CHARLESTON, S.C. – A Myrtle Beach office furniture supplier and its owner are facing federal charges of customs fraud, accused of a calculated scheme to dodge millions in duties on imported goods. The U.S. Department of Justice filed a complaint against Global Office Furniture, LLC (GOF) and its owner, Malcom E. Smith, alleging violations of the False Claims Act.
The government’s complaint details a years-long operation where GOF, which imports and sells office furniture manufactured in the People’s Republic of China, allegedly worked in concert with a Chinese manufacturer to systematically undervalue imported office chairs. This fraudulent activity spanned from 2019 to 2023, and involved the submission of deliberately falsified entry summaries and invoices to U.S. Customs and Border Protection.
According to the complaint, the defendants employed a “double-invoicing” scheme, presenting significantly lower values for the chairs than were actually paid. This manipulation directly reduced the amount of customs duties owed to the United States. The scale of the alleged fraud is substantial, suggesting a deliberate and ongoing effort to maximize profits at the expense of American taxpayers.
The scheme didn’t stop at simply underreporting values. The complaint further alleges that after learning of a government investigation into their practices, Malcom E. Smith and GOF actively attempted to destroy evidence related to the fraudulent scheme. This obstruction of justice component adds another layer of seriousness to the charges.
Assistant U.S. Attorneys Austin McCullough and James Leventis are prosecuting the case, receiving crucial support from U.S. Customs and Border Protection and Homeland Security Investigations. The case is filed as United States ex rel. Joyce v. Global Office Furniture, LLC, et al., No. 2:20-cv-01223-DCN.
It’s crucial to remember that these are allegations at this stage. The United States government maintains that the claims asserted are unproven, and no determination of liability has been made. However, if proven, this case highlights a brazen attempt to exploit the U.S. trade system for personal gain, and the Grimy Times will continue to follow the developments closely.
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Key Facts
- State: South Carolina
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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