Analysts at the CBP unit responded to a complaint filed through e-Allegations, CBP's online trade violation reporting system. The hangers were shipped from China to the United States, sent to Mexico, and then imported back into the United States as products of Mexico.
The e-Allegations filing resulted in the sentencing of a Tijuana, Mexico, businessman to nearly six years in federal prison, and an order to pay more than $3 million in restitution to the U.S. government and forfeiture of more than $4 million in proceeds gained through the illegal transshipment scheme.
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CBP targeting analysts requested enforcement action by the port of Otay Mesa on the California border. Port officials and CBP import specialists then worked with U.S. Immigration and Customs Enforcement and the Justice Department to build the case for prosecution.
The 55-count indictment in the Southern District of California was for violations of 18 USC 371 (conspiracy), 18 USC 542 (entry of goods by means of false statements), 18 USC 1001 (false statements), 18 USC 1343 (wire fraud), and 18 USC 1956 (money laundering).
More information on this case can be found here and here.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
