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DOJ: Los Angeles Clothing Importer Sentenced for $17 Million Tax Evasion and $8 Million Customs Fraud in Operation Take Back America
DOJ: Los Angeles Clothing Importer Sentenced for $17 Million Tax Evasion and $8 Million Customs Fraud in Operation Take Back America
October 11, 2025/
A wholesale clothing importer located in the Fashion District of downtown Los Angeles has been sentenced for avoiding the payment of more than $8 million in customs duties on imported clothing more than $17 million in tax evasion.
The scheme involved importing apparel from China and other nations and then exporting said clothing to customers in Mexico, Central America, and South America. The indictment alleges that the defendants sent 515 individual wire transfers totaling $137,156,726 to pay overseas suppliers for undervalued garments. Overall, CTJ imported goods that were undervalued by more than $51 million, causing approximately $8.4 million in unpaid tariffs and duties that should have been paid to CBP.
The president of the company was sentenced to 103 months in prison, fined $8 million dollars, and ordered to pay more than $19 million in restitution.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice for multiple initiatives including transnational criminal organizations (TCOs).
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