Restaurant selling fake merchandise?

There's a restaurant here in Roanoke Virginia called Hibachi Grill & Supreme Buffet.

There are at least 3 employees I know of, all chinese/taiwanese whom are selling fake iPhones, tablets and other merchandise out of the restaurant. I have seen craigslist postings for
*nearly free iPhone 4* and
*nearly free iPhone 5s*

They are usually always priced at $150 or $200 sometimes $250
More than half the time, its one of these people from this restaurant. I have answered their ads on at least 5 occasions, and all of the ads were posted by them, even using the same phone number… Just a different name. One time it was *zhang* and another time it was *zhu*

I want to know who I can call to report them, and if possible, who I can report the employees to, to have them handled? The Hibachi bosses do not even care their employees are doing this, and they told me to buzz off…

Added (1). Labor board? Local Government? I called the police. They said they need more evidence. They said they can't go by craigslist postings…

Police and trading standards. If you know someone who is going to buy an iphone online which could possibly be counterfit, you should use a credit card as you are protected. Using a debit card or transferring money between accounts will be accepted as a legitimate transfer and unless the police shut them down and take them to court you can''t claim compensation.

If they are selling knockoff I-phones, call the Apple Customer Service and tell them that you wish to report someone selling knock off I-phones. They will handle it from there.
The guilty party's will soon be visited by the FBI.

I'm assuming you called the police (that is the obvious choice if you think someone is doing something illegal) and I'm assuming the police told you they aren't breaking any laws (else why would you post this.)

So - if they aren't doing anything illegal - what's your beef?

Do you mean counterfeit?
How do you know they are counterfeit? If they advertise all the time, your local police must know about them (ie. Police track craigslist and ebay).

So unless you are 100% sure they are counterfeit, you do nothing.

The police

The police, if you're very sure.

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