Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that Fai Po Jewellery (H.K.) Co., LTD., a Hong Kong company, pleaded guilty in federal court in Anchorage to a one count Criminal Information charging Fai Po with Intentionally Defrauding the United States of Customs Duties.  The Criminal Information charged Fai Po with using fraudulent invoices to defraud United States Customs of $1,017,737 in duties.  Fai Po was sentenced at the same hearing.

Fai PO was sentenced by U.S. District Court Judge Sharon L. Gleason, to pay a criminal fine of $800,000, restitution in the amount of $1,017,737, and a special assessment of $400.00.  Fai Po was also ordered to pay the costs of the investigation in the amount of $144,324.34 and was placed on probation for a period of three years.  Under the terms of probation, Fai Po is required to appoint a Responsible Corporate Officer who will be required to prepare and submit quarterly reports to the United States Probation Office to assure that no similar conduct occurs in the future.

According to Assistant U.S. Attorney Daniel R. Cooper, Jr., Fai Po fraudulently avoided the full payment of U.S. Customs duties from March 16, 2007 through October 6, 2009, by using two invoices for each shipment of gold jewelry it sold to a customer in the United States.  The invoice with the true cost of the goods was sent to the U.S. purchaser for payment, and a fraudulent invoice which understated the value of the goods was sent with the goods for importation through Customs.  Duties were assessed and collected on the lower, fraudulent amount.  The fraudulent invoice scheme was discovered by Customs and Border Patrol Regulatory Audit Unit analysts.  Their review of itemized invoices submitted to customs discovered the discrepancy in valuation of gold jewelry items.

“A few deliberate pen strokes on a customs declaration form, amounted to the theft of over $1 million from the American people,” said Brad Bench, special agent in charge of HSI Seattle, who oversees investigations in Alaska. “The defendant apparently believed its actions would go unnoticed, but it didn’t count on U.S. Customs and Border Protection’s ability to detect this anomaly or HSI’s commitment to holding those who commit customs fraud accountable.”

Ms. Loeffler commends the U.S. Immigration and Customs Enforcement Homeland Security Investigations and U.S. Customs and Border Protection for the investigation of this case.

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