Hong Kong jewelry company fined $800,000 for fraud

August 24, 2012 - 7:40 PM

ANCHORAGE, Alaska (AP) — A Hong Kong jewelry company has been fined $800,000 for defrauding U.S. Customs of more than $1 million.

Fai Po Jewellery (H.K.) Co. LTD entered its plea and was sentenced Friday in U.S. District Court in Anchorage.

The company also must pay just over $1 million in restitution and the costs of the investigation, more than $144,000.

The U.S. attorney's office for Alaska says in a release that the company prepared two invoices for every shipment of gold to U.S. buyers. One with the true amount was sent to the buyer, but a smaller invoice that undervalued the goods was sent with the shipment through customs.

Officials say by doing that, the company avoided full payment of U.S. Customs duties from March 2007 through October 2009.