Le Chois Executives Plead Guilty to Customs Charges

Three executives of a Pacoima company have pleaded guilty to conspiring to defraud the U.S. government by evading $2.67 million in customs duties on women’s clothing imported from Taiwan.

Martin Alan Feldman, the owner of Le Chois Inc., and Edward Talamantes and Howard Regan, former Le Chois vice presidents, entered the pleas late last month in federal court in Los Angeles.

Feldman faces a maximum sentence of 15 years in prison and a $750,000 fine, in addition to the $2.67 million in customs duties he has agreed to repay, U.S. Atty. Terree A. Bowers said in a written statement. Talamantes could be sentenced to up to 10 years in prison and fined up to $500,000. Regan faces a maximum two-year sentence and a $250,000 fine.

In addition, U.S. Customs Inspector Mark Steven Verdugo was convicted earlier this month for his part in the scheme, which included making false statements to the federal government and receiving bribes. He faces a prison sentence of up to five years and a $250,000 fine.

According to Bowers, the imported clothing was sold under the Le Chois brand name to department stores such as Broadway, the Emporium and Macy’s. Under the scheme, Le Chois would submit documents to the U.S. Customs Service that did not properly describe and undervalued its shipments, resulting in the avoidance of quota restrictions and $2.67 million in customs duties over a four-year period.