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  3. United States Files Suit Against Former Corporation President for Unpaid Duties, Penalties

United States Files Suit Against Former Corporation President for Unpaid Duties, Penalties Following HSI Newark Investigation

Release Date: October 31, 2024

WASHINGTON — A former corporation president received a civil lawsuit from the U.S. government following an investigation led by Homeland Security Investigations (HSI) Newark with support from U.S. Customs and Border Protection (CBP).

The United States filed a civil lawsuit Oct. 25 against Lawrence Bivona, who was the President of LaJobi, Inc., a Delaware Corporation that imported Chinese-manufactured children’s bedroom furniture into the United States. The lawsuit alleges that Bivona made false statements to customs officials and, as a result, avoided paying antidumping duties owed on the imported furniture.

“The civil lawsuit filed by the United States against Lawrence Bivona is a culmination of a long-term investigation by HSI Newark with support from CBP who partners with us to bring illegal trade practices to justice,” said HSI Newark acting Special Agent in Charge Spiros Karabinas. “HSI Newark meticulously investigates general commercial fraud, focusing on violations of import laws and regulations that involve false or fraudulent documents, statements, and practices. Individuals or companies seeking illicit gain by skirting our nations laws will be held accountable.”

At the time merchandise enters into the United States, the importer is responsible for providing all information necessary to enable CBP to assess the applicable duties owed on the goods, including any antidumping duties applicable to the merchandise. Antidumping duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

According to the investigation, Bivona caused LaJobi to misrepresent the identity of the manufacturers of the children’s furniture imported from China. In particular, the United States alleges that Bivona falsely represented that the furniture was manufactured by Chinese entities subject to duty rates of approximately 7% or less and failed to disclose that the furniture was actually manufactured by entities subject to duty rates of 216%.

“We take very seriously our role in protecting the U.S. economy from illegal and predatory trade practices,” said Assistant Director Ivan J. Arvelo of HSI Global Trade Investigations. “HSI is committed to working alongside CBP and partners to stop those who engage in fraud to circumvent U.S. trade laws.”

HSI Newark thanked CBP for their support in the investigation leading up to the civil lawsuit, specifically CBP Trade Regulatory Audit Newark, CBP Associate Chief Counsel New York, CBP Consumer Products and Mass Merchandising Center of Excellence and Expertise.

“These civil penalties support the seriousness of CBP’s trade mission and protect the U.S. economy, while maintaining fair trade and preserving American jobs from predatory practices,” said Executive Director Susan Thomas of CBP’s Cargo and Conveyance Security, Office of Field Operations. “CBP’s antidumping and countervailing duties enforcement aims to mitigate harm by anti-competitive behavior and supports a level playing field for U.S. companies injured by unfair trade practices.”

The complaint seeks the recovery of over $7 million in import duties and over $15 million in civil penalties.

“Antidumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who seek to gain an unfair advantage by violating our trade laws.”

The claims in the complaint are allegations only, and there has been no determination of liability.

Follow us on X, formerly known as Twitter, at @HSINewark to learn more about HSI’s global missions and operations.

Last Updated: 10/31/2024
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