Prosecutors: San Diego customs fraud topped $10M - 13 WTHR Indianapolis

Prosecutors: San Diego customs fraud topped $10M

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SAN DIEGO -

A federal complaint says a San Diego customs broker orchestrated a scheme to bring at least $100 million worth of Chinese textiles, Indian cigarettes and other goods to the United States without paying more than $10 million in tariffs and other fees.

The complaint unsealed Wednesday says Gerardo Chavez's scheme resulted in lost duties, taxes and other revenue for the U.S. government. Authorities say Asian goods presumably headed to Mexico were illegally unloaded at the Long Beach port.

Chavez and two other defendants were taken into custody Wednesday.

Chavez is president of the San Diego Customs Brokers Association, a trade group that represents 45 brokers doing business on California's border with Mexico. No one answered the phone at the organization's office.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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