Feds: Hair appliance business full of hot air

Posted by Press Release on June 30, 2015

Three men are accused of selling counterfeit high-end hair appliances and duping buyers into thinking some of the company's proceeds would fund breast cancer charities, federal authorities said.

The defendants were charged by information on Tuesday, June 30, of a conspiracy to import and sell counterfeit goods, said U.S. Attorney Zane David Memeger in a press release.

Stephen Voudouris Sr., 59, of Newtown Square; Yung Chung, 31, of West Chester; and Jaimmy Chun, 30, of Philadelphia, face charges of conspiracy, trafficking in counterfeit goods, and wire fraud. Voudouris is also charged with smuggling counterfeit goods into the U.S.

The release said Voudouris and Chung were partners and owners of Misikko.com, headquartered in Newtown Square, an online retailer of luxury hair care appliances, including flat irons and blow dryers. Misikko.com was not an authorized dealer of brands such as CHI, T3 and Babyliss.

According to the charging documents, the defendant attempted to maximize profits by seeking out Chinese manufacturing companies from which they could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss. It is further alleged that the defendants then resold the counterfeit goods as authentic, for top dollar, to the public.

Allegedly at the direction of Voudouris, the defendants tried to increase web traffic and profits by purporting to sell "Breast Cancer Awareness" products. For some "pink" products, Misikko's website represented that $25 from every purchase would benefit a prominent breast cancer foundation. It is alleged, however, that no donations were ever made to a breast cancer charity.

If convicted of all charges,Voudouris faces a potential advisory guideline sentencing range of 33 to 41 months in prison, a three-year period of supervised release, a fine of up to $1 million, and a $400 special assessment; Chung and Chun each face a potential advisory sentencing guideline range of 24 to 30 months in prison, a three-year period of supervised release, a fine of up to $750,000, and a $300 special assessment.

Each defendant is also responsible jointly and severally for full restitution of approximately $150,346, the release said.