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A federal grand jury charged two Colorado
companies and some of their executives with
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conspiring to avoid paying tariffs on forklifts
imported from China into the US.
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Court documents accused the company’s Octane
forklifts and Endless Sales,
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which does business as Discount Forklifts, of
selling the machines to federal government
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agencies as made in America, disguising their
Chinese origin.
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Individuals mentioned in the indictment include
a current executive.
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Brian Ferkins and Jeffrey Blasdell, as well as
former executive J.R. Achek.
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The DOJ also alleges that the companies and
executives collaborated with an unnamed Chinese
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company and a national to make fake invoices
that undervalued the forklifts’ cost.
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By doing so, the department estimates that
those involved defrauded the US government of
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more than $1 million in applicable fees, duties,
and tariffs.
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The grand jury charged each company and person
with conspiring to commit wire fraud.
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The individual counts carry a maximum prison
sentence of 20 years and a fine up to $250,000.
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The corporations’ counts include a maximum
penalty of $500,000.
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Additionally, the companies and executives face
charges of conspiring to enter goods into the
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US via fraudulent or false statements.
Individual counts threaten a 5 year maximum
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prison sentence and a $250,000 fine.
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The corporate maximum penalty is a $500,000
fine.
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Blasdell also faces a charge for making false
statements to the government,
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which carries a maximum penalty of 5 years in
prison and a fine of $250,000.
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If convicted, a federal district court judge
will determine sentences.
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I’m Nolan Bastein.
This is Manufacturing Now.