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A Rehoboth Beach seasonal officer purchased a pair of what he thought were designer Oakley sunglasses from a Rehoboth Avenue shop for $5. When he mentioned that information to his supervisor during a squad meeting, it set off a chain reaction resulting in a raid and business closure. Police raided the S&S Bargain Attic Thursday, July 26, and seized an estimated $75,000 to $80,000 in counterfeit merchandise. Hundreds of bags of merchandise, as well as the store’s business records, were removed from the store.
The store, which has been closed down since the owners’ business license was revoked by the city, is located above Cold Stone Creamery, the former Gershman’s building, near the Boardwalk.
Det. Kevin Jones said the department had received an anonymous complaint that the shop, which opened for business this summer, was selling counterfeit goods, including purses, handbags, wallets, sunglasses and jewelry.
Jones said he published the information in his weekly report to officers. “One of the seasonal officers said a guy working there told him the sunglasses were knockoffs,” he said. “He also said he hoped the city would not come down on them for that.
“An officer went in to verify what we were told; plus we had some inside information,” Jones said. “It was pretty obvious what was going on when items were being sold well below market value.”
Brand names being used at the shop included Gucci, Coach, Prada and Tiffany & Co.
Jones said the city has revoked the business license for S&S Bargain Attic and without a license the shop was forced to close. Jones said investigators are reviewing the store’s business records and charges involving trademark counterfeiting are forthcoming against the owners when all the names can be verified.
He said it appears the merchandise originated in New York City.
Jones said it is unusual for a counterfeit shop to operate within the city limits of Rehoboth. “But stuff like this runs rampant at flea markets in some unincorporated areas,” he said.
“Although there is no indication of this, a lot of times, money from these type of operations is used to fund criminal activity, and even terrorist activity,” Jones said.
Contact Ron MacArthur at ronm@capegazette.com
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