GMI, Belovefine Must Face Whistleblower’s Customs Fraud Suit

A whistleblower has adequately alleged that GMI USA Corp., Belovefine Ltd. and the companies’ owner violated the False Claims Act by engaging in a scheme to misrepresent tariffs classifications on imported footwear to the government, a federal district court said Friday.

Devin Taylor sufficiently raised a reverse false claim count by including in her complaint specific statements that mischaracterized footwear characteristics, such as stating that the footwear was mostly made of rubber of plastics when they were made of textile materials, Magistrate Judge Robert W. Lehrburger of the US District of for the Southern District of New York said.

The ...