BUFFALO, N.Y.–In a brazen scheme to evade antidumping duties, Gregory Magness, 66, of Polk, PA, and his son Justin Magness, 36, of Oil City, PA, pleaded guilty to conspiracy to smuggle and conspiracy to commit money laundering before Chief U.S. District Judge William M. Skretny.
The charges carry a maximum penalty of 10 years and a $250,000 fine for Gregory Magness. Justin Magness pleaded guilty to aiding and abetting in the presentation of a false document to Customs and Border Protection officers, carrying a maximum penalty of one year in prison and a $100,000 fine.
As the president of Superior Metal Powders, Inc., Gregory Magness and his son Justin, vice-president, bought magnesium from William Nehill, which was imported from China. To avoid the antidumping duty of 305.56%, the defendants mixed the pure magnesium with aluminum and falsely labeled it as magnesium reagent, resulting in a $6,000,000 duty loss to the United States.
The mislabeling allowed the defendants to pay only 5% duty on the shipments. During one such import in 2004, Justin Magness aided William Nehill in preparing false documents that were provided to and relied on by customs, resulting in a lower duty cost.
The pleas are the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, the Internal Revenue Service, Criminal Investigation Division, and the Department of Defense Criminal Investigative Service.
Gregory and Justin Magness will be sentenced on May 13, 2015, at 9:00 a.m. by Judge Skretny.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
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Key Facts
- State: New York
- Category: White Collar Crime|Organized Crime
- Source: DOJ Press Release â†â€â€
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