Brookfield, Wisconsin – In a stunning revelation, two Brookfield, Wisconsin-based companies, Precision Cable Assemblies, Inc. (PCA) and Global Engineered Products, Inc. (GEP), along with their owners, have been forced to cough up over $10 million to the federal government. This comes after explosive allegations surfaced, accusing the companies of running a massive scheme to evade customs duties on goods imported from China.
According to the U.S. Department of Justice, PCA and GEP are accused of submitting falsified invoices that grossly undervalued their imported goods by as much as 70%. These fraudulent invoices were passed on to their customs broker, who unwittingly submitted them to U.S. Customs and Border Protection (CBP). The companies’ scheme allegedly spanned from 2016 to November 2021, allowing them to dodge millions of dollars in duties, particularly after additional tariffs were slapped on Chinese imports in 2018.
In a move highlighting the government’s zero-tolerance policy on fraud, GEP initially paid $4.2 million in lost duties before agreeing to a settlement requiring them to pay an additional $6 million. This payout also covers their potential liability under the False Claims Act.
U.S. Attorney Gregory J. Haanstad did not mince words, stating, “This settlement sends a strong message to companies and their owners that they must follow the customs rules.” The message was echoed by LaFonda D. Sutton-Burke, Chicago’s Director of Field Operations for CBP, who warned that entities attempting to defraud the U.S. government would ultimately fail.
The whistleblower in this case, former PCA employee Travis Grob, is walking away with a hefty $1.26 million reward for his role in exposing the fraud.
As this story unfolds, it serves as a stark reminder to businesses that the federal government is watching—and no one is above the law.
