WASHINGTON — In a brazen attempt to cheat the system, Blue Furniture Solutions, LLC, its successor XMillenium, LLC, and two of the companies’ former executives—CEO Yingqing Zeng and CFO Alex Cheng—have agreed to pay more than $5.2 million to resolve allegations that they violated the False Claims Act by evading customs duties and fees on furniture imported from China.
U.S. Attorney John F. Bash of the Western District of Texas announced the agreement, which comes after a thorough investigation by U.S. Customs and Border Protection, Department of Homeland Security Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations.
In July 2015, University Loft Company filed a False Claims Act qui tam action in the U.S. District Court for the Western District of Texas, Austin Division, alleging that Blue Furniture and others were importing wooden bedroom furniture into the U.S. without paying the required anti-dumping duties and other customs fees.
According to the complaint, Blue Furniture, XMillenium, Zeng, and Cheng conspired to evade millions of dollars in anti-dumping duties and customs fees by falsely describing wooden bedroom furniture imported from China as “metal” or “non-bedroom” furniture on documents submitted to U.S. Customs and Border Protection.
The defendants manipulated images of their products in packing lists and invoices, and directed their Chinese manufacturers to ship furniture in mislabeled boxes and to falsify invoices to help the defendants avoid detection by authorities in the United States.
To resolve the government’s allegations, Blue Furniture and XMillenium consented to entry of a final judgment holding them jointly and severally liable to the U.S. in the amount of $4,679,987.19. Zeng and Cheng separately agreed to pay $460,000 and $90,000, respectively, to resolve their personal liability.
U.S. Attorney Bash commended the efforts of U.S. Customs and Border Protection, Department of Homeland Security Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations for their investigation of this matter.
The case is United States ex rel. University Loft Company v. Blue Furniture Solutions, LLC et al., Civil Action No. 1:15-CV-588-LY (W.D. Tex.).
Related Federal Cases
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · New Mexico
- Parkchester Preservation Management, LLC, Tenant Blacklisting, New … · Arkansas
- Pam Bondi, Money Laundering, Texas, 2023 · New Mexico
- Parkchester Preservation Management, LLC, Tenant Blacklisting, New … · Arkansas
- Ken Paxton Blocked Texas Land Seizure, Oklahoma OK, 2025 · Alabama
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News