Police increase estimated market value of counterfeit designer clothing and jewelry seized in Palm Beach to $3.4 million

After investigators initially estimated the market value of the counterfeit designer goods seized from two Palm Beach boutiques at nearly $2 million, they have now increased that amount to $3.4 million.

Last month, Olena Austin, owner of Blesk Jewelry, which has two stores in Palm Beach, including one on Tony Worth Avenue, was arrested and charged with selling or offering for sale counterfeit goods valued at $20,000 or more. The 51-year-old was later released on $50,000 bail.

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Both Blesk stores sold counterfeit clothing and jewelry from Pucci, Chanel, Van Cleef & Arpels, Tiffany & Co., Rolex, Versace and Bottega Veneta, according to investigators. Two undercover PBPD agents each purchased a counterfeit product from one of the Blesk stores. Investigators said Thursday that about 850 items have now been seized – about 50 more than initially estimated.

As reported in an interview last week, PBPD Captain William Rothrock said the estimated market value could be higher – as it turns out – because more authentication is pending. Asked about the authentication process on Thursday, he said, “We hire an outside expert to identify suspected counterfeit goods, seize the items and then have each individual item appraised by brand representatives to obtain affidavits of authenticity and value.”

After announcing the updated total of more than $3.4 million, Rothrock said Monday that the investigation is ongoing and could result in more people being charged. He declined further comment. A redacted probable cause affidavit noted that representatives from Pucci and Chanel confirmed that certain items purchased from Blesk were counterfeits.

Austin and Blesk representatives did not acknowledge media inquiries earlier this week.

The eight-month investigation was launched last fall after the Federal Bureau of Investigation received a tip. FBI agents then turned it over to the PBPD. In an interview with WWD last week, Rothrock said, “It appears that the vendors or the owner may be screening customers before showing them or attempting to sell them these (counterfeit) goods. It appeared that when a regular customer was there or when there was a lengthy conversation about some of the items, the possibility of purchasing something that was not on display came up,” he said.

The Palm Beach Police Department’s Organized Crime, Vice and Narcotics Unit called the investigation “Operation Worth-Less.” Before an undercover officer purchased a pair of Chanel-inspired earrings with intertwined “Cs” at the Worth Avenue store last month, he was told by a store employee that the items in the store had “heavily influenced” designs but were not authentic, the affidavit states. A Chanel spokeswoman said the company had no comment on the investigation at this time.

Commenting on the counterfeiting allegations, Frank Steinhart, president of the Worth Avenue Association, which includes more than 100 retailers, said: “It’s very sad that something like this happens.”

He continued: “It was very, very disturbing to have this (alleged) type of retailer on the island. Also, it was great that the police department took the necessary action as part of the investigation to stop this.”

He has been a member of the association for more than 15 years and is unaware of any similar incidents in Palm Beach. Steinhart said he does not know Blesk’s owner, Austin. “I don’t know the store very well. I know they have two locations. But I’ve never been to either one. There are a lot of vintage stores in Palm Beach. Maybe I thought it was one of those stores when I walked by,” Steinhart said.

For more than 100 years, Worth Avenue has been an established address for luxury shopping, attracting designers such as Gucci, Valentino and Saks Fifth Avenue.

Steinhart, whose day job oversees production at Stubbs & Wootton, which operates a store in Palm Beach, hopes the Blesk incident doesn’t affect shopping on Worth Avenue. “People have to respect buying luxury goods from the right source. There are many stores and anyone who buys luxury goods knows they have to go to the right source,” he said.

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