Last month, we wrote about the Trump Administration’s focus on tariffs and predicted that it would result in an increase in customs fraud cases.
On March 25, the DOJ announced that a California-based importer of wood flooring and its owners agreed to pay $8.1 million to resolve allegations that they violated the False Claims Act by knowingly evading customs duties on imports of certain wood flooring products from China. According to the DOJ’s press release, the defendants knowingly evaded customs duties by intentionally misidentifying the manufacturers and country or origin of the imported products. The settlement was the result of a qui tam whistleblower lawsuit, brought in the name of “Urban Global LLC.” As part of the settlement, the whistleblower will receive over $1.2 million.
In announcing the settlement, Acting Assistant Attorney General Yaakov Roth stated: “Import duties provide an important source of government revenue and level the playing field for U.S. manufacturers against their global competitors. The department will pursue those who seek an unfair advantage in U.S. markets, including by evading the duties owed on goods imported into this country from China.”
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The attorneys at Chilivis Grubman represent businesses and individuals in connection with False Claims Act investigations and litigation. If you need assistance with such a matter, contact us today.
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