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Wed Jul 31, 2019, 05:01 PM

Chinese billionaire faces charges in $1.8-billion scheme to smuggle aluminum through L.A.

Source: LA Times

A Chinese billionaire and the company he founded were accused of hatching a scheme to avoid paying $1.8 billion in tariffs by disguising “huge amounts” of aluminum as pallets and smuggling the material into the United States, according to a federal indictment unsealed late Tuesday.

China Zhongwang Holdings Ltd., Asia’s largest aluminum extrusion company, and Zhongtian Liu, 55, former president and chairman, are also accused of engineering bogus sales of the aluminum to related entities to inflate the company’s revenues and deceive investors, authorities announced.

“The aluminum sold to United States-based companies controlled by Liu were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets, which would be finished goods not subject to the duties,” according to the indictment. “In reality, there were no customers for the 2.2 million pallets imported by the Liu-controlled companies between 2011 and 2014, and no pallets were ever sold,” the U.S. attorney said in a statement.

Authorities added that the aluminum was shipped through Southern California ports and stockpiled in local warehouses that were owned by companies under Liu’s control.

Read more: https://www.latimes.com/california/story/2019-07-31/zhongwang-holdings-aluminum-smuggling-indictment



This is a weird one.

7 replies, 1351 views

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Reply Chinese billionaire faces charges in $1.8-billion scheme to smuggle aluminum through L.A. (Original post)
Zorro Jul 2019 OP
NewDayOranges Jul 2019 #1
Lochloosa Jul 2019 #4
safeinOhio Jul 2019 #2
bucolic_frolic Jul 2019 #3
Wellstone ruled Jul 2019 #5
nitpicker Aug 2019 #6
jmowreader Aug 2019 #7

Response to Zorro (Original post)

Wed Jul 31, 2019, 05:06 PM

1. Wait! Smuggling aluminum is a THING?!?!

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Response to NewDayOranges (Reply #1)

Wed Jul 31, 2019, 05:41 PM

4. Avoid paying $1.8 billion in tariffs. Sounds like a thing.

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Response to Zorro (Original post)

Wed Jul 31, 2019, 05:12 PM

2. What did Mrs. MoscowMitch know...

and when did she know it?

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Response to Zorro (Original post)

Wed Jul 31, 2019, 05:15 PM

3. Trump Tariffs are equivalent to a Tax on Tea

Smuggling is the answer to a lot of government regulation. Funny how Trump will let corporations do what they please, but puts tariffs on foreign goods so US consumers pay more.

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Response to Zorro (Original post)

Wed Jul 31, 2019, 05:50 PM

5. It only took ten plus years

 

to bring this Guy to Justice?

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Response to Zorro (Original post)

Thu Aug 1, 2019, 11:34 AM

7. Not only tariff dodging but stock manipulation

China is the only country in the world that’ll execute you for financial crimes. I’d be worried if I was them.

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