Federal officials have dismissed an indictment charging an Illinois woman arrested in Mercer County with trademark counterfeiting after she completed a one-year diversion program.

Xiao Qin Liang, 38, of Woodbridge, Ill., was required to abide by the law, attend work or school regularly, and notify a program supervisor of her employment status, whereabouts and address.

Ms. Xiao was a passenger in a van driven by He De Jin, 41, of Woodbridge, when it was stopped for driving 60 mph in a 45 mph construction zone at 1:30 p.m. May 19, 2005, on Interstate 80, Findley Township, said state police and U.S. Immigration and Customs Enforcement

Both occupants are natives of China.

Police found a Louis Vuitton handbag lying on a stack of covered material and suspected it was counterfeit, ICE said. A search of the van turned up 998 suspected counterfeit items, including wallets and watches, ICE said.

He, an illegal immigrant, said he bought the items in New York and planned to sell them at flea markets in Illinois, ICE said. He paid between $5 and $7 for each bag, while the genuine articles fetch $400 to $800 each, ICE said.

He pleaded guilty in May to a charge of trademark counterfeiting and aiding and abetting, and was sentenced to 5 years’ probation.

Ms. Xiao, who was pregnant when arrested, claimed to have gone to New York to see a Mandarin-speaking obstetrician, ICE said. She said she did not know where He obtained the merchandise, although she admitted writing out a check for He to buy items. Her purse contained receipts of purchases made in New York and business cards for New York handbag importers and clothing and jewelry dealers, ICE said.