Recently, a customs broker, previously indicted for a $3.4 million fraud scheme, encounters additional charges due to an alleged $2 million fraud while on trial. Frank Seung Noah, operator of Comis International Inc., delivers a stark reminder of the vulnerabilities in the customs brokerage industry.
Noah was initially charged with a $3.4 million wire fraud scheme involving the overcharging of Daiso, a Japan-based variety store operating in the United States. The scheme resulted in the fraudulent procurement of approximately $3,379,774 and charges of evasion of $1.5 million in personal income taxes according to the U.S. Attorney's Office, Central District of California.
To awaiting for trial on bond, the superseding indictment alleges Noah defrauded two additional clients. By invoicing and receiving funds for customs duties but failing to the delivering them to CBP, the broker caused an additional $2 million in losses for the victims according to the U.S. Attorney's Office, Central District of California.t.
Although it remains to be seen what consequences Frank Seung Noah will face for his alleged crimes, his story underscores the inherent risks in the customs brokerage industry. Businesses and regulators must promote transparent reporting and increased scrutiny to ensure honesty within the industry's ranks.
