The Los Angeles Police Department served warrants on three distributors and arrested two people as part of the bust.
Among the products seized were fake soccer jerseys, which saw a boom in counterfeits possibly due to the FIFA World Cup tournament. Officials from Adidas flew to Los Angeles to monitor the crackdown.
Detective Rick Ishitani said the goods were not necessarily fakes made in China and there is suspicion some were made in LA.
The shopping area in downtown Los Angeles' Fashion District has a long history of peddling imitation goods.