Suspects arrested over the production of counterfeit footwear at a factory in Makun, Sagamu, Ogun State, have confessed that imitating popular foreign brands helped the company attract more customers and increase sales.
The Police Special Fraud Unit (PSFU), Lagos, disclosed this on Wednesday while giving an update on its investigation into the activities of Meibalun International Nigeria Limited, accused of manufacturing and selling footwear bearing the trademarks of international brands without authorisation.
The suspects were identified as Ojeleye Esther, Olulenu Adebola, Adewunmi Titilayo and two Chinese nationals, Zhu Hai Chen and Zhou Hai Fen.
According to the police, the company portrayed itself as a manufacturer of Nigerian-made footwear but allegedly produced shoes bearing the names and trademarks of Gucci, Nike, Timberland, Louis Vuitton, Adidas and other foreign brands.
The police said the suspects admitted that using imitated foreign labels generated higher sales and patronage than marketing the products under Nigerian-made branding.
Further investigations by the unit’s Stock Capital Market Fraud Section also uncovered alleged financial irregularities in the company’s operations.
The police alleged that payments made by customers were diverted into private bank accounts instead of the company’s designated corporate account, prompting investigators to trace the ownership and movement of the funds.
In its statement, signed by the Police Public Relations Officer, DSP Ovie Ewhubare, the unit said the financial investigation was aimed at establishing how the proceeds were handled and utilised.
The Commissioner of Police, PSFU, Eloho Edwin Okpoziakpo, said the unit’s mandate extended beyond conventional banking and investment fraud to commercial activities capable of undermining the integrity of the financial and business environment.
He assured that the investigation would be conducted professionally and in accordance with due process, adding that anyone found culpable would be brought to justice.