{"id":54954,"date":"2023-12-09T21:13:21","date_gmt":"2023-12-10T05:13:21","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=54954"},"modified":"2023-12-09T21:14:43","modified_gmt":"2023-12-10T05:14:43","slug":"clothing-wholesaler-ordered-to-pay-10-4-million-for-violating-drug-laws-doing-business-with-woman-linked-to-sinaloa-cartel","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=54954","title":{"rendered":"Clothing Wholesaler Ordered to Pay $10.4 Million for Violating Drug Laws, Doing Business with Woman Linked to Sinaloa Cartel"},"content":{"rendered":"<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>LOS ANGELES<\/strong><\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5414 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security-300x184.jpg\" alt=\"\" width=\"300\" height=\"184\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security-300x184.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security.jpg 584w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A Paramount-based clothing wholesale company was fined $4 million, ordered to pay $6.3 million in restitution,<b>\u00a0<\/b>and placed on probation for five years for undervaluing imported garments<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">This undervaluing of garments was in connection with a scheme to avoid paying millions of dollars in customs duties and for doing business with a woman linked to Mexico\u2019s Sinaloa drug cartel.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">U.S. District Judge Maame Ewusi-Mensah Frimpong sentenced <\/span><span style=\"font-size: 20px;\">Ghacham Inc., which does business under the \u201cPlatini\u201d brand name.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In addition to imposing financial penalties, Judge Frimpong required Ghacham Inc. to create and maintain an anti-money laundering compliance and ethics program, officials stated.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Also, officials stated that the business will submit to reviews by a third-party monitor, who will report to the court annually.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11468 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/US_Customs_and_Border_Protection_-_Border_Patrol_Patch-261x300.jpg\" alt=\"\" width=\"261\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/US_Customs_and_Border_Protection_-_Border_Patrol_Patch-261x300.jpg 261w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/US_Customs_and_Border_Protection_-_Border_Patrol_Patch.jpg 400w\" sizes=\"auto, (max-width: 261px) 100vw, 261px\" \/>The company pleaded guilty in December 2022 to one count of conspiracy to pass false and fraudulent papers through a customhouse and one count of conspiracy to engage in any transaction or dealing in properties of a specially designated narcotics trafficker under a statute known as the Foreign Narcotics Kingpin Designation Act.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">This is the first criminal conviction in this district under the Kingpin Act.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Mohamed Daoud Ghacham,<b>\u00a0<\/b>39, of Bell, a Ghacham Inc. executive, pleaded guilty in December 2022 to one count of conspiracy to pass false and fraudulent papers through a customhouse.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">He is expected to be sentenced in the coming months.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to court documents, Ghacham Inc. imported clothing from China and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments, allowing the company to avoid paying the full amounts of tariffs owed on the imports.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Under Mohamed Ghacham\u2019s direction, Chinese suppliers would prepare two invoices for the clothing ordered by Ghacham Inc.: a true invoice, which reflected the actual price paid for the goods, and a fraudulent \u201ccustoms invoice,\u201d which reflected an understated price. <\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Ghacham Inc. submitted the customs invoices to CBP and customs brokers to fraudulently reduce the tariffs owed on the imports while it maintained the true invoices in its accounting records.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-54956 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/12\/images.png\" alt=\"\" width=\"250\" height=\"167\" \/>From July 2011 to February 2021, Ghacham Inc. and Mohamed Ghacham undervalued imported garments by more than $32 million and failed to pay approximately $6,390,792 in customs duties.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Ghacham Inc. also illegally conducted business with Mar\u00eda Tiburcia Cazarez P\u00e9rez in violation of the Kingpin Act, which prohibits people and businesses in the United States from doing business with \u201cSpecially Designated Narcotics Traffickers.&#8221; <\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Cazarez P\u00e9rez was previously listed as a Specially Designated Narcotics Trafficker under the Kingpin Act for her involvement in the financial network of Ismael \u201cEl Mayo\u201d Zambada Garc\u00eda and Victor Emilio Cazares Salazar, two leaders of the Mexico-based Sinaloa Cartel.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Cazares Salazar was sentenced to 15 years in federal prison for drug trafficking activities in federal cases out of San Diego and New York City.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">&#8220;The company flouted the Kingpin Act, doing business with members of a <\/span><span style=\"font-size: 20px;\">money laundering network used by&#8230; two of the world\u2019s most notorious drug traffickers,\u201d prosecutors argued in a sentencing memorandum. \u201cIt cheated taxpayers out of millions, both to save itself money and to secure an unfair edge against its competition in the Southern California garment market. And it did so through a sustained, extensive effort over the course of more than a decade.\u201d<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Homeland Security Investigations and CBP investigated this matter.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Assistant United States Attorney Alexander B. Schwab of the Corporate and Securities Fraud Strike Force prosecuted this case.<\/span><\/p>\n<p class=\"yiv4162003733MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES A Paramount-based clothing wholesale company was fined $4 million, ordered to pay $6.3 million in restitution,\u00a0and placed on probation for five years for undervaluing imported garments This undervaluing of garments&#8230;<\/p>\n","protected":false},"author":1,"featured_media":54958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-54954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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