The owner Bobby Griffin also known as Bobby Smallwood was arrested on felony charges of possession and sale of counterfeit merchandise.
Police confiscated half a million dollars worth of phony designer jeans T-shirts, handbags and shoes.
The Homeland Security Team within the Fresno Police Department got a tip Jazzy Jeans was selling the counterfeit items and were told the profits could be linked to other criminal activity
"Now this criminal activity could involve gangs and drug organizations here - domestically within the US - it could be funded south of the border ... and it could also be funneled overseas to countries that support terrorism," said Sgt. Ron Grimm.
Grimm says his team wants to find out who provided Bobby Griffin with the funding to buy hundreds of cartons full of merchandise ... and where the profits from the sale of that merchandise went.
Grimm says no city sales taxes, state sales taxes or federal taxes have ever been paid on the merchandise.
