OneBigOutlet allegedly evaded millions of dollars in duties on imports from China by filing commercial invoices with CBP understating its purchase prices.
California importer RGE Motor Direct Inc., which does business under the name OneBigOutlet, has paid $3.25 million to resolve allegations it fraudulently underreported the prices it paid for furniture it imported from China. The settlement ends a lawsuit brought by a qui tam whistleblower which alleged that OneBigOutlet, in coordination with its Hong Kong affiliate, Royal Sourcing Limited, violated the False Claims Act by knowingly filing false commercial invoices with U.S. Customs and Border Protection, thereby skirting millions of dollars in Section 301 tariffs.
The whistleblower, a resident of Hong Kong who previously worked as a sourcing manager at Royal Sourcing, received a whistleblower award of 27.5% of the settlement proceeds, according to legal filings.