California Corporation Sentenced For Defrauding U.S. Customs
For Immediate Release
U.S. Attorney's Office, District of Massachusetts
BOSTON - All Fabrics, Incorporated, an importer based in California, was sentenced today for defrauding U.S. Customs to avoid paying duties on textile shipments.
All Fabrics, Incorporated, represented by its President, Ricky Chen, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years of probation, $148,506 in restitution and a fine of $180,000. In August of 2013, All Fabrics pleaded guilty to 10 counts of entering goods to the United States by means of false statements.
Between 2006 and 2009, All Fabrics provided false consolidated invoices to U.S. Customs for hundreds of shipments of cotton, polyester, and other textiles imported from China through ports on the eastern and western coasts of the United States. Based on these invoices, U.S. Customs imposed importation duties far lower than what was actually due. Losses to U.S. Customs were $468,506 in total, $320,000 of which the company paid when first confronted with evidence of wrongdoing.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Updated December 15, 2014