Man pleads guilty in massive textile transshipment case
The owner of a Los Angeles-area trucking company pleaded guilty Monday in federal court to participating in a massive scheme that exploited the customs entry process to smuggle at least $267 million worth of apparel into the country without paying duty, according to U.S. Immigration and Customs Enforcement.
The Department of Homeland Security agency called it the largest commercial fraud scheme ever uncovered on the U.S. West Coast.
Almando Salcedo, 45, owner of Friends Global Logistics admitted that he used the U.S. Customs in-bond transportation system to slip Chinese-made clothing into the United States and avoid required duties or import quotas.
The conspiracy took place for an unknown period through the end of 2002, according to a 34-count indictment last September. Salcedo and his partners booked air and ocean shipments from China and provided false documents to customs brokers stating that the garments were being sold to companies in Mexico. The apparel shipments instead were delivered to buyers throughout the United States, including major distributors such as Kenko Warehouse and Hampshire Designers.
ICE said the conspirators illegally imported 7,000 shipping containers of apparel and that Salcedo was personally involved in smuggling about 3,200 containers. The declared value of the goods in the containers was $267 million, but law enforcement officials believe the true value was much higher.
During the investigation, U.S. Customs and Border Protection was able to seize about $67 million worth of goods.
“This is a significant example of yet another attempt to evade U.S. textile trade laws. CBP will continue to vigorously inspect quota-visa importations to protect America’s economy,” said Kevin W. Weeks, CBP director of field operations in Los Angeles.
Salcedo has agreed to forfeit nearly $5 million in personal property and other assets, including $1.6 million from the sale of a warehouse belonging to his trucking company.
Salcedo faces a maximum sentence of five years in federal prison when he is sentenced on May 12. The investigation into Salcedo’s co-conspirators is ongoing.