Denver area companies indicted for allegedly defrauding U.S. government to avoid tariffs
By Christa Swanson
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DENVER, Colorado (KCNC) — A federal grand jury has indicted two Denver-area companies and several of their top executives for allegedly claiming foreign made forklifts sold to the U.S. government were made in America to avoid paying tariffs.
A release from the Department of Justice on Tuesday said Endless Sales Inc. and Octane Forlifts Inc., as well as executives Brian Firkins and Jeffrey Blasdel and former executive J.R. Antczak, allegedly conspired to import forklifts from China and claim they were manufactured in the United States, then sell them to FEMA and the Department of Defense.
They were also indicted for allegedly conspiring with a Chinese manufacturer to create fake commercial invoices undervaluing the imported forklifts. The Department of Justice said the scam violated the Buy America Act and defrauded the government of over $1 million in tariffs, duties and fees.
“Defrauding the United States to profit from goods made in adversarial nations like China undermines our economic and national security,” said Attorney General Pamela Bondi. “The Justice Department is committed to protecting American taxpayer dollars, defending our national security against those who would undermine it, and holding accountable anyone who pursues illegal profits over our country.”
Army and Air Force representatives both condemned the scam, stating that the companies not only violated the law but disregarded national security.
Both companies and the three executives involved in the case have been charged with conspiring to commit wire fraud. The three executives have also been charged with separate wire fraud charges. Each individual count of wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. Each company could face up to a $500,000 fine.
Firkins, Blasdel, Antczak, and both companies were also charged with using false or fraudulent statements to enter goods into the United States. Each executive could serve up to five years in prison and a $250,000 fine if convicted. Endless Sales and Octane Forklifts could pay a fine of up to $500,000, twice the gain derived from the offense, or twice the loss caused by the offense.
Blasdel has also been charged with making false statements to the government and could serve up to five years in prison and pay up to a $250,000 fine if convicted.
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