Thread: CBP, ICE team on electronic fraud tip

CBP, ICE team on electronic fraud tip

Fri, 2011-06-17
By: Mark Rockwell

Customs and immigration agents, tipped by an online complaint, derailed an illegal shipping scheme by a Mexican businessman to get around U.S. antidumping laws.

Analysts at the U.S. Customs and Border Protection’s (CBP) trade fraud targeting unit, received a complaint filed through its online trade violation reporting system e-Allegations, about a transshipment plan by Arturo Huizar-Velazquez, 49, of Tijuana, Mexico aimed at avoiding paying anti-dumping duties on imported steel-wire hangers. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) investigated the case.

The CBP e-Allegations tip ultimately resulted in Huizar-Velazquez being sentenced to 70 months in federal prison and ordered to pay more than $3 million in restitution to the U.S. Government, along with the forfeiture of more than $4 million in proceeds from the illegal transshipment scheme, said CBP.

One of Huizar-Velazquez’ employees, Jesus De La Torre-Escobar, 31, pleaded guilty in January to one criminal count for making false statements to import goods. Torre-Escobar, said ICE, admitted to having falsely told CBP officers the garment hangers were manufactured in Mexico. De La Torre-Escobar was sentenced to 365 days of time served in May and ordered to pay restitution of more than $3 million to the U.S. government.

CBP’s targeting unit, which specializes in the detection of evasion of antidumping and countervailing duty laws, identified the transshipment scheme in December 2009 after analyzing a commercial allegation. Analysts pursued the lead, piecing together information about a Mexican manufacturer who appeared to be involved in the alleged illegal scheme, said the agency.

At the time of his guilty plea, Huizar-Valazquez, who owns Proveedoras de Limpiaduria de Tijuana and Huizar Cleaner de Mexico, admitted to purchasing steel wire garment hangers from Chinese companies and shipping them to the U.S. without marking their country of origin. After the hangers arrived in Long Beach, CA, according to ICE HSI. Huizar-Valazquez arranged for the hangers to be shipped to Tijuana, Mexico, where they were falsely labeled as "Made in Mexico.â€

Analysts at the U.S. Customs and Border Protection’s (CBP) trade fraud targeting unit, received a complaint filed through its online trade violation reporting system e-Allegations

E-ALLIGATIONS
Online Trade Violation Reporting System
https://apps.cbp.gov/eallegations/allegations.asp