A New Hampshire plastics distributor has avoided criminal prosecution in a scheme to dodge tariffs on Chinese imports by falsifying origin documents. This comes after voluntarily disclosing the misconduct and paying $6.8 million to settle related civil claims.
The Justice Department credited the payment from MGI International LLC and its subsidiaries under the False Claims Act toward resolving its criminal probe under the Corporate Enforcement and Voluntary Self-Disclosure Policy. The resolution stems from efforts to evade Section 301 duties on Chinese plastic resin.
In a separate criminal case, MGI’s former chief operating officer, David Guimond, 48, of Manchester, New Hampshire, has agreed to plead guilty to one count of conspiracy to smuggle goods into the United States.
Court documents allege that in 2021, Guimond directed employees to falsify manufacturer and country-of-origin details on submissions to U.S. Customs and Border Protection to skirt the tariffs.
Guimond faces up to five years in prison, with a plea hearing to be set by a federal judge.
“As this announcement demonstrates, the department will hold to account individuals and corporations who lie to evade tariffs and duties,” said Deputy Attorney General Todd Blanche. “This resolution makes clear what the incentives for corporations are to voluntarily self-disclose and remediate identified criminal conduct.”
“David Guimond is charged with lying to avoid paying customs duties to enrich his companies and himself,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Trade fraud deprives the government of revenue and harms American manufacturers. This corporate resolution and plea agreement demonstrate that the Criminal Division will hold accountable those who defraud the public fisc.”
“Our systems of commerce depend on the fair and accurate application of tariffs,” said Special Agent in Charge Michael J. Krol for Immigrations and Customs Enforcement Homeland Security Investigations (HSI) New England.
“When bad actors attempt to evade these tariffs, they undermine the integrity of our trade system and disadvantage honest businesses. We are committed to enforcing tariff regulations and will relentlessly pursue those who seek to circumvent them. This company worked with the government to bring past violations to light and cooperated fully with our investigations. Their actions highlight the importance of corporate responsibility and the value of transparent self-disclosure in maintaining the integrity of our tariff enforcement efforts.”
The department cited MGI’s prompt self-reporting, extensive cooperation, offense severity, remedial steps — such as firing involved staff, internal reviews, and compliance upgrades — and lack of aggravating factors in opting for the declination. The company has also repaid the tariffs it dodged.
Homeland Security Investigations handled the probe, with prosecution by Criminal Division Fraud Section trial attorneys Jennifer Bilinkas and Siji Moore, plus Assistant U.S. Attorney Yasir Sadat in New Hampshire.
The matters were managed via the Justice Department’s Trade Fraud Task Force, a multi-agency initiative targeting tariff evasion and smuggling to safeguard government revenue and economic fairness.