United States Attorney David Metcalf has announced that Grosfillex, Inc., a French outdoor furniture manufacturer with North American headquarters in Robesonia, Pennsylvania, will pay $4.9 million to settle allegations of evading antidumping and countervailing duties on imports from China. The company was accused of violating the False Claims Act by submitting false customs forms to U.S. Customs and Border Protection (CBP) for extruded aluminum parts.
The U.S. Department of Commerce assesses antidumping and countervailing duties to protect domestic producers from unfair foreign competition. Antidumping duties prevent products from being sold at below-cost prices in the U.S., while countervailing duties offset foreign government subsidies.
Grosfillex allegedly submitted false customs forms claiming certain aluminum parts were not subject to these duties. The company also reportedly packaged some parts as sham furniture "kits" and failed to correct previous customs forms after learning they were inaccurate.
U.S. Attorney Metcalf stated, "This settlement should serve as a warning that the United States Attorney’s Office for the Eastern District of Pennsylvania will use every tool available to combat fraud in international trade." Edward V. Owens, Special Agent in Charge of Homeland Security Investigations Philadelphia, emphasized their commitment to enforcing trade laws: "By uncovering and dismantling intricate schemes to defraud the government, we ensure that all businesses operate on a fair and level playing field."
The settlement resolves a lawsuit filed by Edward Wisner, a former Grosfillex employee, under the whistleblower provision of the False Claims Act. Wisner will receive approximately $963,000 from the government's recovery. He is represented by attorney David J. Caputo.
The resolution resulted from cooperation between various agencies including CBP, HSI, and sections of the Department of Justice.
Assistant United States Attorney Mark J. Sherer is handling the matter for the U.S. Attorney’s Office.
The claims settled are allegations only; no liability has been determined.
