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  4. Federal authorities in Puerto Rico reach settlement under the ‘False Claims Act’ over illegal international trade practices

Federal authorities in Puerto Rico reach settlement under the ‘False Claims Act’ over illegal international trade practices

Release Date
Fri, 10/30/2020

SAN JUAN, Puerto Rico – On Oct. 20, 2020, Days and Towers, LLC. agreed to pay the United States of America the sum of  $817,927.58 to settle claims under the False Claims Act, 31 U.S.C. Section 3729 and unpaid customs duties.

The settlement is the result of coordinated efforts between the U.S. Attorney’s Office, District of Puerto Rico and the Global Trade Investigations (GTI) Task Force; an integrated Task Force of US Customs and Border Protection (CBP) and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

The investigation leading to this settlement agreement revealed that from in or about August 2015 to in or about August 2019, Days and Towers submitted approximately 51 import product entries to CBP containing false tariff schedules intending to reduce its customs obligations.  

“CBP’s trade enforcement efforts seek to better identify, detect, and interdict shipments at risk of duty evasion,” indicated Gregory Alvarez, Director of Field Operations for Puerto Rico and the US Virgin Islands. “CBP advances these efforts through partnerships with the private sector, advanced technology, and integrated enforcement.”

 “This case underscores the collaborative efforts employed by the US Attorney’s Office, in coordination law enforcement partners of HSI and CBP under the CMLA to hold individuals and corporate entities accountable for fraudulent conduct that disrupts our nation’s international trade streams,” said U.S. Attorney W. Stephen Muldrow. “Our office will continue to investigate illegal trade practices and will aggressively pursue civil and criminal actions against those who attempt to defraud the United States.”

“Violations under the federal False Claims Act can result in significant fines and penalties as this case clearly demonstrates,” said Iván J. Arvelo, special agent in charge of HSI San Juan and U.S. Virgin Islands. HSI, along with our partners in the Caribbean Anti-Money Laundering Alliance, will continue working together against local and international money laundering and other serious financial crimes,” added Arvelo.

 This case was prosecuted by Assistant U.S. Attorney Jorge L. Matos at the U.S. Attorney’s Office, in conjunction with HSI Special Agents Rafael O. Gonzalez and Ivan Serpa with the support of CBP.

If you have any information regarding suspected fraud or illegal trade activity, please report the trade violation to: e-Allegations Online Trade Violation Reporting System or by calling 1-800-BE-ALERT.   

Last Modified: Feb 03, 2021