DOJ Continues Full Court Press Against Customs Fraud and For Whistleblowers to Help the Charge

By the Constantine Cannon Whistleblower Team On July 14, the Department of Justice (DOJ) announced it had crossed the $1 billion threshold in civil and criminal customs fraud recoveries since launching its Trade Fraud Task Force last August.[1]  DOJ described it as a major milestone that “reflects a fundamental shift in the federal government’s approach to customs and trade enforcement, emphasizing rigorous criminal prosecution and civil enforcement under the False...

Redi-Bag Pays $7.3M in Latest Whistleblower-Originated Customs Fraud Case

By the Constantine Cannon Whistleblower Team Last Wednesday (July 15), the Department of Justice (DOJ) announced that Redi-Bag USA and its CEO, Jeffrey Rabiea, agreed to pay $7.3 million to settle allegations they violated the False Claims Act by engaging in customs fraud.[1]  Specifically, DOJ claimed the New York-based supplier of custom bags, liners, and packaging misrepresented to Customs and Border Protection (CBP) the country of origin of its imported...

And Yet Another Customs Fraud Settlement -- Two Canadian Steel Companies Pay $19M to Settle False Claims Act Allegations

By the Constantine Cannon Whistleblower Team Last Wednesday (May 20), the Department of Justice (DOJ) announced that two Canadian steel companies -- Farjess Inc. and Royal Canadian Steel Inc. -- and their owner Feroz Jessani agreed to pay $19 million to settle allegations they violated the False Claims Act by failing to pay customs duties owed on flat-rolled steel that was manufactured in Europe and Asia.[1] It comes just a...

Perfectus Aluminum to Pay Whopping $549.5M False Claims Act Settlement, Largest Customs Fraud Settlement Ever

By the Constantine Cannon Whistleblower Team On May 12, the Department of Justice (DOJ) announced that California-based Perfectus Aluminum and four affiliated warehousing companies agreed to pay $549.5 million to settle allegations they violated the False Claims Act by evading antidumping and countervailing duties owed on aluminum extrusions imported from China.[1]  It is the largest customs fraud False Claims Act settlement ever, and far exceeds the prior record amount of $54.4 million that Ceratizit...

And Yet Another Whistleblower-Originated Customs Fraud Case -- Ceratizit Pays $54.4M in Largest-Ever False Claims Act Settlement

By the Constantine Cannon Whistleblower Team Last Thursday (December 18), the Department of Justice (DOJ) announced that North Carolina-based Ceratizit USA agreed to pay $54.4 million to settle allegations it violated the False Claims Act by failing to pay duties it owed Customs and Border Protection (CBP) on the products it imported from China.[1]  It is just the latest in a string of customs fraud settlements this year, but the...

Harman International Pays $11.8M for Evading Customs Duties -- DOJ's Latest False Claims Act Customs Fraud Settlement

By the Constantine Cannon Whistleblower Team Last Wednesday (November 26), the Department of Justice (DOJ) announced Harman International Industries, Inc. -- a leading audio electronics company for automakers -- agreed to pay roughly $11.8 million to settle allegations it violated the False Claims Act by evading antidumping and countervailing duties on aluminum goods from China.[1]  It is just the latest in a string of customs fraud cases the DOJ has...

DOJ Triples Down on Crusade Against Customs Fraud -- Calling All Whistleblowers

By the Constantine Cannon Whistleblower Team DOJ Launches Cross-Agency Task Force with DHS Last Friday (August 29), the Department of Justice (DOJ) launched what it describes as “a cross-agency Trade Fraud Task Force to bring robust enforcement against importers and other parties who seek to defraud the United States.”1 More specifically, DOJ is partnering with the Department of Homeland Security (DHS) to “aggressively pursue” evading tariffs and other customs duties, and...

DOJ Continues Crusade Against Customs Fraud With $12.4M False Claims Act Settlement Against Allied Stone

By the Constantine Cannon Whistleblower Team The Latest Customs Fraud False Claims Act Case Last Tuesday (August 19), Dallas-based countertop and cabinetry supplier Allied Stone Inc. (and its president Jia Lim) agreed to pay $12.4 million to settle Department of Justice (DOJ) charges of violating the False Claims Act by evading customs duties on quartz surface products from China.1 It is just the latest in a recent string of customs...

DOJ Settles Two False Claims Act Customs Cases, Reinforcing That Customs Fraud Remains a Top Enforcement Priority

By the Constantine Cannon Whistleblower Team Last week, the Department of Justice (DOJ) announced the settlement of two False Claims Act cases involving customs fraud. DOJ Goes After Intentional Avoidance of Customs, Antidumping, and Countervailing Duties On July 23, MGI International subsidiaries Global Plastics and Marco Polo International agreed to pay $6.8 million to settle DOJ charges that they failed to pay customs duties on plastic resin imported from China. 1 ...

Customs Fraud

Blowing the Whistle on Customs Fraud and International Trade Violations Customs fraud exposes U.S. companies to unfair competition and deprives the government of significant revenue. The federal government has made customs fraud an enforcement priority, but such fraud can be very hard to catch without information from insiders and others with knowledge of customs fraud schemes. Anyone, anywhere in the world, with information about customs fraud can blow the whistle...