Los Angeles Clothing Company Failed to Pay $8 Million in Customs Duties

The company and two executives also used a cross-border money laundering system to avoid reporting over $17 million in suspected narcotics proceeds.

Law enforcement agents stand outside the C'est Toi Jeans clothing store after a raid in the Los Angeles Fashion District, on Sept. 10, 2014. Nick Ut/AP Photo

LOS ANGELES—A Los Angeles Fashion District clothing wholesaler and two of its executives will be sentenced in January 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 announced Wednesday.

At the conclusion of a six-week trial, a federal jury in downtown Los Angeles late Tuesday found the defendants guilty of dozens of felonies, including the company C'est Toi Jeans (CTJ) which imported apparel from China and other nations and exported clothing to customers in Mexico, Central America, and South America.