October 3, 2017
Pennsylvania garment wholesaler Notations, Inc.
agreed to pay $1 million
to settle charges of violating the False Claims Act by repeatedly ignoring warning signs that its business partners, Yingshun Garments Inc.
, Import Global Designs Inc.
, and Olgrem LLC
, which imported garments from China, were engaged in a fraudulent double-invoicing scheme to underpay customs duties owed on the imported garments they sold to Notations. The allegations originated in a whistleblower lawsuit filed under the qui tam
provisions of the False Claims Act. The whistleblower, Xing Wei
, will receive an award from the proceeds of the government's recovery. DOJ (SDNY)