WASHINGTON ( CNN ) -- Three Chinese nationals accused of importing thousands of counterfeit luxury handbags in the United States have been arrested in the past two days , federal authorities announced Thursday . Shoppers sort through counterfeit brand name luxury bags and wallets on a Hong Kong street . `` This was a sophisticated criminal conspiracy that trafficked millions of dollars of counterfeit goods from China , profiting off the backs of legitimate companies and their hard-working employees , '' said Assistant Attorney General Alice Fisher . Authorities call it one of the largest counterfeit operations ever discovered , involving about 300,000 bags and wallets with names like Burberry , Gucci and Coach . For customers who bought the knockoffs , it seemed like a deal . They paid a total of about $ 16 million for what would have been more than $ 100 million in handbags , purses and wallets in legitimate retail sales . The alleged leaders of the counterfeit operations are three Chinese citizens living in New York . Chong Lam , 49 , and Joyce Chan , 39 , were arrested there Wednesday . Eric Yuen , 39 , was arrested Thursday in Las Vegas , Nevada . Immigration and Customs Enforcement agents who made the arrests began investigating the alleged scheme five years ago , after raids turned up counterfeit goods . The indictment was secretly returned in Richmond , Virginia , in October . The charges were unsealed when the alleged conspirators were taken into custody . Authorities seized and froze 29 bank accounts and three New York properties . The Chinese defendants will be taken to Richmond , where they will be arraigned at a later date , officials said . E-mail to a friend .
Authorities call it one of the largest counterfeit operations ever undertaken . ' : Scheme profited ` ` off the profits of legitimate businessmen '' Counterfeit ##ing allegedly involved 300,000 high - end bags and wallets . The alleged leaders are three Chinese citizens living in New York .