Customs Broker Charged With Defrauding Clients Out of $2M While on Release in Prior Fraud Case
Frank Seung Noah, a California man working as a customs broker, was arrested on charges that he "defrauded clients out of $2 million" while free on bond from separate charges alleging he defrauded a different client out of $3.4 million, the U.S. Attorney's Office for the Central District of California announced. Noah, who was arrested Oct. 5, has been indicted on eight counts, pleading not guilty to each.
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If found guilty on all charges, Noah faces a maximum of five years in prison for tax evasion and 20 years for each wire fraud count.
Noah owned and operated logistics company Comis International, which provided customs brokerage services. From 2007 to 2019, the company served as broker for Japan-based variety store Daiso. During that period, Noah paid customs duties on Daiso's behalf, then sent invoices to Daiso that inflated the amount he paid to CBP.
In February 2022, Noah was charged with stealing nearly $3.4 million from the company, the U.S. Attorney's Office said. He also was charged in that indictment with evading $1.5 million in personal income taxes.
From late 2021 until June this year, Noah, while free on bond, "defrauded two other client companies by invoicing and receiving funds" from two companies, this time pocketing the money instead of paying customs duties to CBP, the U.S. alleged. He then sent the companies false bank statements showing that CBP was paid after the firms became suspicious, DOJ alleged.
Noah is free on bond for the present case, though the U.S. District Court for the Central District of California added "strict pretrial supervision conditions, including home detention," a deal that he would no longer conduct customs brokerage services and a near ban on his use of and access to email and the internet.