I was in NYC over Columbus holiday our Canadian Thanksgiving. The streets alone are just jammed packed with tourist and all those selling fakes took up half the sidewalk alone, literrally covering I think (Broadway). It was awful.
As for the police, I saw a cop peaked around the corner of an alley way in Chinatown and just said, hey what's going on buddy? and just walked off. It was such a joke, the police don't seem to care, I guess it is so common that they just don't care.
We were sitting at McDs for a snack and every woman walked in was carrying a fake. My husband and I was counting them all.