US embassy cable - 05BRASILIA100

UNCLAS BRASILIA 000100 
 
SIPDIS 
 
STATE FOR WHA/BSC, EB/TPP/MTA/IPC SWILSON, AND CA/VO 
STATE PASS TO USTR FOR SCRONIN, LYANG AND BPECK 
USDOC FOR 
4322/ITA/MAC/WH/OLAC/WBASTIAN/JANDERSEN/DMCDO UGALL/DRISCOLL 
USDOC FOR 3134/USFCS/OIO/EOLSON/DDEVITO 
NCS FOR DEMPSEY 
 
E.O. 12958: N/A 
TAGS: KIPR, KCRM, PGOV, ECON, BR, Domestic Security & Crime 
SUBJECT: "O ESTADO DE SAO PAULO" ARTICLE ON THE ARREST OF 
JULIO LAW 
 
REF: A) 04 BRASILIA 2835, B) 04 SAO PAULO 1611, C) 04 
 
BRASILIA 1384 
 
1. The December 24 "O Estado de Sao Paulo" article set 
forth in paragraph 2 (below) describes the arrest by the 
GoB Federal Police of Julio Law -- the brother of notorious 
pirated goods trafficker Law Kin Chong.  Federal Police 
sources have told Mission officers that as of January 11, 
Julio Law remains in custody.  With respect to Law Kin 
Chong, a separate newspaper article, which appeared in the 
"Folha de Sao Paulo" of December 29, indicated that Law Kin 
Chong's request for habeus corpus was denied by the Federal 
Supreme Court.  Post thought that these items might be of 
interest to those in Washington who follow IPR developments 
in Brazil. 
 
2. (Begin Unofficial Embassy Translation) 
 
Headline:  In the Midst of Shopping, a Piracy Offensive 
 
Yesterday [December 23] at nine o'clock, the Federal Police 
arrested Chinese national Julio Law, brother of Law Kin 
Chong, the biggest smuggler in the country.  Julio was 
given five days of temporary arrest and will have to 
explain the origin of 18 tons of electro-electronics seized 
yesterday in two containers in the Port of Santos, in the 
Baixada Santista. 
 
Julio was followed from his home in Alphaville in Greater 
Sao Paulo to one of his companies on Rua 25 de Marco, in 
downtown Sao Paulo, where he was arrested.  From there, he 
was taken to Federal Police headquarters in Pirituba, 
western zone. 
 
According to the police, the products were in the name of 
one of Julio's companies.  Detective Antonio Wagner 
Castilho said that besides electronic goods, they seized 
tennis shoes, purses and watches -- all famous name-brand 
knock-offs. 
 
The containers came from China, passed through Africa where 
the destination and product content were altered, and 
entered Brazil through the Port of Santos, as if they were 
a shipment of plastics. 
 
Five detectives and 31 federal agents participated in the 
operation, from the seizure of the products to the 
detention of Julio Law.  His arrest was decreed by Judge 
Helio Egydio de Matos Nogueira, of the 6th Federal Criminal 
Court, and can be extended for another five days.  Julio 
Law was indicted for contraband, embezzlement, and tax 
evasion. 
 
Law Kim Chon has been in the custody of the Federal Police 
in Brasilia since June 1, 2004.  He was accused of offering 
a bribe to Federal Deputy Luis Antonio de Medeiros, to keep 
himself out of the CPI Piracy report. 
 
At 13h15, military police, justice officials and judicial 
experts conducted an order of search and seizure in the 
Mini-shopping Stand Center on Avenida Paulista.  The 
objective was to apprehend pirated software and computer 
video games.  A young man who worked in one of the stores 
was detained for questioning. 
 
End unofficial Embassy translation. 
 
Chicola