Chinese billionaire faces charges in $1.8-billion scheme to smuggle aluminum through L.A.
Source: LA Times
A Chinese billionaire and the company he founded were accused of hatching a scheme to avoid paying $1.8 billion in tariffs by disguising huge amounts of aluminum as pallets and smuggling the material into the United States, according to a federal indictment unsealed late Tuesday.
China Zhongwang Holdings Ltd., Asias largest aluminum extrusion company, and Zhongtian Liu, 55, former president and chairman, are also accused of engineering bogus sales of the aluminum to related entities to inflate the companys revenues and deceive investors, authorities announced.
The aluminum sold to United States-based companies controlled by Liu were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets, which would be finished goods not subject to the duties, according to the indictment. In reality, there were no customers for the 2.2 million pallets imported by the Liu-controlled companies between 2011 and 2014, and no pallets were ever sold, the U.S. attorney said in a statement.
Authorities added that the aluminum was shipped through Southern California ports and stockpiled in local warehouses that were owned by companies under Lius control.
Read more: https://www.latimes.com/california/story/2019-07-31/zhongwang-holdings-aluminum-smuggling-indictment
This is a weird one.
NewDayOranges
(692 posts)Lochloosa
(16,069 posts)safeinOhio
(32,727 posts)and when did she know it?
bucolic_frolic
(43,311 posts)Smuggling is the answer to a lot of government regulation. Funny how Trump will let corporations do what they please, but puts tariffs on foreign goods so US consumers pay more.
Wellstone ruled
(34,661 posts)to bring this Guy to Justice?
nitpicker
(7,153 posts)jmowreader
(50,563 posts)China is the only country in the world thatll execute you for financial crimes. Id be worried if I was them.