Alexis LLC, False Claims Act Violations, Miami FL, 2024

MIAMI – A devastating crime has been uncovered in the Sunshine State, as Alexis LLC, a womenswear company, has been caught underpaying customs duties on imported women’s apparel. According to a recent settlement, Alexis LLC paid a total of $7,691,999.63 to the United States to resolve this matter.

The scheme, which lasted from January 1, 2015 to December 31, 2022, saw Alexis LLC materially misreport the value of imported apparel to the Customs and Border Protection (CBP), thereby avoiding the full amount of customs duties and fees owed. This brazen display of corporate greed has left many wondering how such a large-scale operation could fly under the radar for so long.

The U.S. Attorney for the Southern District of Florida, Markenzy Lapointe, praised the efforts of his team and their partners at CBP for bringing the perpetrators to justice. ‘As this settlement demonstrates, the United States Attorney’s Office for the Southern District of Florida, along with our CBP partners, will, while continuing to hold accountable entities that engage in improper trade practices and deny our government vital revenues, work to resolve such matters in the interests of justice.’

Acting Director of Field Operations for CBP’s San Francisco/Portland Field Office, Bruce Murley, added, ‘CBP’s Apparel, Footwear & Textile Center of Excellence and Expertise worked in collaboration with CBP’s Office of Chief Counsel and the U.S. Attorney’s Office for the Southern District of Florida to review thousands of documents, hundreds of entry summaries, and analyzed financial reports provided by Alexis LLC as relevant to the undervaluation and underpayment of duties.’

Homeland Security Investigations (HSI) and CBP were instrumental in uncovering the scheme, which highlights the importance of inter-agency collaboration in enforcing U.S. laws related to the importation of merchandise.

The case was initiated when a whistleblower filed a complaint in federal court in Miami, which ultimately led to the settlement. Alexis LLC and its senior management have cooperated fully with the investigation, voluntarily submitting information and records to the U.S. government.

The $7.6 million settlement is a significant blow to Alexis LLC, but it also serves as a warning to other companies engaging in similar practices. As U.S. Attorney Lapointe stated, ‘while continuing to hold accountable entities that engage in improper trade practices and deny our government vital revenues, work to resolve such matters in the interests of justice.’

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