Customs Fraud

January 16, 2018

Virginia-based home furnishings company Bassett Mirror Company agreed to pay $10.5 million to resolve allegations it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from China. According to the government, Bassett Mirror evaded antidumping duties owed on wooden bedroom furniture imported from China by misclassifying the furniture as non-bedroom furniture which at the time of the alleged conduct was not subject to an antidumping duty. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Kelly Wells, an Alabama merchant who sells furniture on line. Ms. Wells will receive a whistleblower award of roughly $1.9 million from the proceeds of the government's recovery. DOJ

January 11, 2018

Textile importer American Dawn, Inc. and its executives Habib Rawjee, Mahmud Rawjee, and Adnan Rawjee, agreed to pay roughly $2.3 million to resolve allegations of violating the False Claims Act by intentionally misclassifying certain textiles such as bath and shop towels imported into the United States in order to pay lower tariff rates. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a former employee of American Dawn. The whistleblower will receive an award of roughly $400,000 from the proceeds of the government's recovery. DOJ (NDGA)

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)

September 8, 2017

U.S. Government Joins Case Brought By U.K. Whistleblower against British Retailer for Customs Fraud. Click here to read the Press Release.

May 1, 2017

Texas-based importer Import Merchandising Concepts L.P. agreed to pay $275,000 to resolve allegations it improperly evaded customs duties on imports of wooden bedroom furniture from China by misclassifying the furniture as non-bedroom furniture, which is not subject to any antidumping duties. DOJ

January 11, 2017

Volkswagen AG agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s long-running scheme to sell approximately 590,000 diesel vehicles in the U.S. by using a defeat device to cheat on emissions tests mandated by the Environmental Protection Agency and California Air Resources Board, and lying and obstructing justice to further the scheme. In separate civil resolutions of environmental, customs and financial claims, VW also agreed to pay $1.5 billion for a total payout of $4.3 billion in criminal and civil penalties. DOJ