Police Break Up Chip Counterfeiting Ring

MUNICH, Germany - Police in Germany and nine other countries have smashed an international gang suspected of counterfeiting computer components, German law enforcement officials said.

More than 2,000 law enforcement officials raided locations in France, Italy and Belgium, German police said.

Police in Bavaria carted away truckloads of counterfeit components and files. They issued arrest warrants for at least 24 Asians of Chinese descent on charges of counterfeiting, fraud, money laundering, and receiving stolen goods, they said.

Police said they believe the gang smuggled counterfeit components and sold them at market prices, causing about 500 million marks in damage.

Several individuals were arrested, but police withheld further details until a news conference tomorrow.

Intel said it is cooperating with the authorities and that the gang may have counterfeited its computer chips.

"We are supporting the investigation but we don't know if or how many of our chips were counterfeited or sold," an Intel spokesman in Munich said.

Intel's Pentium chips measure about one-inch square and sell for $200 to $1,000 each.

The raids were the culmination of a three-year investigation that began in 1993, centering on a Chinese businessman who held a Laotian passport, whose computer company was allegedly involved in tax evasion and money laundering.

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