Manhattan-based apparel importer High Life LLC has been nailed with a $1.3 million settlement for systematically underreporting the value of 67 shipments to dodge customs duties, federal prosecutors announced today. The civil fraud case, brought by the U.S. Attorney’s Office for the Southern District of New York, reveals a calculated scheme to slash costs by falsifying declarations to U.S. Customs and Border Protection (CBP).
According to court filings in Manhattan federal court, High Life LLC shifted its purchasing model in December 2015—after CBP detained multiple shipments over suspected fraud. The company dropped Landed Duty Paid (LDP) arrangements and switched to Free on Board (FOB) terms, putting itself in control of import declarations. That’s when the fraud escalated: by underreporting the true value of apparel bought from foreign vendors, High Life avoided paying hundreds of thousands in legally owed duties.
U.S. Attorney Damian Williams didn’t mince words: “Rather than comply with the law, High Life chose to underreport the value of apparel imported into this country to avoid paying legally mandated customs duties.” The statement underscores the government’s intent to crack down on corporate fraud that undermines trade integrity and drains public revenue.
Homeland Security Investigations (HSI) Special Agent-in-Charge Ivan J. Arvelo called the settlement a warning shot. “This settlement should serve as a warning to companies that attempt to bolster their bottom line by cheating and defrauding the United States.” HSI agents, working with CBP, traced a pattern of undervaluation tied to sales terms with foreign suppliers—evidence that sealed the case.
CBP’s trade enforcement teams, including import specialists and auditors, flagged inconsistencies in High Life’s filings. Executive Assistant Commissioner AnnMarie R. Highsmith praised the interagency collaboration: “This case is a great example of the collaborative trade enforcement efforts between teams at CBP and the U.S. Attorney’s Office.” Field Operations Director Francis Russo added that CBP’s experts “stopped High Life’s efforts to defraud the United States of hundreds of thousands of dollars in revenue.”
Under a settlement approved by U.S. District Judge Victor Marrero, High Life LLC admitted to key allegations in the government’s complaint and agreed to the $1.3 million payout. The case stands as a stark reminder: manipulating import values isn’t a loophole—it’s fraud, and the feds are watching.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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