The Motown Record Company of Detroit, Michigan had some counterfeit labels on their records. They found 5,000 counterfeit labels on Motown records in New York City. These counterfeit labels were made by a company in Long Island City, New York. The company became suspicious when record sales was for 50,000 records whereas the company had only made 5,000 records. Employees of a record company in New York City were charged with making these counterfeit records and selling them for their own profit. Almost 3,000 counterfeit labels were located by the New York City Police Department when subjects were arrested.
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