Customs Fraud Scheme Reaches FCA Settlement
- September 06, 2011 by Qui Tam
- Federal False Claims Act, State False Claims Acts
A $3.85 million settlement involving a customs fraud scheme carried out by a Hong-Kong based jewelry manufacturer and its partners has recently been made public. Kirby McInerney LLP filed the action under the FCA on behalf of its client, a whistleblower who learned about the fraudulent conduct. The whistleblower will receive approximately 19% of the $3.85 million settlement.
Noble Jewelry Ltd., a global jewelry company based in Hong Kong, and certain New York affiliates, was accused of being involved in a scheme in regards to submitting false customs declarations and false invoices on shipments. The Manhattan U.S. Attorney’s Office and the Office of U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations performed a thorough investigation of the whistleblower’s complaint. Then the United States filed its own civil complaint and entered into a settlement with the defendants requiring them to pay $3.85 million plus interest in damages and penalties under the False Claims Act.