PHOTOS: David Gruber

wo Manhattanites adorned in expensive-looking clothing slip out of a graffiti-covered storefront on Canal Street. On a Sunday afternoon, the shops crammed with name-brand merchandise are abuzz with label-crazed shoppers. "It looks just like the stuff they sell on Madison Avenue," one woman says as she inspects a $15 multicolored Gucci handbag." Yet, the bag is not actually made by the famed Italian company. It is an imposter that costs hundreds of dollars less than its authentic counterpart.

New York City is one of the fashion capitals of the world. In the high-priced world of style, many people can not afford to keep pace - and resort to a form of lying. People from all corners of the globe congregate on Canal Street to buy knock-off versions of designer brands that are synonymous with status.

For a fraction of the normal retail price, shoppers can buy the latest imitations of Gucci, Prada, Fendi and Louis Vuitton styles. Some take it seriously, for others it's a lark. But whatever the motivation, few realize that they are participating in international criminal activity that costs legitimate retailers millions of dollars every year.

Click below to experience the inside world of phony merchandise in New York City.