The Department of Justice is increasingly using the False Claims Act to pursue alleged customs fraud involving underpayment or evasion of duties. These actions generally rely on the FCA’s “reverse false claims” provision, which imposes FCA liability for concealing, avoiding, or decreasing obligations to pay the Government or creating false records that are material to an obligation to pay the Government. This uptick in enforcement is consistent with President Trump’s strong suggestion that his administration would use FCA actions to ferret out fraud, waste, and abuse in Government programs like Medicare and Medicaid.
A few weeks ago, the DOJ announced an FCA complaint against Barco Uniforms Inc. and several related entities and individuals, alleging underpayment of customs duties. See DOJ press release announcing complaint against Barco Uniforms; United States ex rel. Lee v. Barco Uniforms Inc., et al., No. 2:16-cv-1805 (E.D. Cal.). The defendants allegedly “undervalu[ed] imported garments” by using a double-invoicing...
Recently appointed Florida A&M Vice President and Director of Athletics Angela Suggs has been arrested and charged with grand theft and scheme to defraud and four misdemeanor counts of false cl...