DALLAS — Federal authorities are fining a Dallas importing company and two Chinese companies $2.5 million over allegations they didn't pay customs duties, officials announced Tuesday.
Dallas-based ADCO's owner, Raymond E. Davis, and customs broker Calvin Chang were also named in the settlement, which was announced by the U.S. Attorney's Office for the Northern District of Texas.
Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co, Ltd., were the two Chinese companies involved in the case.
Authorities in a news release alleged that U.S. Customs and Border Protection (CBP) received falsified invoices that had lower values for the goods that ADCO was importing from China. Prosecutors alleged that a set of correct invoices was also created - but not submitted to the CBP - to make sure ADCO paid the Chinese companies "for the actual value of the goods."
When the goods arrived in the U.S., they were undervalued because of the false invoicing, resulting in a loss of revenue through less customs duties and fees, the release said.
“Customs laws are an important component of national security and, among other things, protect the public and American businesses from unfair competition,” U.S. Attorney Leigha Simonton said in the release. “This office will continue to aggressively investigate and hold accountable anyone it believes has tried to cheat the government and the public at large through the manipulation of customs duties.”
The case stemmed from a lawsuit filed under a whistleblower provision to the False Claims Act that allows for whistleblowers to be paid a share of what the government ultimately recovers, the release said. Officials said the whistleblowers, Donald Reznicek and Collen McFarland, will received a $500,000 share as part of the settlement.
