FatWallet.com: Counterfeit Manufacturer coupon operation busted in Phoenix ., posted on 07-11-2012 01:06 AM

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Counterfeit Manufacturer coupon operation busted in Phoenix .

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News LINK: [azfamily.com]http://www.azfamily.com/news/PD-Counterfeit-coupon-operation-bus...
Authorities in Phoenix took three people into custody, raided three homes and seized valuable property on Tuesday as part of what police are calling a "first of its kind" case in the United States.

According to investigators, more than 40 of the Nations largest manufacturers have fallen victim to a new kind of coupon forgery and counterfeiting.

Approximately 4 years ago, extremely high quality copies of manufacturers coupons began to surface in the United States from an unknown source.

The companies that were targeted in this apparent scam, in conjunction with the Coupon Information Corporation (CIC) hired private investigators to find out where the coupons were being sold in the United States.

These investigators discovered most of the fake coupons were being used in Arizona. Investigators also found that the coupons were being sold through the website, Savvyshoppersite.com. The site was doing business as Savvy Shopper,
but is in no way related to the local consumer magazine.

The Phoenix Police Department working in conjunction with the private sector, members of the FBI Internet crimes unit and internal resources, put a case together to prosecute the people behind this alleged fraudulent coupon site.

"This is an international investigation because we know that the coupons we're talking about were not manufactured here in the United States but they were shipped here and then distributed via the Internet and other media outlets," said Officer James Holmes with the Phoenix Police Dept.

One of the houses that police raided today is at 36406 North 29th Avenue. Another house is located about one mile away at 35509 North 31st Drive. That is northeast of Interstate 17 and Carefree Highway. The third home raided by police is in South Phoenix.

Police seized boxes of coupons, vehicles, guns and other property.

Police say the scope of the investigation and the economic impact are massive with hundreds of millions of dollars in losses.

"We're talking about anywhere from $400 to $600 million in loss," said Holmes. "This is to American companies who produced American products and hire American citizens."

Holmes said that people who knowingly use the fake coupons are committing a Class 6 felony and they can be arrested for it.