Whistleblower Must Prove Chinese Herb Importer Liable at Trial

A whistleblower will have to prove at trial that a New Jersey-based herbal extract manufacturer is liable under the False Claims Act for defrauding U.S. Customs and Border Protection in a scheme to underpay duties on Chinese imports.

Travis Kiro failed to show Jiaherb Inc. and its Chinese parent company, Shaanxi Jiahe Phytochem Co., Ltd., knowingly and intentionally placed false labels on imported goods, or undervalued those goods, to avoid duties, Judge Ronald S.W. Lew of the U.S. District Court for the Central District of California said.

Kiro didn’t raise sufficient evidence to refute Jiaherb’s claims that mistakes or damage ...