Chinese Manufacturer, 3 US Firms Settle False Claims Charges on Duty Avoidance Scheme
One Chinese company and three companies based in New Jersey and New York settled charges with the U.S. related to a customs avoidance scheme, the U.S. Attorney's Office for the District of New Jersey announced. The companies agreed to pay fines ranging from $5,000 to $500,000 to settle violations relating to the False Claims Act, "among other statutes."
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The U.S. Attorney's Office said that from July 2015 to October 2020, New Jersey-based United Silica Products bought merchandise made by Noble Brand Holdings in China. Following the purchase of the goods, Noble created two sets of invoices, "one that showed the amount actually paid by USP and another, false invoice, that undervalued the products sold to USP."
The Chinese manufacturer gave USP the invoices with the amount actually paid, then sent the false invoices to New York-based freight forwarding firm Argos Express, which then gave them to USP's New York customs broker United Way International to make the customs declarations. Charges were brought against the four companies, leading to the settlement agreements.
Under the deals, Noble will pay $500,000; USP and its owner, Lynnmarie Boccuzzo, will pay $20,000 and $5,000, respectively; and Argos and United Way will each pay $15,000.