Customs-Fraud Whistleblower Case Settled

The former logistics staffer who reported the import-duty evasion will receive a $152K whistleblower reward. An importer of  Chinese-manufactured ready-to-assemble furniture sold through such retailers as Walmart and Wayfair has paid $798,334 to resolve whistleblower claims it fraudulently used undervalued commercial invoices to reduce its import-duty obligations. A former employee of Homestar North America alerted the U.S. government to the importer’s alleged double-invoicing

Former employees who blew the whistle on the duty evasion will share a $500k whistleblower reward. ADCO Industries, a Texas-based importer of industrial products, has agreed to shell out $2.5 million to end a whistleblower lawsuit alleging it knowingly undervalued merchandise from China to fraudulently reduce its customs duties. Two former ADCO employees initiated the customs-fraud whistleblower lawsuit under the False Claims Act and

Former Yakima employee to receive $500k False Claims Act whistleblower reward. Yakima Products, a maker of automobile accessories such as hitches and roof racks, will pay $3 million to resolve a whistleblower lawsuit alleging it knowingly underdeclared its customs duties and misdeclared the country-of-origin of its imports. The qui tam whistleblower, a former director of operations at Yakima, filed the False Claims Act lawsuit

Samsung C&T America allegedly declared incorrect HTS tariff classifications on its customs entry documents. A U.S. unit of the South Korean conglomerate Samsung (KSE: KRX:028260.KS) has agreed to pay $1 million to settle allegations it violated the False Claims Act by knowingly misclassifying imports to evade customs duties. According to the U.S. Department of Justice, Samsung C&T America knowingly filed customs entry documents misdescribing and listing inaccurate U.S.

International Vitamin Corp. allegedly violated the False Claims Act by misclassifying imports from China as “duty free.” International Vitamin Corp., a producer of store-brand vitamins and supplements, has agreed to pay $22.8 million to resolve allegations it violated the False Claims Act by knowingly evading customs duties on imports from China. According to the U.S. Department of Justice, IVC misclassified imports of

High Life LLC allegedly reported phony “first sale” prices on import declarations filed with CBP. New York apparel wholesaler High Life LLC has paid the U.S. government $1.3 million to resolve allegations it violated the False Claims Act by underdeclaring the value of its imports. According to the U.S. Department of Justice, High Life knowingly reported fictitious “first sale” prices on customs entry documents

A federal jury returned a $24 million judgment against an importer of Chinese steel pipe fittings, finding that it knowingly violated the False Claims Act by evading applicable anti-dumping duties. The importer says its non-payment of duties was “objectively reasonable.” False Claims Act lawyers are monitoring the appeal in U.S. v. Sigma Corp., which is scheduled for oral argument before a

OneBigOutlet allegedly evaded millions of dollars in duties on imports from China by filing commercial invoices with CBP understating its purchase prices. California importer RGE Motor Direct Inc., which does business under the name OneBigOutlet, has paid $3.25 million to resolve allegations it fraudulently underreported the prices it paid for furniture it imported from China.  The settlement ends a lawsuit brought

Importer of welded outlets knowingly evaded applicable anti-dumping duties A federal court in California has awarded $24 million damages—and an additional $2.7 million in attorney’s fees—to a corporate qui tam whistleblower that successfully sued a rival company under the False Claims Act claiming that it unlawfully evaded anti-dumping duties on “welded outlet” imports from China.  The whistleblower—Tennessee-based Island Industries, Inc.—accused importer Sigma Corp. of being able