At least 10 people have been arrested and more than 7,000 bottles of phony whiskey, cognac and other spirits seized following a months-long investigation into a nationwide bootlegging operation.

The gang, headed by a 45-year-old man identified only by his surname, Lai, collected empty, discarded bottles of name brand liquors such as Chivas Regal and Remy Martin, and then filled them with generic drinking alcohol blended to taste, look, and smell like the real thing.

Wine samplers said the fake alcohol Lai mixed would easily have fooled ordinary consumers.

Lai and his associates sold the booze to nightclub managers around China who denied knowing it was fake, despite its heavily discounted price.

Lai's scheme began to come undone after police in the eastern port city of Tianjin received a tip from the China office of a Hong Kong liquor industry association that fake booze was being sold in the city on a large scale.