FROM BRAKES TO DRUGS, COUNTERFEITS ON RISE
THE $1 million worth of outbound automobile engines seized by Federal marshals at the port of Houston a few months ago looked like new products off the General Motors production line. They were even packaged in what appeared to be G.M. boxes. In reality, they were counterfeit engines taken from cars in junkyards and painted to look new. ''There is counterfeiting that leads to theft and there's counterfeiting that leads to murder,'' said Joseph Dawson, spokesman for the Federal Office of Consumer Affairs. ''I hate to think of what could have happened if those shipments had not been seized. I hate to think of all the shipments out there that have not been seized.'' ''It's one thing to talk about counterfeit Izod shirts, they don't result in harm to your body,'' said James Bikoff, president of the International Anticounterfeiting Coalition, a San Francisco-based association of 300 companies. ''The same doesn't go for counterfeit brake linings, hospital heart pumps and drugs,'' all of which, he said, have been sold in the United States, all of which ''can kill you.''