Fake Gucci, Vuitton bags seized in Italy Police raid counterfeiting factory in Prato, Italy, said to be run by Chinese businessmen. September 25 2006: 6:33 PM EDT MILAN (Reuters) -- Italian police have confiscated more than 650,000 fake Gucci and Louis Vuitton bags and other branded accessories in the Tuscan town of Prato in a raid on a counterfeiting factory owned by Chinese businessmen. Police said in a statement on Monday the factory was also used as a dormitory for illegal immigrants who produced the bags. During the raid two such immigrants were arrested and face deportation. One of Louis Vuitton's popular handbags that has been duplicated by counterfeiters.Police reported two Chinese businessmen to prosecutors for counterfeiting, handling stolen goods and using illegal labor. "Sadly, Prato has become a cradle of counterfeiting in Italy," a policeman told Reuters by phone. Many Chinese businessmen have set up clothes and accessories factories in Prato, a textiles hub since the Middle Ages, to benefit from proximity to European markets while producing cheap goods with a "made in Italy" label. Louis Vuitton, known for its monogrammed brown leather bags and other luxury goods firms, has successfully sued vendors of cheap imitations in China, where brand piracy is rife.