Centric Parts - Customs Fraud ($8 million)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging auto parts distributor Centric Parts misclassified brake pads imported from Asia to avoid millions of dollars of customs duties.  In July 2020, the company agreed to pay $8 million to settle the matter.  Our client (along with a second whistleblower) received a whistleblower award of 18.5% of the government's recovery.  Read more -- DOJ, CC.

Constantine Cannon Client Slams the Brakes on Customs Fraud in $8 Million Settlement Against Auto Parts Distributor Centric Parts

Steve Hughes, a whistleblower represented by Constantine Cannon, slammed the brakes on a long-running scheme by his former employer to evade customs duties, resulting in an $8 million settlement of the whistleblower’s False Claims Act lawsuit against CWD, LLC. The Carson, CA-based company, which does business as Centric Parts, is one of the largest aftermarket brake and chassis parts distributors in North America. The settlement resolves allegations that Centric misclassified...

Auto Parts Distributor Centric Parts Settles Customs Fraud Whistleblower Lawsuits for $8 Million

Constantine Cannon is pleased to announce an $8 million settlement on behalf of its whistleblower client in a False Claims Act lawsuit against CWD, LLC. The Carson, CA-based company, which does business as Centric Parts, is one of the largest aftermarket brake and chassis parts distributors in North America. The qui tam suit alleges that Centric misclassified brake pads imported from Asia to avoid tariffs, and concealed the decade-long misconduct...

Pure Collection - Customs Fraud ($908,100)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging Pure Collection avoided paying U.S. customs duties on its goods shipped from the United Kingdom. In February 2018, the company agreed to pay $908,100 to settle the matter.  Our client received a whistleblower award of 18% of the government's recovery.  Read more -- Financial Times, DOJ, PR Newswire, CC.

U.S. Government Joins Constantine Cannon Case Brought By U.K. Whistleblower against British Retailer for Customs Fraud

By the C|C Whistleblower Lawyer Team Constantine Cannon LLP is pleased to announce that the U.S. Government has intervened in its client's whistleblower case against Pure Collection Ltd., a Harrogate, England-based e-retailer of luxury cashmere and apparel. The Government also brought claims against Pure's current acting CEO, Samantha Harrison. The whistleblower lawsuit, among one of the first whistleblower cases brought in the U.S. by a U.K. citizen that the Government...

DOJ Intervenes in Whistleblower-Initiated Customs Fraud Case (and, Likely Unintentionally, Potential Family Feud)

The Department of Justice’s (DOJ) intervention last week in a whistleblower-initiated False Claims Act case is going to make for an awkward holiday season for at least one family. The case, US ex rel. Xing Wei v. Yingshun Garments, Inc. et al, was filed in January 2013 in the Southern District of New York and alleges a scheme to avoid import duties on women’s clothing manufactured in China and sold...

Top Ten Federal Financial Fraud Recoveries of 2022

Federal enforcement of financial fraud takes many forms.  This year, thanks to positive developments in the world of money-laundering enforcement, we have expanded our Top Ten Lists related to federal financial fraud. In addition to documenting SEC and CFTC enforcement actions, FCPA enforcement, and money-laundering enforcement, the following list focuses on financial fraud in other realms. The Consumer Financial Protection Bureau (“CFPB”) had an active enforcement year. Several of the...

Top Ten Environmental Fraud Settlements for 2020

In many ways, the COVID-19 pandemic uprooted our routines and put life on pause in 2020. But environmental fraud continued unabated, and so did enforcement actions against the perpetrators. We saw two major enforcement actions relating to devices designed to evade emissions requirements, several enforcement actions relating to water contamination and the knowing sale of products containing harmful pollutants, and several more against companies who took advantage of environmental tax...

Top Ten Federal Financial Fraud Recoveries of 2020

The U.S. government has many enforcement options for financial and investment fraud, including those that provide for whistleblower rewards such as the SEC Whistleblower Program, the CFTC Whistleblower Program, and the IRS Whistleblower Program.  These programs, along with a new one under the Anti-Money-Laundering Act of 2020, are open for business and promise to pay millions of dollars in whistleblower awards in exchange for information and assistance in exposing fraud....

COVID-19 Frauds of the Week: Fake Employees and Fake Treatments

Taxpayers, rightfully upset about large companies such as Shake Shack and Ruth’s Chris Steakhouse claiming large sums of Paycheck Protection Program money from the Small Business Administration, should consider shifting some of their ire to applicants posing as the original intended recipients—small businesses—who are getting in on the grift. And for fraudsters who prefer to market unproven products rather than fabricate employee headcounts and loan documentation, opportunities abound amidst the...