Involved in a double invoicing scheme to defraud the United States in customs duties, China-based clothing manufacturers – Motives Far East and Motives China Limited paid US $ 13.4 million under False Claims Act and accepted responsibility for under-reporting the value of its imported merchandise.
The clothier presented to the Government invoices that undervalued the garments and later found to be defrauding of millions of dollars in customs duties by hiding the invoice that reflected the ‘actual value’ of the garments.
“Motives evaded millions in customs duties by presenting false invoices to U.S. Customs and Border Protection. With this lawsuit and the accompanying resolution, which involves admissions and the payment of over US $ 13 million, Motives is being held to account for its unlawful evasion of customs duties,” said Manhattan US Attorney Preet Bharara.
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The allegations of fraud complaint were first brought to the attention of Federal Law Enforcement by a whistle-blower who filed a lawsuit against the company under the False Claims Act.
