New York-based apparel companies Stargate Apparel Inc. and Rivstar Apparel Inc. and the companies’ former CEO and owner will pay $6 million to settle claims that they violated the False Claims Act by misrepresenting the value of imported clothing to evade paying customs duties.
Joseph Bailey will pay $3.2 million, and Stargate, Rivstar, and the employee stock ownership plan that owns the companies will pay $2.8 million, Audrey Strauss, U.S. Attorney for the Southern District of New York, announced Wednesday.
The defendants engaged in “double invoicing” schemes under which they misled U.S. Customs and Border Protection as to how much ...
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