Newark, New Jersey – Anyclo International Inc. (Anyclo), a South Korean company, has pleaded guilty to evading customs duties on clothing imported into the United States, according to an announcement by U.S. Attorney Philip R. Sellinger. The plea was made before U.S. District Judge Esther Salas in Newark federal court. Anyclo has been sentenced to pay a criminal fine of $250,000 and restitution of $2.05 million to the United States.
The guilty plea stems from Anyclo’s admission that it evaded customs duties on clothing and apparel it manufactured abroad and imported into the United States between October 5, 2012, and August 5, 2019. The company employed a deceptive scheme involving two invoices for the same shipments. An accurate invoice was provided to U.S. purchasers, while a false invoice, undervaluing the goods, was submitted to U.S. Customs. By intentionally undervaluing its merchandise, Anyclo significantly underpaid customs duties owed based on the actual value of the goods.
To settle its potential liability under the False Claims Act, Anyclo has also agreed to a civil settlement with the United States. The settlement requires the company to pay $2.05 million, plus interest, over a period of 15 months. This resolution includes a lawsuit filed under the whistleblower provision of the False Claims Act, allowing private parties to sue on behalf of the United States for false claims and receive a portion of the government’s recovery. Yang Sup Cha, the relator in this case, will receive 18 percent of the civil settlement amount recovered by the United States.
U.S. Attorney Sellinger acknowledged the efforts of special agents from the Department of Homeland Security, Homeland Security Investigations, led by Special Agent in Charge Ricky J. Patel in Newark. He also recognized the contributions of the members of the Office of Trade, Regulatory Audit & Agency Advisory Services, supervised by Acting Field Director of the New York Office Teresa Halpin, for their role in the investigation leading to the guilty plea and civil settlement.