A California federal judge on March 26 awarded victory to an importer in a False Claims Act lawsuit that alleged it sold improperly sourced goods to the federal government. Judge William Alsup of the U.S. District Court for the Northern District of California found Matthew MacDowell -- the whistleblower with alleged information that the company violated the FCA -- did not have direct knowledge of wrongdoing.
Florida-based construction materials manufacturer Gardner-Gibson agreed to pay a $160,933 settlement to resolve allegations of customs laws violations, the Department of Justice said Jan. 20. Gardner-Gibson, which makes and imports products related to residential and commercial construction, allegedly imported a roofing underlayment product made in China without the proper country of origin labels. An individual brought the charges against Gardner-Gibson under the False Claims Act and said the company knowingly failed to apply country of origin markings on its imports in an effort to evade customs duties. The relator will receive 20% of the $160,933 payment, and Gardner-Gibson will also pay the relator's attorney fees of more than $40,000, DOJ said. “It is important that all U.S. businesses have a fair playing field,” said U.S. Attorney Brian Moran. “This case began with a relator alerting the government to the unlawful conduct, helping the government police the import marketplace to ensure fairness.” The settlement resolves allegations and there was no determination of liability, DOJ said.
Ramped up import enforcement efforts are likely here to stay under President Joe Biden, Sidley Austin's Ted Murphy said in an email. The multi-agency effort to crack down on import violations is expected to continue unencumbered and Murphy views these efforts as not administration-specific, particularly dealing with questions of forced labor, Section 301 tariff evasion and USMCA compliance.
International Trade Today is providing readers with the top stories from Dec. 28-31 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The owner and CEO of a New York-based apparel company will spend six months in prison for submitting false invoices to CBP as part of a scheme to underpay duties, the Justice Department said in a Dec. 22 news release. Joseph Bailey of Brooklyn, New York, was sentenced by a judge in Southern New York U.S. District Court after having pleaded guilty in January 2020 to wire fraud and entry of falsely valued goods.
International Trade Today is providing readers with the top stories from Dec. 7-11 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Four additional jewelry importers will pay more than $860,000 to settle a whistleblower lawsuit over allegations of misclassification and underpayment of duties, the Department of Justice said in a Dec. 10 news release. Roman & Sunstone, iStar Jewelry, Ansun and Starkes Gems, four related companies based in New Jersey, classified earrings based on the value of pairs or larger groups, instead of the value of single earrings, claiming a lower duty rate than they should have paid had they been correctly classifying the imports, DOJ said.
A former jewelry importer will pay more than $400,000 to settle a False Claims Act whistleblower lawsuit that alleges it intentionally misclassified imported earrings to avoid paying higher customs duties, the Justice Department said in a Dec. 8 news release. A TSI Accessories Group subsidiary allegedly classified the earrings based on the value of pairs or larger groups, when they should have been classified based on the value of each single earring, said the whistleblower complaint, subsequently joined by the Justice Department.
International Trade Today is providing readers with the top stories from Sept. 28-Oct. 2 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
A multinational engineering company will pay more than $22.2 million to resolve a False Claims Act whistleblower lawsuit related to the evasion of customs and antidumping and countervailing duties. Germany-based Linde GmbH and its U.S. affiliate, Linde Engineering North America, allegedly misrepresented the nature, classification, and valuation of imported merchandise, as well as the applicability of free trade agreements, so as not to pay tariffs, the Department of Justice said in a Sept. 25 news release.