Court Enters Default Judgment Against Counterfeit Sneaker Networks in Nike Suit

MANHATTAN (LN) — A federal judge in Manhattan entered a default judgment against dozens of defendants operating 52 counterfeit networks that sold fake footwear and apparel bearing Nike and Converse trademarks.

U.S. District Judge Alvin K. Hellerstein entered the default judgment on May 15, 2026, in Nike, Inc. and Converse Inc. v. Shiby NY Inc. et al., finding that the defendants had failed to answer the complaint or appear.

The judgment imposes joint and several liability on the individual defendants comprising each network for the amounts specified for their respective networks.

The largest individual network awards included $102 million for Network 14, comprising Xianguo Zhou and Antonio Murillo, and $100 million for Network 4, which includes defendants Na Ding and carlsneaker.com.

Network 28, a massive group including Star EFX Fashion Inc. and Watson Trading Inc., was ordered to pay $99 million. Network 44, featuring Jianhui Liu, also faced a $99 million award.

Hellerstein granted Nike’s request for an accounting of profits, noting that the defendants’ complete failure to produce documents made a precise calculation impossible.

"In light of the Defaulting Defendants’ complete failure to produce any documents in this action, making a precise calculation impossible on Plaintiffs’ claim for an accounting, the Court awards equitable relief against Defaulting Defendants of $1 million per mark per type of good infringed pursuant to 15 U.S.C. § 1117(c) as a proxy for Defaulting Defendants’ profits," Hellerstein wrote.

The court permanently enjoined the defendants from using Nike’s marks, recalling and destroying counterfeit products, and transferring or secreting assets.

The judgment also restrained all of the defendants’ assets, whether located in the United States or abroad, and ordered them to provide a complete list of entities from whom they purchased and to whom they distributed the counterfeit goods.

Defendants Erwin Castillo and Shiby NY Inc. had previously failed to appear at court-ordered hearings. Defendant Cameron Scott filed a motion to vacate the clerk’s certificate of default in February 2026 but withdrew it in March.

The case began in June 2024 when Nike obtained a temporary restraining order against then-identified defendants as members of the 52 counterfeiting networks.

The judgment requires the defendants to file a sworn written statement within 30 days detailing their compliance with the court’s orders.

Hellerstein, a Bill Clinton appointee, signed the order in New York.