Auto Parts Importer Settles Customs Fraud Whistleblower Lawsuits for $8 Million. Exposing Misconduct.

Auto Parts Importer Settles Customs Fraud Whistleblower Lawsuits for $8 Million

July 24, 2020

DETROITJuly 24, 2020 — Hoyer Law Group, PLLC, is pleased to announce an $8 million settlement of a lawsuit brought on behalf of its whistleblower client Jeffrey S. Hawk against CWD Holdings, LLC (CWD), and other defendants.

CWD, a California-based company, is one of the largest distributors of aftermarket brake and chassis parts in North America. Mr. Hawk alleged that CWD violated the False Claims Act by importing brake components from China without paying tariffs required by the Harmonized Tariff Schedule.

On July 7, 2017, Mr. Hawk, then a Controller for Centric Parts, a CWD subsidiary, filed an action in the Eastern District of Michigan under the qui tam provisions of the False Claims Act. Mr. Hawk’s complaint alleged that CWD concealed a decade-long tariff misclassification of imported brake pads from U.S. Customs and Border Protection (CBP).

Read more here.
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