The Justice Department recently issued a memo detailing circumstances when its attorneys should seek dismissal of False Claims Act whistleblower lawsuits. In addition to the government’s ability to intervene on the whistleblower’s side in False Claims Act suits, the law also gives it the less commonly used ability to end cases, even without the whistleblower’s consent. According to the memo, dated Jan. 10, government lawyers should ask courts to dismiss False Claims Act suits in which the whistleblower’s claims are meritless or frivolous, or when the lawsuit is “parasitic or opportunistic” in that it duplicates an existing government investigation or the suit interferes with an agency’s policies or programs.
The following lawsuits were filed at the Court of International Trade during the week of Jan. 15-21:
A Virginia-based furniture importer has agreed to pay $10.5 million to settle a whistleblower’s claims that it made false statements on entry documentation in an attempt to evade antidumping duties, the Justice Department said in a Jan. 16 press release. Bassett Mirror Company allegedly misclassified its furniture as non-bedroom furniture, avoiding a 216% AD duty on wooden bedroom furniture from China. The settlement ends a False Claims Act case filed by Kelly Wells, an ecommerce furniture retailer, and subsequently joined by the government. Wells will receive $1.9 million, which comes on top of another $2.4 million Wells received in an associated whistleblower case against Z Gallerie in 2016 (see 1604270033).
The following lawsuits were filed at the Court of International Trade during the week of Jan. 8-14:
The following lawsuits were filed at the Court of International Trade during the week of Jan. 2-7:
The following lawsuits were filed at the Court of International Trade during the weeks of Dec. 18-31:
A recent Court of International Trade ruling on a Justice Department request for discovery regarding the involvement of company executives "should send a shiver of concern up the spine of corporate officers and compliance personnel," Barnes Richardson lawyer Lawrence Friedman said. The lawsuit involves Greenlight Organic and allegations that the company illegally misclassified and undervalued merchandise. Within that litigation, the government sought information on the personal finances and the role of two corporate principals that "appear directed at determining whether those individuals were responsible for the alleged fraud or negligence," Friedman said on his blog.
Pacific Eurotex, an "import-export textile business" in Los Angeles, and its two owners pleaded guilty to involvement in a money laundering scheme, the U.S. Attorney's Office for the Central District of California said in a Dec. 22 news release. The company and owners Morad and Hersel Neman entered a guilty plea to "federal charges in an indictment that accused them of using the business to receive bulk cash that they knew or believed to be the proceeds of narcotics trafficking," the Justice Department said. "The defendants admitted in court documents that they failed to report to federal authorities the receipt of this bulk cash, and that they 'structured' frequent deposits of the cash, in amounts less than $10,000, to avoid a bank reporting requirement that would have drawn the scrutiny of law enforcement." The owners also used two sets of business records to conceal income for tax purposes, it said.
The Bureau of Industry and Security is denying export privileges for four individuals for export control law violations, the agency said. BIS denied export privileges for Gerardo Trevino-Moncivais until Oct. 18, 2026, for "causing" the export of several guns and ammunition designated on the U.S. Munitions List (USML) from the U.S. to Mexico; Hunter Perry until July 20, 2021, for "exporting or causing to be exported" to the United Kingdom USML-designated articles including night vision devices and thermal scopes without the required State Department licenses; Joseph Esquiel-Gonzalez until Aug. 30, 2026, for exporting a USML-designated .380-caliber pistol without the required State license; and Papa Faal until May 12, 2026, for exporting semi-automatic rifles from the U.S. to The Gambia without required State Department licenses.
The Court of International Trade on Dec. 11 sustained a Commerce Department scope ruling that found curtain wall units imported separately by Yuanda for the same construction project are covered by antidumping and countervailing duties on aluminum extrusions from China (A-570-967/C-570-968). Capping a long-running case wherein Commerce at one point ruled the curtain wall units are exempt (see 1610110052), CIT held that curtain wall units may be subassemblies that are not subject to duties, but that Yuanda’s units need further fabrication before assembly, disqualifying them for the exemption. For example, hangers, lock panels, shims and embeds needed for the final curtain wall are not included on any invoice or entry forms, CIT said. With the issue of whether Yuanda’s curtain wall units are covered decided, CIT found it did not need to rule on whether the curtain wall unit exemption applies only to units imported as one customs entry, or whether the units can be imported in multiple entries for the same project over an extended period.