SCHEME TO AVOID PAYING MILLIONS OF DOLLARS IN CUSTOMS DUTIES

Whistleblower Partners attorneys represented whistleblower Steve Hughes in a case against his former employer, Centric Parts, alleging that the auto parts distributor knowingly misclassified brake pads imported from Asia to avoid tariffs owed to the United States government. When Hughes discovered the misconduct, he immediately advised the CEO and CFO to disclose the issue to U.S. Customs and Border Protection. However, Centric Parts concealed the information and retaliated against Hughes, maintaining the status quo and dodging millions of dollars in customs duties. An $8 million False Claims Act settlement against Centric Parts came to fruition, and $1.48 million of that went directly to Hughes and another whistleblower.