Last defendant in counterfeit DVD scheme sentenced

TAMPA, Fla. — A Lakeland man was sentenced to 33 months in federal prison Tuesday for trafficking in counterfeit labels following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

John C. Gaglione Jr., 49, must also pay a monetary judgment of $365,265, the proceeds of his criminal conduct, and $180,000 in restitution.

Gaglione is the last of eight individuals sentenced for their involvement in a global counterfeit motion picture DVD investigation that began in Lakeland and extended to the People's Republic of China. He pleaded guilty Oct. 24, 2013.

According to court documents, in late 2010, Gaglione and co-conspirators began making bulk purchases of counterfeit motion picture DVDs. They purchased the counterfeit DVDs from Jian Huang, aka China Glen, a supplier based in the People's Republic of China. Huang's company was called TM Wholesale. HSI special agents apprehended Huang in April 2012.

After Huang's apprehension, Gaglione developed and acquired counterfeit DVDs from other sources of supply. After acquiring the counterfeit DVDs, Gaglione sold them to customers in the United States. He sold them online via Ebay, at a family run sports card store called Lakeland Sports and Collectibles and from a flea market booth in Auburndale.

On Aug. 10, 2012, Jian Huang pleaded guilty to conspiracy and trafficking in counterfeit goods. He was sentenced to 51 months in federal prison Nov. 2, 2012. The court also ordered Huang to pay more than $1.2 million in restitution to the Motion Picture Association of America (MPAA).

The MPAA is a trade association that represents certain motion picture, home video and television industry companies, including Sony Pictures Entertainment Inc., Warner Bros. Entertainment Inc., Paramount Pictures Corp., Twentieth Century Fox Film Corp., Walt Disney Studios Motion Pictures and Universal Studios.

Co-conspirators Alex Lee Lim, Robert Edmond Mattie, James William Ray, Donald Kenneth Brown Jr., Martin William Grenfell and Christopher Alexander T. Clark each pleaded guilty to trafficking in counterfeit labels. On Nov. 15, 2012, Lim was sentenced to 51 months in federal prison and ordered to pay restitution to the MPAA in the amount of $280,752.

On Nov. 30, 2012, Ray was sentenced to 46 months in federal prison and ordered to pay $261,541 in restitution to the MPAA. Ray was also ordered to forfeit $100,005 in cash seized at the time of his arrest.

On Dec. 6, 2012, Mattie was sentenced to five years of probation with the first 12 months to be served on home detention.

On Feb. 22, 2013, Grenfell was sentenced to 3 years of probation, and Brown was sentenced to 18 months in federal prison and ordered to pay $3,000 in restitution to the MPAA.

Clark was sentenced May 16, 2013, to 36 months of probation and ordered to pay $6,000 in restitution to the MPAA.

Assistant U.S. Attorney Mark E. Bini prosecuted this case.