Tuesday, April 20, 2021

Los Angeles fashion company agreed $118 million fine for customs fraud


business in the Los Angeles Fashion District and its owner have agreed to pay nearly $118 million and plead guilty to defrauding the government by undervaluing imported clothing and cheating on taxes, authorities said Wednesday.

Sang Noh of Los Angeles agreed to plead guilty to conspiracy and subscribing to a false tax return, charges that carry a potential maximum sentence of eight years in federal prison, according to a statement from the U.S. attorney’s office.

His company, Ambiance Apparel, agreed to plead guilty to eight charges, including conspiracy, money laundering and customs violations.

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Noh and his company were charged after raids in 2014 that targeted money laundering in the Fashion District.

Prosecutors said Ambiance imported clothing from Asian countries and submitted phony customs invoices that undervalued the shipments so it wouldn’t have to pay the full amount of tariffs. The firm also was accused of concealing more than $11 million in cash sales.

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