Anti-Dumping Case Continues, Hearing Date Extended; Judge Orders Dissipation of Assets

After being convicted of scheming to avoid paying nearly $2 billion in customs duties, Chinese aluminum companies filed for a continuance and enjoinment on October 14. Both were approved and the sentencing hearing is scheduled for February 28, 2022, according to court documents.

The order states that defendants Scuderia Development, Perfectus Aluminum Inc. and Acquisitions and related entities be enjoined and restrained from moving or devaluing the defendants’ assets or property.

In August, a federal jury found six businesses guilty of participating in a conspiracy to defraud the U.S. and Custom Border Protection to avoid paying large sums in customs duties. In September, the businesses moved for acquittal of all charges and a new trial.

According to the Department of Justice, the companies attempted to avoid payments via a wire-and-customs fraud scheme where aluminum disguised as “pallets” to avoid $1.8 billion in customs duties was exported to the United States and “sold” to “fraudulently inflate a China-based company’s revenues and deceive investors worldwide.”

In 2019, China Zhongwang Holdings Ltd.’s former president and Chinese billionaire, Zhongtian Liu, and several co-defendants, were alleged to have lied to U.S. Customs and Border Protection to avoid paying $1.8 billion in anti-dumping and countervailing duties (AD/CVD) to the U.S.

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