With how financially stressed our country is, it’s good to know that these smugglers are at least being held accountable for their – GET THIS! – $2mil in lost tax revenue. All from smuggling denim.
LOS ANGELES (CBS/AP) — Authorities say nine people have been indicted on charges of smuggling and money laundering tied to a denim-importing scheme that cost the government at least $2 million in tax revenue.
Immigration and Customs Enforcement said Monday that the indictments were handed down in federal court in Los Angeles on Thursday.
Officials say the defendants skirted customs duties, filed fraudulent paperwork and deliberately misclassified merchandise in a scheme to illegally import more than $12 million in Chinese-made clothing over the last two years. Authorities say most of the clothing in the 200 shipments was denim.
So, these guys were pretty much just middlemen, as court documents “allege that Lai charged importers $5,000 to $10,000 a shipment to divert merchandise” through her FTZ warehouse. Tax. Free.
We’ve spoken before about how important it is to not buy fake designer denim. Beyond the fact that it’s tacky (seriously, so tacky), it costs you more than you think. Here’s why:
1. Products don’t last nearly as long as quality, premium denim. You’re buying shoddy goods, and they’ll behave as such.
2. You’re diverting jobs overseas based on lower labor costs which may be needed to compensate for the loss of sales from counterfeit pairs.
Obviously, Denim Debutante readers don’t buy counterfeit denim – one of a million reasons why you guys are the best of the best. So, share with me: