Scoular Company admits to authorizing $400,000 in bribes to ensure grain shipments crossed border, avoiding $6.5 million in costs
OMAHA, Neb. — The Scoular Company, an agricultural supply chain firm based in Omaha, has agreed to pay more than $10 million to resolve a federal investigation into a yearslong scheme in which it authorized bribes to Mexican officials to facilitate cross-border train shipments, the Justice Department announced today.
The company entered into a three-year deferred prosecution agreement in connection with a criminal information filed in the Western District of Texas charging Scoular with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act.
Between 2013 and 2019, Scoular relied on multiple customs brokers to ensure that shipments of corn and other products successfully crossed from the United States into Mexico, according to court documents. Under Mexican law, those shipments were subject to inspection for dirt, soil, and other impurities.
To ensure that its shipments successfully transited the border despite inspections that found such contaminants, Scoular authorized third-party customs brokers to bribe Mexican officials at the border. At the direction of Scoular employees, and for the company’s benefit, those brokers paid bribes of approximately $2,000 per train and invoiced the bribes back to Scoular for reimbursement as “reinspection fees,” which Scoular paid.
Scoular employees communicated about shipments and bribes via WhatsApp and other means. In total, the company authorized bribes of more than $400,000 and avoided fees and costs exceeding $6.5 million.
As part of the deferred prosecution agreement, Scoular agreed to pay a $9,769,521 criminal penalty and $414,351 in forfeiture. The company also committed to implementing a compliance and ethics program designed to prevent and detect FCPA violations and will periodically report to the department on remediation efforts throughout the three-year term.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division emphasized the broader implications of the conduct.
“The Scoular Company used customs brokers as part of a long-running scheme at the Mexican border to pay more than $400,000 in bribes to Mexican officials,” Duva said. “A portion of those bribes ultimately benefited people who helped operate a cartel, even though Scoular did not know about it. This resolution shows that bribery and corruption not only undermine fair play and competition for Americans, but also hurt our national security interests in stopping the scourge of dangerous cartel activity.”
U.S. Attorney Justin R. Simmons for the Western District of Texas underscored the national security risks tied to cross-border corruption.
“Nothing crosses into or out of Mexico without the approval and payment to Mexican drug cartels. American businesses that engage in any cross-border trade bear a significant amount of responsibility to do so without benefitting those cartels and without threatening our national security,” Simmons said. “The bribery scheme in which the Scoular Company engaged demonstrates the dangerous corporate corruption we in the Western District of Texas are committed to fighting on behalf of the American people.”
The company did not receive voluntary disclosure credit under the Justice Department’s Corporate Enforcement and Voluntary Self-Disclosure Policy because it did not voluntarily and timely disclose the conduct. However, Scoular received cooperation credit for conducting an internal investigation, providing evidence, identifying those involved, and securing counsel for current employees. The company also engaged in extensive remedial measures, including eliminating the use of customs brokers associated with reinspection fees in Mexico, strengthening compliance oversight, and implementing enhanced training and third-party screening procedures.
In a related case, customs broker Carlos Leopoldo Alvelais, who paid bribes on behalf of Scoular, pleaded guilty to conspiracy to violate the FCPA on Oct. 23, 2025. His sentencing is scheduled for July 20.
Packaging Company and CEO to Pay $7.3 Million for Evading Customs Duties on Chinese-Made Bags
Redi-Bag USA allegedly misrepresented country of origin to avoid up to 77.57% antidumping duties on polyethylene retail carrier bags
NEW YORK — A New York-based packaging supplier and its chief executive have agreed to pay $7.3 million to resolve allegations that they evaded customs duties by falsely claiming that bags imported from China were actually manufactured in Hong Kong, federal prosecutors announced today.
New York Packaging II LLC, doing business as Redi-Bag USA, and CEO Jeffrey Rabiea settled claims that they violated the False Claims Act by misrepresenting the country of origin of polyethylene retail carrier bags on customs entry forms, thereby evading antidumping duties owed to the United States.
During the relevant time period, such bags from China were subject to antidumping duties of up to 77.57% on their value, according to the settlement agreement.
The government alleged that Redi-Bag USA and Rabiea knew the bags were manufactured in China and transshipped through Hong Kong, but nonetheless misrepresented Hong Kong as the country of origin on customs forms. The scheme involved hiding information from the company’s customs broker and U.S. Customs and Border Protection, directing employees to cover up “Made in China” markings, and instructing the manufacturer to remove such markings. The company also allegedly canceled orders after learning they would be inspected by customs authorities.
“Companies that benefit from access to U.S. markets must follow U.S. law, including by paying import duties that protect American manufacturers and workers from unfair foreign competition,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department will hold accountable those who evade duties owed to the United States.”
U.S. Attorney Robert Frazer for the District of New Jersey emphasized the importance of antidumping duties in protecting American economic interests. “Antidumping duties help protect American taxpayers, workers, and businesses,” Frazer said. “This settlement agreement shows that our Office will continue to vigorously investigate and pursue allegations that businesses are evading those duties through unlawful conduct.”
The settlement resolves a civil lawsuit filed by John Maierhoffer, a former contracted sales representative for Redi-Bag USA, under the False Claims Act’s whistleblower provision. Maierhoffer will receive approximately $1,332,250 of the settlement proceeds.
CBP Commissioner Rodney S. Scott said the resolution demonstrates the government’s commitment to enforcing trade laws. “CBP ensures that all companies comply with U.S. customs and trade laws,” Scott said. “With this settlement, we are protecting the integrity of our nation’s borders and holding those who attempt to evade customs duties accountable.”
The claims resolved by the settlement are allegations only, and there has been no determination of liability, the Justice Department noted.
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