A sweeping indictment has been handed down by a federal grand jury against a cadre of individuals and companies accused of a customs evasion scheme that cost the U.S. more than $109 million in lost duties. Among those indicted are Bay Area businessmen Xin Mian Pan, known to some as "Henry Pan," Hua Liang Xie, also referred to as "Nolan Xie," and Jinhua Wang, a Chinese national, also known as "Johnson Wang." Their companies, Uni-Tile & Marble, Inc., Uni-Stone & Cabinet, Inc., and the China-based Shenzhen Top & Profit International Forwarding Co. Ltd, are also implicated in the alleged fraudulent activities. According to the Department of Justice, Pan was arrested and has already appeared in court.
The indictment, unveiled on Wednesday and made public recently, charges the defendants with a range of serious offenses, including conspiracy, wire fraud, smuggling, making false statements to enter goods, and international money laundering. Xie’s role as a licensed customs broker is particularly troubling given his part in filing false entry summaries. The indictment alleges that from September 2018 to August 2023, these individuals and their companies employed tactics such as transshipment through Malaysia, misclassification of goods, and the use of shell companies—all to evade the steep anti-dumping and countervailing duties imposed on imports from the People’s Republic of China. The Department of Justice notes that these duties were established to mitigate harm to U.S. manufacturers and workers by foreign goods dumped on the market at unfairly low prices.
According to the Department of Justice, U.S. Attorney Craig H. Missakian stressed the impact of such schemes on the economy and lawful businesses, saying, "The alleged scheme cheated the United States out of hundreds of millions of dollars in customs duties and harmed honest businesses that play by the rules." The investigation into their activities was a multi-agency effort, highlighting the gravity of their alleged criminal behavior and the resolve of the U.S. government to combat trade fraud.
Beyond mere evasion of duties, the allegations reach into the realm of sophisticated financial fraud. Tatum King, Special Agent in Charge at HSI San Francisco, emphasized the full range of charges, which underscores the supposed severity of the defendants' actions, stating, per the Department of Justice, "Today’s indictment demonstrates our unwavering commitment to holding accountable those who seek to undermine the integrity of our financial and trade systems." The case against Pan and his co-defendants involves approximately 520 shipments, with potential penalties that could result in years of imprisonment if convicted. Meanwhile, Customs and Border Protection has issued a hefty pre-penalty notice, tentatively finding Pan and Uni-Tile & Marble complicit in fraudulently entering goods by means of false statement.
For now, Pan remains in federal custody, with his next appearance scheduled for a detention hearing today, before U.S. Magistrate Judge Thomas S. Hixson. It is important to note, however, that an indictment is not a conviction, and all defendants are considered innocent until proven guilty in a court of law.
