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Kan. store owner plans to plead in fake goods case

WICHITA, Kan. (AP) -- A Wichita store owner charged with trafficking in fake luxury goods has told a court she intends to change her plea, a court filing Tuesday shows.

The formal notice of intent was filed in federal court in Wichita in the criminal case against Glenda Sue Morgan. A change-of-plea hearing was set for Oct. 29.

An indictment handed down in April charges Morgan and her Wichita shop, The Fabulous Store LLC, with conspiracy and trafficking in counterfeit goods.

Prosecutors allege Morgan sold handbags, wallets, sunglasses and jewelry bearing trademark designs and brand names that were not made by the companies. The brand names included Prada, Coach and Chanel, among others.

Coach filed a separate suit in May against the store, its owner and an employee for allegedly selling phony items bearing its brand name. That civil case is pending.

The store's business practices came to light after a postal carrier assigned to the store's route told the Department of Homeland Security the shop received about six to seven packages a month from China, according to a DHS affidavit. Agents eventually seized nearly 2,600 items valued at about $1.5 million if authentic.

Federal agents went to Morgan's Andover home in January 2011 and informed her of federal laws prohibiting the sale of counterfeit merchandise. Morgan agreed at the time to abandon the seized items, according to the affidavit.

In March, agents acted on a tip that Morgan had resumed selling counterfeit goods. They launched an undercover operation that led to the federal charges.