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August 5, 2011

Corinna printing co. probed by feds

By The Mainebiz News Staff

A Corinna screen printing business raided by federal and state officials earlier this year is under investigation for counterfeit goods trafficking, money laundering and tax evasion.

Federal officials are probing Berg Sportswear Inc. and its owners, Robert and Hedda Berg, for alleged "large-scale manufacture, sale and distribution of counterfeit merchandise" bearing logos of the Red Sox and other sports teams, Harley Davidson, John Deere and other companies, according to the Bangor Daily News. Robert Berg also allegedly collected cash for the counterfeit goods and ordered his staff to falsely report the company's income to hide the sales. A statement issued by the Bergs' attorney suggests that disgruntled former employees made "wildly inaccurate allegations" about the company, and disputed rumors that the company hires illegal aliens or is involved in drug-related activity, according to the paper. "Rather, what the agents found was a legitimate business trying to carry on and support its community and its employees in difficult economic times," attorney Charles Gilbert wrote in the statement.

No charges have been filed against the company, which continues to operate. The U.S. Attorney's Office declined to comment on the case or say if the company or the couple would be charged. The company has about 20 employees and is known for its politically incorrect and humorous apparel, as well as its University of Maine gear, which it is licensed to make.

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