Ajay Goel and Thomas Diener, Smuggling Goods, Pennsylvania 2011

Ameri-Source International Inc., Ameri-Source Specialty Products Inc., Ameri-Source Holdings Inc., Ajay Goel and Thomas Diener – and a related importer, SMC Machining LLC, have agreed to pay $3 million to resolve a lawsuit brought by the United States under the False Claims Act.

The lawsuit alleged that the defendants had engaged in a scheme to evade customs duties on imports of small-diameter graphite electrodes from the People’s Republic of China (PRC) from December 2009 to March 2012. The United States contended that Ameri-Source International misclassified the size of the electrodes to avoid paying the duties. There are no antidumping duties on larger diameter graphite electrodes.

The United States also alleged that Goel, Diener and the other companies caused and conspired in the misrepresentation to evade duties. Ameri-Source International also waived indictment and pleaded guilty today to two counts of smuggling goods into the United States.

In U.S. District Court in the Western District of Pennsylvania, Ameri-Source International admitted that on April 27, 2011 and June 9, 2011, the company falsely declared imported cargo from the PRC as being graphite rods greater than 16 inches in diameter.

Ameri-Source International was immediately sentenced to pay a $250,000 criminal fine within 10 days and applied the payment of the $3 million to the loss of antidumping duties of $2,137,420.00.

The settlement announced today resolves claims that Ameri-Source International evaded antidumping duties on 15 shipments of small-diameter graphite electrodes from the PRC from December 2009 to March 2012.

The companies are all based in Pennsylvania, and the Department of Commerce assesses and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects duties to protect U.S. manufacturers from unfair competition abroad.

Related Federal Cases