US Declines to Criminally Prosecute Plastic Resin Co. for Trade Fraud, COO Pleads Guilty
The U.S. declined to prosecute a criminal trade fraud case against global plastic resin distributor MGI International and its subsidiaries Global Plastics and Marco Polo International, DOJ announced on Dec. 18. The agency agreed to credit a $6.8 million payment made by MGI to settle a civil case against the company for knowingly failing to pay customs duties on plastic resin entries from China in its decision not to proceed with a criminal investigation for the same conduct.
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However, on Dec. 17, MGI's former chief operating officer, David Guimond, was charged with and pleaded guilty to conspiracy to smuggle goods into the U.S. Guimond "instructed subordinates to misrepresent the manufacturer and country of origin on paperwork that was submitted to" CBP to avoid paying Section 301 duties on China. He faces a maximum penalty of five years in prison.
In July, DOJ announced MGI's $6.8 million settlement payment to resolve the government's False Claims Act case against the company and its subsidiaries (see 2507280010).
In 2024, MGI and its subsidiaries told CBP and the U.S. Attorney's Office for the District of New Hampshire that Global Plastics and Marco Polo failed to properly declare the country of origin and value of certain plastic resin entries made in China starting in 2019. DOJ said that MGI continued to cooperate with the government's investigation by self-disclosing potential FCA violations, performing a "thorough and independent internal investigation," preserving and disclosing relevant facts not known by the government and "implementing appropriate remedial actions."
The remedial actions taken by MGI included "disciplining personnel and making improvements to compliance procedures."