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“Calif. Retailer, Co-Founder Settle Customs Duty Fraud Suit”

Phillips & Cohen partners Stephen Hasegawa and Emily Stabile discussed their settlement with KAP7 International, an importer of swimwear and water polo equipment:

Stephen Hasegawa of Phillips & Cohen, representing the whistleblower, told Law360 that he is disappointed the settlement amount is not higher.

“The reason we settled for the amount settled for, was that the company didn’t have enough money to pay more,” Hasegawa said. “So it doesn’t make the government whole, in my view, and that sort of rubs me the wrong way.”

“It is ironic that KAP7 avoided paying import duties to the United States while touting itself as the provider of the official ball and swimwear of the USA water polo teams,” Emily Stabile, another attorney said in a statement. “Our client was brave to come forward and report the alleged customs fraud scheme.”

“In order to have a fair playing field for all manufacturers, everybody must pay the same import duties on the same products,” Hasegawa said. “Customs duties also protect United States jobs by ensuring that American manufacturers can compete on a fair basis with foreign manufacturers.”

Read the full article, “Calif. Retailer, Co-Founder Settle Customs Duty Fraud Suit,” Law 360, November 8, 2023.

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