Plews & Edelmann vs. Qingdao Sunsong

Over a 2-year period, Plews conducted its own investigation into competitor Qingdao Sunsong, determining that Sunsong was transshipping products from China through Thailand to its U.S. subsidiary to evade Section 301 tariffs. The effort required collaboration with ex-Mossad investigators who conducted on-site work in Thailand, forensic accounting of Thai-based companies, analysis of original Thai import/export documentation, public document translation, and hundreds of hours systematically organizing evidence for government submission.

Plews filed a False Claims Act (FCA) case with the DOJ Central District of California and submitted a CBP e-allegation for Section 301 tariff evasion. DOJ declined to intervene in the FCA case. Plews also requested intervention from the Trade Fraud Task Force (Civil Division, DOJ).

At a field hearing in Stoughton, Wisconsin, Rep. Darin LaHood (IL-16) publicly called out Qingdao Sunsong by name, detailing the threat its tariff evasion poses to American manufacturers.

Select Committee on the CCP sends an open letter to Secretary Mayorkas (DHS) and AG Merrick Garland (DOJ), stating that Sunsong’s public disclosures “lay out a case of blatant trade fraud,” and demanding a briefing by October 13, 2023.

Department of Homeland Security raids Sunsong’s Harco subsidiary at 3535 Kettering Boulevard in Moraine, Ohio. The raid generates 70+ media articles worldwide. In the months that follow, Sunsong’s stock price on the Shenzhen exchange drops by more than half, erasing over $110 million in market capitalization.

House CCP Committee sends inquiry letters to major autoparts retailers still purchasing from Sunsong, warning of potential criminal and civil liability.

Under the new administration, the Select Committee issues a letter urging AG Pam Bondi, DHS Secretary Kristie Noem and USTR Jameson Greer to investigate transhipping, identifying Sunsong as a prime case study.

Ranking Member Ro Khanna and bipartisan lawmakers formally requested an overdue DOJ report on investigations involving CCP-linked automotive suppliers, specifically citing Qingdao Sunsong and Fuyao Glass.

Senator Bernie Moreno urged DHS to crack down on illegal transshipment by Chinese manufacturers, specifically citing allegations that Qingdao Sunsong routed products through Thailand to evade U.S. tariffs.