Thread: Investigation nets 700 million in smuggled merchandise

Investigation nets 700 million in smuggled merchandise The federal government has charged 29 individuals involved in three separate schemes with conspiracy to smuggle more than 950 shipments of real and counterfeit merchandise into the U.S., mostly from China.

The investigation included smuggled goods at ports in Newark, N.J.; Houston; Long Beach, CA; Staten Island, NY; and at John F. Kennedy International Airport.

The charges come in the wake of growing concerns about Chinese imports of legal products into the United States, including toothpaste, dog food and auto tires.

In the first scheme, merchandise distributors allegedly smuggled seven 40-foot shipping containers with counterfeit goods valued at $9 million through the Ports of Los Angeles and Long Beach without paying customs duties between November 2005 and March 2006.

The individuals allegedly paid Immigration and Customs Enforcement agents to file false paperwork showing the containers to be passing through the U.S. en route to Mexico, when in fact the containers were delivered to U.S.-based warehouses controlled by Longyi Wang, Amine Mohsen and Ayman Mohsen.

The second scheme included Wang, the Mohsens and others allegedly smuggling about 22 containers with an estimated $25 million in counterfeit merchandise into the country by allegedly lying to Customs and Border Patrol agents about the contents and value of the containers, and by bribing ICE undercover agents to release the merchandise from the CBP’s control. Investigators seized more than $38 million of additional counterfeit merchandise.

The 17-month investigation would have netted $700 million in smuggled goods had all goods been authentic, the release read.

In another scheme that occurred between June 2005 and February 2007, trucking company operators Ronald Depaola and Joseph Depaola conspired with freight forwarders to file fraudulent shipping documents to customs brokers to import merchandise through customs.

The forms “falsely represented the nature and value of the merchandise and falsely identified the importers, frequently listing the name and identity of legitimate importers known to CBP,â€

Another obstable to overcome in establishing port and border security... corruption of those tasked to carry out our security missions. This is very worrisome.