Toyo Ink SC Holdings Co. Ltd and affiliated entities (“Toyo Ink”) agreed to pay $45 million to settle allegations that they violated the False Claims Act by knowingly failing to pay duties on products imported into the United States.
The government alleged that Toyo Ink misrepresented the country of origin on documents presented to U.S. Customs and Border Protection to avoid paying duties on imports of the colorant carbazole violet pigment number 23.
The allegations were raised by a whistleblower who worked with a domestic producer of the subject product. For his efforts in exposing this fraud, the whistleblower will receive more than $7,875,000 as his share of the government’s recovery.
For more information on this case, click here: http://www.justice.gov/opa/pr/2012/December/12-civ-1504.html