Wisconsin Companies Pay Over $10M to Settle False Claims Suit on Chinese Imports

Wisconsin companies Precision Cable Assemblies and Global Engineered Products, along with their chief executives Ryan Schmus and Richard Horky, paid more than $10 million to settle charges they avoided millions of dollars in customs duties on Chinese goods, the U.S. Attorney's Office for the Eastern District of Wisconsin announced.

Precision Cable Assemblies sells wire harnesses, battery cables and other wiring products, while Global Engineered Products sells power distribution products, the office said. The government alleged that from 2016 to 2021 the companies submitted false invoices to CBP that undervalued their imports.

The U.S. said the companies dropped the value of the goods by 70%, avoiding over $10 million in customs duties. Global Engineered Products initially paid CBP around $4.2 million in lost customs duties, then another settlement agreement saw both companies pay $6 million.

Travis Grob, a former Precision Cable Assemblies employee, brought a whistleblower False Claims Act suit against the companies. He will receive a $1.26 million cut of the settlements.