By: Richard L. Smith
George Volpe, 60, owner of New Jersey-based Penta International Inc. (Penta), has confessed to mislabeling hazardous chemicals imported from China and circumventing U.S. customs duties.
U.S. Attorney Philip R. Sellinger reported that Volpe entered his guilty plea to wire fraud charges in front of U.S. District Judge Esther Salas in Newark federal court, with his sentencing set for August 13, 2024.
The case revealed that from January 2016 to August 2021, Volpe engaged in a deceitful operation, resulting in the mislabeling of various chemicals, some of which were hazardous, thereby cheating the United States out of approximately $1.4 million in customs duties.
Federal officials said this malpractice was part of a larger scheme that saw Penta, under Volpe's leadership, participating in fraudulent activities involving the importation of chemicals from China.
In a move to rectify these wrongs, Penta has reached a civil settlement agreement, agreeing to pay $3.1 million plus interest to settle allegations under the False Claims Act.
These allegations accused Penta and its representatives of conspiring with a Chinese vendor to mislabel chemicals destined for the United States and using falsified documents for customs clearance.
By agreeing to this settlement, Penta has admitted to the mislabeling of substances during their importation process.
This case also spotlighted the whistleblower provisions under the False Claims Act, allowing private individuals to sue on behalf of the United States for false claims and share in the government's recovery.
Angel Figueroa, the whistleblower in this case, will receive $600,000 from the $3.1 million recovered in the civil settlement.
This prosecution underscores the commitment of U.S. law enforcement agencies to uphold the integrity of international trade practices and protect the public from the dangers of improperly labeled hazardous materials.