Watch CBS News

Feds To Share $20.5M In Seized Assets With Chinese In Smuggled Clothing Probe

LOS ANGELES (CBSLA.com) — An investigation originally launched by the former U.S. Customs Service in 2000 has uncovered what is believed to be the largest commercial fraud scheme ever uncovered on the West Coast.

Federal authorities announced $20.5 million in assets -- bank funds and the proceeds from the sale of property -- seized from the suspects in connection with the smuggling scheme will be shared with the Hong Kong Special Administrative Region.

The shared investigation revealed more than 7,000 shipping containers of apparel, worth more than $600 million, being illegally imported into the United States.

Most of the apparel was denim clothes and velour track suits, but also contained Dockers-style cotton pants ordered by a well-known US-based men's clothing company, according to Immigration and Customs Enforcement spokeswoman Virginia Kice. Kice did not identify the company.

The smuggled clothes were not counterfeit, but were mislabeled as being shipped to Mexico before being actually delivered to buyers throughout the U.S., in order to avoid import duties and quotas.

So far, five people, including the owner of a Los Angeles-area trucking company, have been federally charged in connection with the case.

Armando Salcedo, 53, owner of Friends Global Logistics trucking company, pleaded guilty in 2008 to making false customs declarations and smuggling. In addition to receiving an 18-month prison term, Salcedo forfeited nearly $5 million in personal property and other assets to the federal government, including his Downey residence and a warehouse in Commerce.

The remaining four defendants -- including Pang Hum Lin aka Albert Lin, the owner of several apparel manufacturing companies in China and Hong Kong -- remain at large and are considered fugitives.

(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.