Redi-Bag USA Settles $7.3 Million Customs Fraud Case

The investigation uncovered a sophisticated operation where the New York-based packaging firm falsely declared that polyethylene retail carrier bags originated in Hong Kong rather than China. By mislabeling the shipments, the defendants successfully bypassed U.S. import tariffs designed to protect domestic manufacturers. According to the Whistleblower Law Collaborative, which represented the whistleblower, the company also physically removed "Made in China" markings from products and diverted shipments to avoid inspections by federal authorities.

U.S. Attorney Robert Frazer noted that the case underscores a commitment to shielding American workers from unfair trade practices. The settlement brings an end to a multiyear effort by the firm’s whistleblower to expose the concealed financial activities. Legal representatives for the whistleblower highlighted that the fraud remained entirely undetected by customs officials until their client provided evidence, allowing federal investigators to secure the recovery of funds for taxpayers.