The investigation began after police received a tip from a woman saying her daughter had purchased a suspicious Louis Vuitton wallet from a store called Cobbler's Corner.
An undercover officer went to the store and found many handbags with brand names like Tory Burch, Dooney and Bourke, Chanel, Gucci, Louis Vuitton, Chloe and Jimmy Choo. Authorities contacted handbag manufacturers, and they sent private investigators to the store. The investigators quickly determined the goods were counterfeit.
Detectives ended up finding $100,000 worth of counterfeit designer handbags and other goods at the store. They also found over $260,000 worth of counterfeit merchandise and about two pounds of marijuana at a home of one of the fake handbag suppliers.
Customs officials determined most of the merchandise was shipped directly from China to Laguna Beach.
The case remains open and no arrests have been made.