Cigarette Importer Agrees to Pay U.S. $3.1 Million as Part of $10.26 Million Settlement with Justice Department
WASHINGTON, Dec. 4 /PRNewswire-USNewswire/ -- Premier Manufacturing,
Inc., a South Carolina cigarette importer, has agreed to pay an additional
$3.1 million to settle civil claims that between 1995 and 2002, it
deliberately understated the weights of cigarettes that it imported, the
Justice Department announced today. The company had previously agreed to
pay $7.16 million in restitution as part of a criminal guilty plea that it
entered in 2005. The settlement announced today covers civil claims the
government had under the False Claims Act and two customs statutes.
Since the amount of customs duties owed on imported cigarettes is based
in part on their weight, Premier avoided millions of dollars in customs
duties. Under the False Claims Act, the United States is entitled to
recover treble damages and penalties from those who knowingly submit false
claims for payment to the government or who knowingly fail to pay money
owed to the government.
"Importers who fraudulently understate their customs duties cheat
American taxpayers," said Michael F. Hertz, Deputy Assistant Attorney
General for the Civil Division. "We will continue to be vigilant to keep
importers from attempting to circumvent the requirements of federal law."
The case was handled by the Justice Department's Civil Division, the
United States Attorneys' Office in South Carolina, and the United States
Customs and Border Protection.
SOURCE U.S. Department of Justice
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