What did Lindsay Castelli do? Long Island boutique owner arrested for $40M scam

Lindsay Castelli, a 31-year-old boutique owner, was arrested for allegedly selling counterfeit designer goods, on October 7.

According to ABC, Castelli's boutique, which is based in Plainview, Long Island, sold thousands of items with fake designer labels, including Louis Vuitton, Ugg, Dior, Prada, Gucci and Chanel. Nassau authorities reported finding 22 printing presses in the boutique's premises.

As per the New York Post, Lindsay Castelli is scheduled for a court appearance in November. If convicted, she could face up to 3 years in prison.

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What are the allegations against Lindsay Castelli?

According to Nassau Authorities, the investigation into Lindsay Castelli's alleged counterfeiting operation began on April 21. In an interview with CBS, Nassau County District Attorney Anne Donnelly noted the "sophistication" of the entire operation, stating:

“This was not a mom-and-pop operation. This was a sophisticated operation operating two fashion merchandise companies, Christian Salvatore New York and Linny’s Boutique."

She added:

"A storefront that you could have walked by hundreds of times and not realized what was in it was thousands and thousands of dollars of counterfeit goods."

According to Nassau County Police Commissioner Patrick Ryder, the false labels in the store could be valued at approximately $40 million, if passed off as real.

Ryder stated:

"The store contained thousands of synthetic, heat sealed counterfeit Gucci, Louis Vuitton, Chanel, Prada, Dior and labels purchased from China. They would take a hat, a $3 hat, a fifty cent item on the side here, they would heat seal it onto the hat, and sell the hat for $300. Simple $10 sweatshirt, you put the Chanel brand on it."

Ryder said that officials were cracking down on counterfeiting rings across the country, and that Lindsay Castelli's boutique would not be allowed to operate in the US again.

In an official statement, US Postal Inspector Glen McKechnie said that the counterfeit products were being shipped all over the country, further noting:

"Not only did she cheat the retail industry, but she also cheated postal customers that must ultimately shoulder the costly burden."

In an interview with CBS, a former customer of the boutique, Carole Rutvosky, expressed her dismay at the accusations against Castelli, revealing:

"(I feel) totally betrayed, you go in expecting that you're buying as advertised, and that you're buying quality."

Another shopper, who remained anonymous, said that she always suspected that Castelli's products may not have been genuine luxury goods, further adding:

"I think if you're shopping here in that kind of store you expect you're not buying a full real Gucci bag."

No one else has been arrested in connection with Lindsay Castelli's counterfeiting ring.