Hong Kong jewelry company fined $800,000 for fraud

AP News
Posted: Aug 24, 2012 8:18 PM
Hong Kong jewelry company fined $800,000 for fraud

ANCHORAGE, Alaska (AP) — A Hong Kong jewelry company has been fined $800,000 for defrauding U.S. Customs of more than $1 million.

Fai Po Jewellery (H.K.) Co. LTD entered its plea and was sentenced Friday in U.S. District Court in Anchorage.

The company also must pay just over $1 million in restitution and the costs of the investigation, more than $144,000.

The U.S. attorney's office for Alaska says in a release that the company prepared two invoices for every shipment of gold to U.S. buyers. One with the true amount was sent to the buyer, but a smaller invoice that undervalued the goods was sent with the shipment through customs.

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Officials say by doing that, the company avoided full payment of U.S. Customs duties from March 2007 through October 2009.