Perfectus Aluminium Inc et al, Smuggling, California 2021

LOS ANGELES – In a landmark case, six Southern California companies have been ordered to pay $1.83 billion in restitution for their role in a conspiracy to defraud the United States through a scheme to avoid payment of aluminum duties.

The defendants, which include Perfectus Aluminium Inc., Perfectus Aluminium Acquisitions LLC, Scuderia Development LLC, 1001 Doubleday LLC, Von Karman – Main Street LLC, and 10681 Production Avenue LLC, were found guilty of one count of conspiracy, nine counts of wire fraud, and seven counts of passing false and fraudulent papers through a customhouse by a federal jury in August 2021.

The scheme, which spanned from 2011 to 2014, involved the importation of 2.2 million aluminum pallets, valued at $1.8 billion, into the United States through the ports of Los Angeles and Long Beach. The pallets were then stockpiled at four large warehouses in Southern California, all of which were purchased at the direction of Zhongtian Liu, the former president and chairman of China Zhongwang Holdings Ltd.

Liu and his co-defendants orchestrated the bogus sales of aluminum to Liu-controlled companies in Southern California to falsely inflate China Zhongwang’s value. The company’s annual reports claimed that there was a robust demand for the aluminum pallets in the United States, but in reality, the aluminum was being stockpiled and never sold.

On August 26, 2021, United States District Judge R. Gary Klausner sentenced the defendants to five years of probation, which is the maximum penalty permitted by law, and ordered them to pay the $1.83 billion in restitution.

The defendants are now required to pay the restitution, which will be used to compensate the United States for the lost revenue due to the defendants’ actions. This case highlights the importance of enforcing customs regulations and preventing smuggling schemes that can have a significant impact on the US economy.

The defendants’ real full name or legal entity name is: Perfectus Aluminium Inc., Perfectus Aluminium Acquisitions LLC, Scuderia Development LLC, 1001 Doubleday LLC, Von Karman – Main Street LLC, and 10681 Production Avenue LLC. The exact criminal charges are: one count of conspiracy, nine counts of wire fraud, and seven counts of passing false and fraudulent papers through a customhouse. The city and state are: Los Angeles, California. The exact date is: August 26, 2021. The sentence or outcome is: five years of probation and $1.83 billion in restitution.

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