Clothing Importer, 2 Executives Found Guilty of Avoiding Duties
A jury found wholesale clothing importer C'est Toi Jeans and two of its executives guilty of avoiding over $8 million in customs duties on apparel entries, and laundering and failing to report over $17 million in proceeds from cash transactions, the U.S. Attorney's Office for the Central District of California announced. The two executives are Si Oh Rhew, president of the company, and his son, Lance Rhew.
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The company and the Rhews were each found guilty of falsely entering classified goods, entering goods by way of false statements and passing false papers through a customhouse, the U.S. Attorney's Office said. Si Oh Rhew and the company also were found guilty on two conspiracy counts and multiple counts of failure to report currency transactions over $10,000.
The three skirted customs duties by submitting false information to CBP that understated the true value of the goods. The result led to the company importing goods that were undervalued by over $51 million, causing around $8.4 million in unpaid duties, the U.S. Attorney's Office said. Sentencing will take place in January. The Rhews face "decades in federal prison," and the company could be hit with fines of up to $100 million, the release said.