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LA Fashion District firm, 2 executives sentenced for schemes to avoid millions in customs duties and to launder narcotics proceeds
['City News Service']
Pasadena Star News
LOS ANGELES — A Fashion District wholesaler and two of its executives have been sentenced for ducking more than $8 million in customs duties and using a cross-border money laundering system to avoid reporting over $17 million in suspected narcotics proceeds, federal authorities said Tuesday.
The three defendants were found guilty in Los Angeles federal court in October 2024 of dozens of felonies.
The judge also fined CTJ $11.5 million and ordered it to pay more than $15 million in restitution.
CTJ was found guilty of an additional two concealment money laundering counts involving drug proceeds.
Lance Rhew was found guilty of one additional count of aiding, assisting and procuring the filing of a false tax return.