United States Attorney David Metcalf announced that Grosfillex, Inc., a French outdoor furniture manufacturer with North American headquarters in Robesonia, Pennsylvania, has agreed to pay $4.9 million. The payment resolves allegations of violating the False Claims Act by evading antidumping and countervailing duties on extruded aluminum items from China.
Antidumping and countervailing duties are imposed by the U.S. Department of Commerce and collected by U.S. Customs and Border Protection (CBP) to protect domestic producers. These duties prevent foreign companies from selling products at below-cost prices and offset foreign government subsidies.
The settlement addresses claims that Grosfillex submitted false customs forms to CBP, falsely stating certain furniture parts were not subject to these duties. It is alleged that some parts were disguised as sham furniture kits, while others had incorrect customs forms that went uncorrected even after the errors were discovered.
U.S. Attorney Metcalf stated, “This settlement should serve as a warning that the United States Attorney’s Office for the Eastern District of Pennsylvania will use every tool available to combat fraud in international trade.” Edward V. Owens of Homeland Security Investigations (HSI) Philadelphia emphasized their commitment to enforcing trade laws and maintaining economic integrity.
The lawsuit was initially filed by former Grosfillex employee Edward Wisner under the whistleblower provision of the False Claims Act. As part of the resolution, Wisner will receive approximately $963,000. He is represented by attorney David J. Caputo of Youman & Caputo LLC in Philadelphia.
The case was handled through a coordinated effort involving multiple agencies including the U.S. Attorney’s Office for the Eastern District of Pennsylvania, CBP, HSI, and others within the Department of Justice.
The resolved claims are allegations only; no liability has been determined.
