South Korean Clothing Importer to Pay Over $2 Million to Settle FCA Claims on Duty Avoidance
South Korean company Anyclo International pleaded guilty to evading customs duties on clothing it imported, agreeing to a civil settlement with the U.S. under which it will pay $2.05 million to the U.S. in restitution, the U.S. Attorney's Office for the District of New Jersey announced. A $250,000 criminal fine also was levied. Anyclo will pay the settlement, plus interest, over 15 months to resolve potential charges under the False Claims Act.
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The company admitted that from 2012 to 2019, it evaded the customs duties on clothing by drawing up two invoices for the same entries: an accurate one and a false one. The accurate one was sent to U.S. buyers and the false one was forwarded to CBP, leading to undervalued imports. Whistleblower Yang Sup Cha will get 18% of the settlement amount recovered, the U.S. Attorney's Office said.