False Claims Act

ICYMI: U.S. & Chinese Companies Fined $2.5 Million for Underpaying Customs Duties, Whistleblowers to Receive $500,000

Earlier this month, the U.S. Attorney for the Northern District of Texas announced that a Dallas-based importer, two individuals, and two Chinese companies agreed to pay $2.5 million to resolve allegations that they failed to pay customs duties on imports.

Underpaying Through Duplicate Invoices

ADCO, a Dallas-based importer of industrial products, the company owner Raymond E. Davis, customs broker Calvin Chang, and Chinese companies Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co., Ltd conspired to underreport the value of goods they were importing.

The scheme involved falsifying invoices with low values for goods ADCO was importing from China. The company used a separate set of invoices that contained the correct value of goods to ensure that ADCO paid its suppliers the actual value of the goods.

In investigating the scheme, the U.S. Attorney’s Office and CBP’s Consumer Products and Mass Merchandising Center of Excellence and Expertise reviewed over 1,000 import entry lines.

Qui Tam Lawsuit

The settlement with the government resolved a “qui tam” lawsuit filed under the False Claims Act (FCA). A qui tam lawsuit is one that is brought by a private citizen or company against a defendant or defendants that owe money to the government.

When a qui tam lawsuit is successful, the party that initiated the case—called a “relator”—is entitled to a substantial monetary reward, ranging between 15% and 30% of the amount recovered for the government.  A qui tam lawsuit also engages the U.S. Department of Justice (“DOJ”) in the case, and typically results in the opening of […]

Are YOU on the List?

On May 31, CBP announced it will be giving away money! There is an application process, and only certain companies are qualified to request it. Read on to see if it’s YOU!

HAVE YOU Been Affected by The Continuance of Anti-Dumping and Subsidy Offset?

The list of domestic producers that have been personally affected were sent to the U.S International Trade Commission (USITC) and can be found on the federal register as well. The list indicates who is potentially eligible to receive an offset.

However, although your name may not be on the list, it does not necessarily mean that your company has not been affected. Any individual or company who may have purchased any portion of the operating assets of an affected domestic producer, a successor to an affected domestic producer, or an entity that otherwise previously received distribution may be jointly and severally liable for the return of any over payments. Therefore, for domestic producers who are not on the USITC list but believe they are eligible for a CDSOA distribution under one or more anti-dumping and/or countervailing duty cases are required, as are all potential claimants that expressly appear on the list, to properly file their certifications within 60 days after May 31, 2018. Certifications that are not filed within 60 days and/or fail to sufficiently establish a basis for eligibility will be summarily denied. […]

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