Apparel Smuggler Pleads Guilty
A Los Angeles trucking company owner who was involved in a massive apparel-smuggling scheme that began in China and ended in the United States has pled guilty in federal court.
On March 3, Armando Salcedo, owner of Friends Trucking and Friendly Global Logistics in Commerce, Calif., entered a guilty plea in U.S. District Court on a 34-count grand jury indictment that included smuggling charges and making false declarations. Salcedo admitted in court that he was involved in smuggling approximately 3,200 containers of Chinese-made apparel that allegedly was destined for Mexico, meaning the goods were not subject to customs duties. They were to be kept in an in-bond warehouse before being transferred to Mexican customers. U.S. Immigration and Customs Enforcement, which conducted the investigation, called it the largest commercial fraud scheme ever uncovered in the West Coast.
The indictment said that in the scheme, which lasted several years, Salcedo picked up the goods at the port, stored them in his warehouse and then delivered them to various U.S. clients.
Court documents show that Bubblegum USA, a junior wear manufacturer in Los Angeles, received 3,211 cartons of clothing. Kenko Warehouse received 1,378 cartons, and Hampshire Designers Inc. was sent 133 containers. Government officials said they didn’t believe retailers knew that garments were smuggled into the United States.
The indictment follows a long and drawn-out ICE investigation that uncovered a far-reaching smuggling scheme that brought in more than 7,000 shipping containers of apparel from China. Salcedo was personally involved in bringing in 3,200 containers of apparel valued at approximately $267 million in a scheme that ran through 2002.
In a separate indictment, Albert Lin, who has various businesses in China, was named as one of Salcedo’s co-conspirators. Lin allegedly made deals to ship Chinese-made apparel to U.S. buyers. Lin is accused of creating false shipping documents that said the goods were ultimately being sent to Mexico.
As part of his guilty plea, Salcedo agreed to forfeit nearly $5 million in assets and personal property, including his house and warehouse, to the government. He faces five years in federal prison when he is scheduled to be sentenced May 12. The investigation into Salcedo’s co-conspirators is ongoing.—Deborah Belgum
