Honey importer sentenced to 30 months for conspiring to evade US import duties

INTELLECTUAL PROPERTY RIGHTS

11/05/2010

 

Honey importer sentenced to 30 months for conspiring to evade US import duties

CHICAGO - A Taiwanese executive of several honey import companies was sentenced to 30 months in prison Friday for conspiring to avoid more than $5 million in U.S. anti-dumping duties by illegally importing Chinese-origin honey that was falsely identified as coming from South Korea, Taiwan, Thailand and India. This sentence resulted from an investigation conducted by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI).

Hung Ta Fan, aka Michael Fan, 40, was sentenced Nov. 5 in the Northern District of Illinois to 30 months in prison and was ordered to pay $5,378,370 in restitution. He pleaded guilty to the charges in August, pursuant to a cooperation agreement with the government.

Fan, a Taiwanese national, owned and operated multiple California-based honey import companies, including Blue Action Enterprise, 7 Tiger Enterprises, Kashaka USA, and Honey World Enterprise. He used these companies to fraudulently import Chinese honey into the United States. Fan admitted that between 2005 and 2006 he conspired with others to illegally bring into the United States 98 shipments of Chinese honey to avoid paying anti-dumping duties of about $5,378,370 due to the U.S. government.

"Mr. Fan and others deliberately mislabeled 98 shipments of honey in an effort to rob the U.S. government of more than $5 million in tariffs," said ICE Director John Morton. "Our domestic honey industry is economically threatened when importers illegally dump low-cost Chinese honey into the U.S. marketplace. This prison sentence sends a strong message domestically and internationally that ICE's Homeland Security Investigations aggressively investigates criminals who conceal the true origins of their products in the name of greed."

In his plea, Fan further admitted that in 2009 he conspired with others to fraudulently import about $8 million of honey that was diluted and blended with 20 to 30 percent artificial sugar. He admitted to adding artificial sugar to the honey in an effort to obtain a higher price and profit margin than if the shipments contained pure honey. Fan used his company Kashaka USA to bring in the diluted, blended honey.

Fan was arrested April 1 in Los Angeles as he arrived at the Los Angeles International Airport. He has remained in federal custody since his arrest. After serving his sentence, Fan will be turned over to ICE and placed into deportation proceedings.

Assistant U.S. Attorneys Andrew S. Boutros and William R. Hogan, Northern District of Illinois, prosecuted this case.