Here is where the "ignore the letter" advice stems from.
Here in the USA, there is a law firm called Johnson & Pham. They represent the owners of the P90X, Your Baby Can Read, Shaun Insanity and other popular products. They regularly remove eBay auctions for their client's products. They get user information from eBay and send a threatening letter accusing the recipient of selling counterfeit merchandise.
A friend of mine received one. She listed her LEGITIMATE set for sale on eBay after her husband had not used it in nearly a year. She was really freaked out about it. So I did some digging and found out that they send many letters, but file few lawsuits. You can find out more about his by doing a Google search. Many people do so and choose to ignore the letter from J&P.
But that does not mean that every copyright holder takes the same approach. More and more, the movie studios especially are having undercover buyers purchase items from sellers they believe to be selling counterfeits. This gives them the proof they need in court to win their case. Then they file a lawsuit for damages.
And I am not trying to personally attack you, but you REALLY need to change your attitude and speak with an attorney. SERIOUSLY.
So far, your response has been:
1) I don't have the money, I spent it on more merchandise and for other stuff.
2) I'm shocked, how can they do this.
3) I'll tell my sister to lie and say someone hijacked her account.
4) It's the
stealth guide's fault because it says using a relative's address is OK.
Do you see where I am going with this? Do you see the pattern here? EVERYONE but YOU is to blame for the situation you are in. And that could not be further from the truth.
I have read the
stealth guide and refer to it often. NOWHERE in the guide does it say that selling counterfeit merchandise is OK. The guide shows you how to use techniques that are PERFECTLY LEGAL to get back on eBay. If you decide to add counterfeit merchandise to the mix and turn it into a criminal enterprise, that is on YOU, DON'T blame the guide!
Blaming your sister for signing for the letter is just reprehensible! Telling her to lie for you is even worse.
Trust me, if they want to investigate what happened, they CAN find the truth! Payments had to end up in a bank account eventually. A subpoena can get the account holder information from the bank easily enough.
Right now, what you want is for this to go away, with no consequences. I doubt that will happen. You need to come to terms with this.
YOU decided that selling counterfiets was easy money. YOU involved your sister. YOU got caught.
If you get an attorney, you can minimize the damage. Hopefully, the attorney will be able to get them to leave your sister alone. That should be priority number one! Then, maybe they can negotiate a settlement with the copyright owner. A good attorney can REALLY HELP YOU!
The alternative is to further involve your sister in this mess and have her lie for you. But, believe me, they have heard these lies before. And if they have to investigate further and they nail you, don't expect any mercy. They will want the largest judgment the court will allow. And your sister could end up in even more trouble.
THINK ABOUT IT - you were not smart enough not to get caught in the first place. So what makes you think that now you are smart enough to beat an experienced copyright attorney at their own game?
Sorry if this is harsh. I'm not trying to personally attack you. I'm trying to make you see REALITY.
Being Sued for selling DVD's 
