In today’s protectionist environment, importers are facing heightened legal risks and a potential False Claims Act (“FCA”) violation when providing information to Customs and Border Patrol (“CBP”).  Earlier this month, the United States Attorney’s Office for the Southern District of New York filed a civil fraud lawsuit against Manhattan-based children’s apparel companies Stargate Apparel, Inc. (“Stargate”), Rivstar Apparel, Inc. (“Rivstar”), and their CEO, Joseph Bailey.  The Complaint, filed under seal, had alleged that Bailey, Rivstar,…

Webinar – Tuesday, June 11, 2019 12:00 – 1:00 pm EDT In recent years, there has been a steady rise in the number of lawsuits brought under the False Claims Act (FCA) alleging that importers have concealed obligations to pay duties to U.S. Customs and Border Protection. The increase in the number of qui tam suits filed by whistleblowers, combined with the current administration’s protectionist policies, suggests that U.S. importers could face increased FCA risks…

  <!– [/NewsEvents/AlertsNewsletters/all] [Department-of-Justice-Releases-Long-Awaited-Guidance-on-FCA-Cooperation-Credit] –>On May 6, 2019, the Department of Justice (DOJ) announced the release of formal guidelines for cooperation credit in False Claims Act (FCA) cases. While the guidelines do not quantify the credit that companies can receive, they do identify steps that companies can take to earn credit. The guidelines identify remedial measures and forms of cooperation that have long been recognized as best practices by FCA practitioners, and bear some resemblance…

The U.S. Department of Justice recently intervened in United States ex rel Vale v. Selective Marketplace Ltd., a False Claims Act (FCA) suit brought against a clothing importer for allegedly evading customs duties. United States ex rel Vale v. Selective Marketplace, 2:17-cv-00380, Dkt. 28 (D. Me. March 27, 2019). This lawsuit is just the latest example in a growing number of FCA actions brought against importers for allegedly concealing obligations to pay duties to U.S.…