⏱ 3 min read
A Chattanooga fitness equipment company ripped off the US government to the tune of $2.1 million, underreporting the value of imported smart bikes, treadmills, and rowers to avoid paying tariffs and import assessments. From September 2019 to January 2023, Echelon Fitness Multimedia, LLC submitted fake invoices to US Customs and Border Protection, leaving out the cost of computer tablets bundled with the equipment.
The scheme was uncovered by a whistleblower, Greg Dahlstrom, who filed a qui tam suit under the False Claims Act. As part of the settlement, Echelon will pay $2.1 million, with Dahlstrom set to receive $420,000.
The government began investigating Echelon’s practices in 2022, with assistance from the DHS Office of Inspector General. Assistant US Attorneys Alan G. McGonigal and Alexa Ortiz Hadley prosecuted the case.
Echelon’s actions were a clear betrayal of the public trust. The company’s greed came at the expense of the American taxpayer, who foots the bill for tariffs and import assessments.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: false claims act
- Location: TN
- Source: DOJ Press Release
