Perfectus Aluminum Inc. and Related Companies Agree to Pay $549.5 Million to Settle False Claims Act Allegations Relating to Evaded Customs Duties

LOS ANGELES – California-based companies Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC and four affiliated warehousing companies have agreed to pay a total of $549.5 million to resolve allegations that they violated the False Claims Act by knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States on aluminum extrusions imported from the People’s Republic of China (China). “The President’s America First Trade Policy defends this country’s national and economic security and ensures compliance with trade laws, including the payment of tariffs intended to level the playing field for U.S. manufacturers,” said Acting Attorney General Todd Blanche. “Those who try to game the system harm American businesses and workers and will be brought to justice.” “Unscrupulous, corrupt, and anti-competitive practices against American manufacturers will not be tolerated,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Law enforcement will use all legal means to protect American taxpayers, workers, and businesses.” “Consistent with the goals of the Task Force to Eliminate Fraud , this settlement reflects our commitment to hold accountable those who commit fraud on the government by withholding duties that are owed on imported goods,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Civil Division will continue to zealously pursue those who attempt to evade such duties and harm U.S. manufacturing jobs.” U.S. Customs and Border Protection (CBP) played a pivotal role in this action, providing critical support through the Office of Trade, Office of Field Operations, Office of Finance, and Office of Chief Counsel. “Duty evasion is not a victimless crime; it hurts businesses that play by the rules and undermines U.S. economic security,” said CBP Office of Trade Executive Assistant Commissioner Susan S. Thomas. “I am proud of CBP’s close collaboration with the Justice Department and Homeland Security Investigations, as we work together to protect the American economy.” To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. During the relevant time period, aluminum extrusions from China were subject to both antidumping and countervailing duties. The settlement resolves civil allegations that, from July 2011 through June 2014, Defendants Perfectus, Perfectus Aluminum Acquisitions, and its affiliated warehousing companies 1001 Doubleday, LLC; Von-Karman Main Street, LLC; 10681 Production Avenue, LLC; and Scuderia Development, LLC (together, “Perfectus Defendants”) knowingly made, and caused others to make, false statements on Customs Form 7501 Entry Summaries that were material to obligations to pay duties owed to CBP on extruded aluminum. The Perfectus Defendants knowingly and improperly avoided antidumping and countervailing duties owed on more than 2.2 million aluminum extrusions in the form of “pallets,” which they misrepresented to CBP as finished merchandise not subject to antidumping and countervailing duties. The pallets were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets. In fact, there were no customers for these pallets imported by the Defendants between 2011 and 2014, and no pallets were ever sold. On August 23, 2021, a jury in the Central District of California convicted the Perfectus Defendants of Conspiracy to Commit an Offense Against t