Multiple Companies Named in False Claims Act Lawsuit Involving Misclassified Automotive Manifold Parts
|Photo Source - GardenTrucking.com|
China Metal Products Company operates a North American plant in Milford, Michigan under the name of CMAI Industries LLC. CMAI Industries, along with several of China Metal’s international subsidiaries, all took part in the automotive scheme, falsely classifying commercial truck exhaust manifolds imported from China to avoid paying a duty charge. The way the company got around paying the duty fees was to simply classify the automotive manifolds as "unfinished." The reason for claiming the manifolds were unfinished? Under United States law, when unfinished automotive manifolds are imported to the United States, they are not charged a duty fee. If the truck manifolds had been correctly classified as finished, CMAI Industries would have been forced to pay a duty on each shipment.
"Our country was built on the duties collected under our customs laws and the enforcement of those laws continues to be an HSI priority two centuries later," said Brian M. Moskowitz, special agent in charge of HSI Michigan and Ohio. "HSI special agents will continue to protect the revenue of the United States and aggressively investigate individuals and companies who attempt to operate outside our laws and regulations."
|Photo Source - Gardentrucking.com|
These corporations are a group of related entities, operating in China, Taiwan and the United States, that manufacture and sell automotive parts. As part of each company’s operation, auto parts were routinely imported into the United States and sold around the nation. The companies involved in this scandal agreed to the settlement as a way to resolve claims that they violated the False Claims Act by falsely misclassifying the auto parts. The long list of companies and citizens involved in this False Claims Act lawsuit are:
China Metal Products Co., Ltd.
China Metal Automotive International Co., Ltd.
China Metal International Holdings, Inc.
CMP (Hong Kong) Industry Co., Ltd.
CMW (Cayman Islands) Co., Ltd.
Shiuh-Lung Chiang, also known as Ronny Chiang
What is the False Claims Act?
The False Claims Act allows private citizens who have first-hand knowledge of fraud against the government to file a lawsuit on behalf of the United States government. When whistleblowers consider bringing a Qui Tam lawsuit against their employers, it is vital to first seek out the professional advice of highly skilled lawyers in this particular legal niche, such as the legal team at Berger & Montague, P.C. Whistleblowers that bring a successful False Claims Act lawsuit are entitled to a share of the money that the government receives in any recovery. The whistleblower in this suit, Theodore Ludlow, received $1.2 million as his cut of the money recovered by the United States government.
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