(Jessica Fino – Economia)
The cashmere brand agreed to pay $900,000 (£647,500) to the US government after whistleblower Andrew Patrick accused the company of “fraudulently and systematically” avoiding to pay US customs duties on its goods shipped from the UK to US customers.
Patrick, a UK citizen, worked at Pure Collection between 2010 and 2014 and brought information about the company’s practices to the law firm Constantine Cannon. As a result, Patrick will be awarded 18% of the total settlement.
The lawsuit accused the company of attempting to attract more US-based customers by engaging in a practice commonly known as “splitting”.
Patrick said he was trained to systematically split customers’ large orders to avoid paying US customs fees, saving the company millions of dollars. Click here to read more.