Swimwear Company, Whistleblower Settle Customs Duties Fraud Case

Swimwear retailer KAP7 International Inc. and its president agreed to a $300,000 settlement that will end a whistleblower’s False Claims Act suit alleging customs duties fraud, according to a Tuesday press release.

The defendants and whistleblower Patricia Robertson submitted a stipulation of dismissal with the US District Court for the Central District of California on Tuesday. The US government consented to the dismissal.

Robertson said KAP7 evaded US customs on swimwear and water polo equipment manufactured by Crotton SA in Spain, the press release said.

According to the complaint, the companies engaged in an invoicing scheme that prevented US ...