Texas Cabinet Supplier to Pay $12M Settlement Over False Claims Act Violations

Allied Stone Inc., a Dallas, Texas-based supplier of countertop and cabinetry products, and its President, Jia “Jerry” Lim, have agreed to pay a total of $12.4 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 quartz surface products imported from China, the U.S. Attorney’s Office, Northern District of Texas announced.

The settlement resolves allegations that Allied Stone and Mr. Lim knowingly evaded or conspired to evade duties on Chinese quartz surface products that were imported between Sept. 29, 2018 and Feb. 7, 2023.

Among other things, the United States alleged that Allied Stone and Mr. Lim misrepresented, caused to be misrepresented, or conspired in the misrepresentation of Chinese quartz surface products as other merchandise subject to lesser duties, such as marble or crystallized glass, to improperly avoid applicable antidumping and countervailing duties.

The U.S. also alleged that Allied Stone and Mr. Lim failed to declare and pay, and failed to ensure that others (including manufacturers and third-party entities serving as the official importers of record) were declaring and paying, applicable antidumping and countervailing duties owed to the United States on entries of Chinese quartz surface products.

The settlement with Allied Stone and Mr. Lim resolves a civil lawsuit filed by relator Melinda Hemphill under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery.

Source: Department of Justice

Topics Texas Claims