Allied Stone Inc., a company based in Dallas, Texas, and its President, Jia “Jerry” Lim, have agreed to pay $12.4 million to settle claims that they cheated the U.S. government on import duties. The company and Lim were accused of intentionally avoiding antidumping and countervailing duties on quartz surface products imported from China over more than four years.
According to the U.S. Attorney’s Office in the Northern District of Texas, Allied Stone and Lim misrepresented these Chinese quartz products as other materials like marble or crystallized glass. These misleading labels helped them dodge higher import taxes meant to protect American industries from unfair competition. They also allegedly failed to declare and pay the proper duties themselves and did not ensure that others involved in the import process did either.
The allegations cover imports made between September 2018 and February 2023. The case came to light through a whistleblower, Melinda Hemphill, who filed a lawsuit under the False Claims Act. This law allows private citizens to report fraud against the government and share in any financial recovery.
This settlement highlights ongoing efforts to enforce trade laws and ensure companies pay the duties they owe. Avoiding such fees puts U.S. manufacturers at a disadvantage. The $12.4 million payment aims to hold Allied Stone and Lim accountable for their actions and discourage similar behavior in the future.