Allied Stone Inc., a company based in Dallas, Texas, and its president, Jia “Jerry” Lim, have agreed to pay $12.4 million to settle allegations that they violated the False Claims Act. The settlement resolves claims that Allied Stone and Lim knowingly evaded antidumping and countervailing duties on quartz surface products imported from China.
According to the U.S. Department of Justice, these duties are intended to protect American manufacturers by preventing foreign companies from selling products at unfairly low prices or benefiting from government subsidies.
“This settlement reflects our commitment to hold accountable those who evade or conspire to evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for American manufacturers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by evading or conspiring with others to evade duties owed.”
Acting U.S. Attorney Nancy E. Larson for the Northern District of Texas stated: “This case demonstrates that the United States Attorney’s Office for the Northern District of Texas and its partners will use every tool available to ensure compliance with our nation’s trade policy, including customs, duties, and tariffs on foreign imports meant to level the playing field. This settlement sends a message that U.S. companies cannot turn a blind eye to the evasion of customs duties.”
“Providing false information to CBP violates the law, and it is imperative that violators face consequences,” said acting Executive Assistant Commissioner Susan S. Thomas of the Office of Trade, U.S. Customs and Border Protection (CBP). “CBP will always work alongside the Department of Justice to ensure a level playing field for U.S. businesses.”
To import goods into the United States, companies must declare details such as country of origin and whether products are subject to duties collected by CBP on behalf of agencies like the Department of Commerce.
The allegations cover imports made between September 29, 2018 and February 7, 2023. Authorities claim Allied Stone and Lim misrepresented Chinese quartz surface products as other merchandise with lower duties—such as marble or crystallized glass—and failed to ensure correct duty payments were made either directly or through third parties.
The settlement also resolves a lawsuit brought under whistleblower provisions by Melinda Hemphill in federal court in Northern Texas (United States ex rel. Melinda Hemphill v. Allied Stone Inc., et al., No. 21-cv-2955). As part of this resolution, Hemphill will receive about $2.17 million from the settlement.
The investigation involved cooperation among several federal offices: DOJ’s Commercial Litigation Branch (Fraud Section), U.S. Attorney’s Office for the Northern District of Texas, CBP’s legal counsel in Gulf Southwest Region, and CBP’s Trade Regulatory Audit unit.
Trial Attorney Gavin Thole (Justice Department), Assistant U.S. Attorney Najib Gazi (Northern District of Texas), and former Assistant U.S. Attorney Richard Guiltinan managed aspects of this case.
The government notes that these are allegations only; no determination of liability has been made.
