Tony Chiu of Mineola and Rex Chiu of Albertson sold more than 250,000 pairs of fraudulently obtained pants to wholesalers, DA Bragg says

Two brothers from Long Island have been accused of conspiring to fraudulently obtain more than $2 million in clothing using stolen business information from a New York City home furnishings importer for whom a co-conspirator had provided legal services, the Manhattan District Attorney’s Office announced Wednesday.

Prosecutors said Tony Chiu, 64, of Mineola and Rex Chiu, 65, of Albertson sold more than 250,000 pairs of fraudulently obtained pants to wholesalers as part of a six-year-old scheme orchestrated by Joseph Sanchez, 55, of China. The alleged scheme resulted in a 79-count indictment that includes charges of conspiracy, identity theft, forgery and criminal possession of a forged instrument, Manhattan prosecutors said.

Sanchez, a now-suspended attorney who had done work for Mod Societe, LLC of Manhattan, used that company’s credit to get overseas manufacturers to produce and ship the clothing to the United States, prosecutors said.

“This alleged deception affected a Manhattan-based company that entrusted its attorney with its business dealings,” Manhattan District Attorney Alvin Bragg said in a statement. “The defendants — including this formerly licensed attorney who had an ethical and professional responsibility to act with honesty — allegedly lied again and again to enrich themselves.”

Beginning in February 2017, the three defendants are accused of fraudulently obtaining Mod Societe’s corporate papers, tax records and business identification numbers to open a bank account and forge purchase orders in the company’s name, prosecutors said.

Sanchez allegedly directed a staffer to register a web domain using Mod Societe’s name so the men could create email accounts for fictitious company officers to set up the orders. The clothing manufacturers believed they were doing business with an established company and shipped the pants to a warehouse in California, according to the news release.

In total, the scheme allegedly led to the production of 253,884 pairs of pants — mostly denim and jogging pants — valued at more than $2 million.

The Chiu brothers, who are also charged with falsifying business records, received about $750,000 in payments for the clothing through their company Play Market, prosecutors said. 

Court records show Tony Chiu pleaded not guilty at his arraignment in April. His brother's arraignment was adjourned on that date. Both Long Island men are due back in court July 11.

The case is being prosecuted by Assistant Manhattan District Attorney's Mao Yu Lin and Thomas Reilly. The New York Police Department and U.S. Department of Homeland Security assisted in the investigation, prosecutors said.

By Grant Parpan

grant.parpan@newsday.com@GrantParpan

Grant Parpan covers Suffolk County courts and federal courts for Newsday. A Long Island native, he joined Newsday in 2022.