ARTICLE
26 March 2024

Clothing Wholesaler Executive Avoids Paying Millions In Duties – Sentenced To 4 Years In Prison

DT
Diaz Trade Law
Contributor
A boutique law firm with a track record of success, Diaz Trade Law has rapidly become one of the nation’s leading Customs and International Trade Law firms. Diaz Trade Law’s diverse team of attorneys specialize in all aspects of U.S. federal trade law, from compliance to resolution of urgent issues.
Mohamed Daoud Ghacham, a 40-year-old executive from California has been sentenced to 48-months in prison for customs fraud.
United States Criminal Law
To print this article, all you need is to be registered or login on Mondaq.com.

Mohamed Daoud Ghacham, a 40-year-old executive from California has been sentenced to 48-months in prison for customs fraud. Ghacham, who was at the helm of a Paramount-based clothing wholesale company, engaged in a deceitful scheme that allowed his business to sidestep paying millions in customs duties on imported garments.

United States District Judge Maame Ewusi-Mensah Frimpong handed down the sentence, which also includes a restitution payment of $6,390,781.

The fraudulent operation involved importing clothing from China and presenting U.S. Customs and Border Protection (CBP) with a fraudulent second invoice with a lowered value. At Ghacham's direction, Chinese suppliers would prepare two invoices for orders – a true invoice with the actual price paid and a fraudulent invoice with an understated price. Ghacham submitted the false invoices to CBP, allowing them to avoid millions of dollars in duties for over a decade.

Ghacham also faced charges related to conspiring to engage in transactions with a known narcotics trafficker.

The sentencing of Ghacham and his company concludes a comprehensive investigation by Homeland Security Investigations and CBP, with assistance from the U.S. Department of Commerce Office of Export Enforcement, the Treasury Department's Office of Foreign Assets Control, and IRS Criminal Investigation.

This case underscores the U.S. government's unwavering commitment to enforcing its customs laws and the severe consequences for those who choose to circumvent them.

Interested in learning more about CBP enforcement? Check out our upcoming webinar on the False Claims Act (FCA). We will discuss damages and criminal liability for making false claims to the government, whistleblower provisions of the FCA, and more!

Read more about undervaluing here:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
26 March 2024

Clothing Wholesaler Executive Avoids Paying Millions In Duties – Sentenced To 4 Years In Prison

United States Criminal Law
Contributor
A boutique law firm with a track record of success, Diaz Trade Law has rapidly become one of the nation’s leading Customs and International Trade Law firms. Diaz Trade Law’s diverse team of attorneys specialize in all aspects of U.S. federal trade law, from compliance to resolution of urgent issues.
See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More