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New Jersey Business Owner Pleads Guilty to Customs Duty Evasion
Company Settles for $3.1 Million Over Mislabeling and Importation Fraud
Newark, NJ - In a notable admission of corporate and individual misconduct, George Volpe, 60, of Roseland, New Jersey, and his company, Penta International Inc. (Penta), have acknowledged wrongdoing in a case of customs duty evasion and hazardous chemical mislabeling, as announced by U.S. Attorney Philip R. Sellinger.
Volpe, standing before U.S. District Judge Esther Salas in Newark federal court, pleaded guilty to wire fraud charges related to the deliberate mislabeling of hazardous chemicals imported from China. The fraudulent activities, spanning from January 2016 through August 2021, led to an underpayment of U.S. Customs duties totaling $1.4 million. Sentencing for Volpe is scheduled for August 13, 2024, marking a significant moment of accountability for the business owner.
In a parallel civil resolution, Penta has agreed to a settlement of $3.1 million plus interest to address allegations under the False Claims Act. This act pertains to the company's involvement in a scheme with a Chinese vendor to evade customs duties by mislabeling chemicals imported into the United States. The settlement also includes Penta's admission of the importation and mislabeling malpractices, showcasing the legal system's reach in correcting corporate wrongdoing.
This case highlights the crucial role of whistleblowers in exposing fraudulent activities. Angel Figueroa, the whistleblower in this scenario, filed a lawsuit under the False Claims Act's provisions, ultimately contributing to the government's recovery. Figueroa is set to receive $600,000 of the settlement, illustrating the financial and ethical incentives for reporting illegal activities.
The investigation leading to these admissions and settlements was a collaborative effort involving Homeland Security Investigations Newark, U.S. Customs and Border Protection, and the Drug Enforcement Administration, underlining the importance of interagency cooperation in safeguarding public and economic interests.
The prosecution of the criminal case was led by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit, while Assistant U.S. Attorney Mark Orlowski of the Health Care Fraud Unit represented the government in the civil case. This comprehensive approach to justice reflects the multifaceted strategies employed to combat and deter corporate fraud and misconduct.
