problem intensified during the pandemic, when a local weekly flea market around the corner paused. Vendors began setting up on sidewalks, without paying for a table at the official market or obtaining city permits.

"As an organization, we spend money for advertising and in marketing, we want people to come to Brighton," Makhnin said.

"When they leave, they leave all the garbage"

Business owners say they're feeling the impact. Dimitry Bederoff, owner of Robert Daniels Salon, said the unregulated vendors have an unfair advantage.

"They don't pay taxes. They don't pay rents. They have no bills to pay," he said.

Bederoff, whose beauty salon has operated in the neighborhood for two decades, said legitimate businesses are left to shoulder the consequences. 

"Our clients having trouble to get in. They are scattered all over the sidewalk and when they leave, they leave all the garbage," he says. "These agencies, you know, they'll come in and they'll give us a ticket."

"I can't believe ... there is no solution"

Many of the sidewalk sellers are elderly, and business leaders stress that no one wants to see seniors arrested. But Makhnin believes more consistent enforcement could help. 

"It should be more often, it should be follow ups. I can't believe, and I will not believe, under any circumstances, there is no solution," she said.

According to city agencies, enforcement efforts have been ongoing.  NYPD and Department of Sanitation confiscated 10 vendor setups and issued one summons. NYPD said officers are cracking down on the sale of counterfeit goods and controlled substances. DSNY reports issuing 51 summonses and making 60 confiscations year-to-date.

In a statement, a police spokesperson said the 60th Precinct is "…working to find an area where residents can sell their items."

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HSI Dallas seizes $1.3M in counterfeit goods at the World’s Largest Flea Market

Homeland Security Investigations (HSI) Dallas special agents seized $1.3 million in counterfeit goods during the First Monday Trade Days market in Canton, Texas.

Over 1,000 items were confiscated, including several boxes of luxury designer goods such as high-end purses, caps, shoes and sunglasses.

“Those who attempt to profit from the selling of counterfeit items will face consequences for their illegal actions,” said Ryan L. Spradlin, special agent in charge HSI Dallas. “The infringement of intellectual property rights is a growing threat to our economic viability that cannot stand.”

The Canton Police Department, Texas Department of Public Safety Criminal Investigation Division and industry experts with Investigation Services Company, LLC each played a critical role in supporting the seizure. The Van Zandt County District Attorney, Tonda Currey will be handling the prosecution. Felony charges are pending for the individuals allegedly selling the counterfeit goods.

“Buying and selling counterfeit items poses a significant threat to our local economy and the dedicated vendors who come to Canton for legitimate business ventures,” said Tonda Curry, criminal district attorney, Van Zandt County. “We will work relentlessly with our federal law enforcement partners to prosecute anyone who sells fake items at our trade days, having no tolerance for those who disregard laws related to trademark infringement.”

HSI focuses on keeping counterfeit products off U.S. streets and dismantling the criminal organizations behind such activity. The proliferation of counterfeit goods is increasing at an alarming rate often associated with organized crime and groups that pose a risk to public safety and national security.

HSI protects legitimate trade and commercial systems by investigating intellectual property crime, combating trade fraud and preventing the illicit proliferation of sensitive U.S. technology and weapons.

The HSI-led Intellectual Property Rights (IPR) Center, working collaboratively with its public and private sector partners, stands at the forefront of the U.S. government's response to combatting global intellectual property theft and enforcing intellectual properties rights violations. The IPR Center was established to combat global intellectual property theft – and, accordingly, has a significant role policing the sale and distribution of counterfeit goods on websites, social media and the dark web. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.

The charges mentioned are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Homeland Security Investigations (HSI) is a directorate of U.S. Immigration and Customs Enforcement (ICE) and the principal investigative arm of the U.S. Department of Homeland Security, responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 Special Agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

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