The estimated market value of counterfeit designer goods seized from two boutiques in Palm Beach has increased from nearly $2 million to $3.4 million, according to investigators.
Last month, Olena Austin, owner of Blesk Jewelry, was arrested and charged with selling counterfeit goods valued at $20,000 or more. The 51-year-old was released on a $50,000 bond. The boutiques sold knockoff items from brands such as Pucci, Chanel, Van Cleef & Arpels, Tiffany & Co., Rolex, Versace, and Bottega Veneta, investigators said.
Two undercover detectives purchased counterfeit items from Blesk stores. Investigators now report approximately 850 items were seized, 50 more than initially estimated.
PBPD Captain William Rothrock had previously indicated the market value might be higher after pending authentication. “We use a third-party expert to identify suspected counterfeit merchandise, seize the items, then have every single item evaluated by brand representatives for authenticity and value,” Rothrock explained.
After the updated figure of $3.4 million was announced, Rothrock stated the investigation is ongoing and may result in additional charges. A redacted probable cause affidavit noted that representatives from Pucci and Chanel confirmed some items purchased at Blesk were fake.
Austin and Blesk representatives have not responded to media requests.
The eight-month investigation began last fall following an FBI tip and was handed over to PBPD. Rothrock said salespersons or the owner might vet customers before showing or selling counterfeit merchandise, often offering these items to repeat customers or after lengthy conversations.
The investigation, dubbed “Operation Worth-Less” by the PBPD’s Organized Crime, Vice, and Narcotics Unit, involved an undercover detective purchasing Chanel-inspired earrings from the Worth Avenue store. A store employee indicated these designs were “heavily influenced” but not authentic. Chanel declined to comment on the investigation.
Frank Steinhart, president of the Worth Avenue Association, expressed concern about the situation. “It’s very sad that this is happening. It’s disturbing to have that type of retailer on the island, but it’s good the police took action,” Steinhart said.
Having been with the association for over 15 years, Steinhart was unaware of similar incidents in Palm Beach. He did not know Austin and was not familiar with Blesk stores. “There are many vintage stores in Palm Beach. Maybe I thought it was that type of establishment,” he said.
Worth Avenue has been a destination for high-end shopping for over 100 years, attracting designers like Gucci, Valentino, and Saks Fifth Avenue.
Steinhart, who oversees production for Stubbs & Wootton in Palm Beach, hopes the incident does not impact Worth Avenue shopping. “People need to respect buying luxury from the proper source. Those looking to buy luxury know to go to the right source,” he stated.