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22h ago

DOJ’s Market, Government and Consumer Fraud Unit Files First False Claims Act Cases Over Tariff Evasion

Prompt self-disclosure offers companies reduced penalties with the Justice Department’s new fraud unit enforcing tariffs under the False Claims Act.

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Overview

  • The DOJ combined civil and criminal divisions into the new Market, Government and Consumer Fraud Unit to sharpen its customs-fraud enforcement.
  • The unit has brought its first False Claims Act complaint against Global Office Furniture for a multimillion-dollar double-invoicing scheme that evaded at least $2 million in duties.
  • The department secured a $6.8 million settlement with MGI International subsidiaries Global Plastics LLC and Marco Polo International LLC for underpaying tariffs on plastic resin imports from China.
  • MGCF is partnering with the Department of Homeland Security and U.S. Customs and Border Protection to crack down on misclassification, undervaluation, country-of-origin misrepresentation and transshipment schemes under the expanded tariff regime.
  • DOJ officials say prompt self-disclosure, full cooperation and remedial action can substantially reduce penalties in ensuing False Claims Act proceedings.