Andrew,
Edith Rosenbaum, later Russell, was arrested by US Customs in 1917 on charges of smuggling foreign merchandise. She was actually jailed and held on a fairly high bond. It was claimed by officials that 5 designer gowns in Edith's luggage were not her own, as she had declared, but were purchases for clients of her import operation. In addition Customs seized $3,000 worth of apparel from her NY apartment.
It was proven in the course of her trial that the 5 dresses in question were in fact sold to a Madison Avenue retailer but a jury acquitted Edith as her counsel was able to satisfactorily prove that she was a non-resident of the US and so was not required to declare this merchandise. As to the gowns and accesories taken from her home, these were found to have been her own property or were legally imported customer purchases.
Whether or not Edith really should have been found guilty is debatable (she did maintain a residence on Long Island at this time so it's not clear how she got around that fact) but later in her career as a buyer/stylist, in the 1920s, it appears she engaged in a bit of business frowned on in the rag-trade, a little racket called "renting," by which buyers purchased designs from various fashion houses then re-sold them for higher prices to other buyers.
Randy