The agency claimed in a news release that U.S. Customs and Border Protection (CBP) received falsified invoices for goods that ADOC was importing.
DALLAS – Federal authorities have fined a Dallas import company and two Chinese companies $2.5 million for allegedly failing to pay customs duties, authorities announced Tuesday.
The settlement, announced by the U.S. Attorney's Office for the Northern District of Texas, also names Dallas-based ADCO owner Raymond E. Davis and customs broker Calvin Chan.
The two Chinese companies involved in this incident are Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co., Ltd.
The agency claimed in a news release that U.S. Customs and Border Protection (CBP) received falsified invoices that undervalued goods that ADCO was importing from China. Prosecutors argued that a series of correct invoices were also produced but not submitted to CBP to confirm that ADCO paid the Chinese company “the actual value of the goods.”
When the products arrived in the U.S., they were undervalued due to false invoices, resulting in reduced duties and fees and reduced revenue, according to the release.
“Tariff law is an important element of national security, specifically protecting the public and American businesses from unfair competition,” U.S. Attorney Riga Simonton said in a statement. “Our office will continue to aggressively investigate and hold accountable those who appear to have attempted to defraud the government and the public through customs duty manipulation.”
The case arose from a lawsuit brought under the whistleblower provisions of the False Claims Act, which allows the government to pay whistleblowers a portion of the money it ultimately recovers, the release said. There is. Officials said whistleblowers Donald Reznicek and Collen McFarland will receive $500,000 in stock as part of the settlement.
