CHARLESTON, S.C. — The U.S. Department of Justice has filed a civil complaint against Global Office Furniture, LLC (GOF) and its owner, Malcom E. Smith, alleging that the Myrtle Beach-based company defrauded the federal government by underpaying customs duties on imported office chairs from China.
Federal prosecutors claim that from 2019 to 2023, GOF and Smith conspired with a Chinese manufacturer to submit false invoices and undervalued entry summaries to U.S. Customs and Border Protection (CBP), thereby reducing the amount of customs duties owed.
According to the complaint, the defendants used a double-invoicing scheme to report lower values on imported office furniture, while concealing the actual purchase prices. The underreported values led to decreased duty payments on merchandise shipped from the People’s Republic of China.
The United States also alleges that after learning of the federal investigation, GOF and Smith took steps to destroy evidence related to the scheme.
The case, United States ex rel. Joyce v. Global Office Furniture, LLC, et al., is being prosecuted under the False Claims Act. Assistant U.S. Attorneys Austin McCullough and James Leventis are leading the case, with investigative support from CBP and Homeland Security Investigations.
A South Carolina office furniture importer is accused of falsifying invoices to dodge customs duties and later trying to destroy evidence of the scheme.
