Four former warehouse workers have been jailed for up to seven years after taking part in two schemes targeting 814 Chanel handbags and wallets worth at least HK$8.7 million (US$1.1 million) at a Hong Kong logistics facility.
The extraordinary plot involved 691 handbags and 123 wallets from Chanel's 2014-15 season–but there was a bizarre twist. The luxury goods were no longer for sale and had already been set aside for destruction.
The four men were sentenced by Hong Kong's High Court on Monday over attempted thefts from Chanel's storage areas at the Goodman Interlink logistics facility in Tsing Yi between June 2016 and February 2017.
The case centred on the defendants' efforts to exploit their knowledge of the warehouse and gain access to valuable Chanel merchandise before it was destroyed.
Two Schemes Targeted Hundreds of Chanel Items
The first scheme took place in 2016, when former employees Happy Ho Tung-shan, 35, and Ho Tsz-yin, 41, set aside 90 old-season Chanel handbags in a hidden part of the warehouse.
The bags were supposed to be sent for destruction in accordance with Chanel's policy, but instead they were concealed inside the facility. The second, much larger attempt came on February 2, 2017.
Happy Ho and Ho Tsz-yin teamed up with another former employee, Gary Cheung Ka-wai, 42, to take 33 cartons containing 601 handbags and 123 wallets.
The plot also involved former warehouse supervisor Ng Yiu-lun, 42, who provided the other defendants with an access code for a lift used by Chanel personnel to transport goods around the facility.
The attempted removal was stopped after the company contacted police immediately. The merchandise was recovered on the same day, preventing the cartons from being taken out of the facility.
Chanel Suffered No Financial Loss After Goods Were Destroyed
Despite the merchandise being valued at at least HK$8.7 million, Chanel ultimately suffered no monetary loss from the attempted thefts.
Judge Douglas Yau Tak-hong said the recovered merchandise was later destroyed as originally planned.
The detail adds an unusual twist to the case: the defendants were targeting luxury goods worth more than US$1 million, even though the items were no longer intended to reach customers.
The products had been removed from sale and designated for destruction as part of Chanel's policy of preserving the exclusivity of its luxury merchandise.
The court imposed lengthy prison terms on all four defendants.
Ng Yiu-lun received the longest sentence of seven years. Gary Cheung Ka-wai was sentenced to five years and three months, while Happy Ho Tung-shan and Ho Tsz-yin each received four years in prison.
The judge reduced the sentences because of the nearly 10-year delay in resolving the case.
The case ultimately ended without Chanel losing any of the high-value stock: the handbags and wallets were recovered before they could be removed and were later destroyed as originally intended.
For a luxury brand built around scarcity and exclusivity, the attempted theft offers a striking glimpse into the value criminals placed on merchandise that Chanel itself had already decided should never be sold.
The case also highlights the risks luxury brands face from insider crime, where employees with detailed knowledge of warehouse operations can exploit their access. Although the attempted theft was ultimately foiled, the prison sentences reflect the seriousness with which the Hong Kong courts viewed the sophisticated scheme targeting high-value designer goods.
