The U.S. Department of Justice announced Oct. 7 that it has filed a civil fraud lawsuit against building materials distributor Uni-Tile & Marble Inc. and CEO Xin Mian Pan, seeking approximately $290.5 million in unpaid customs duties and penalties.

The suit, filed in the U.S. Court of International Trade, seeks $67.9 million in unpaid duties on Chinese merchandise and $222.5 million in fraud penalties.

Founded in 2007, Uni-Tile & Marble is a wholesale and retail building materials distributor based in Hayward, CA. Its website lists more than 100,000 square feet of showroom and warehouse space, with products including stone and quartz countertops, cabinets, flooring, porcelain tiles, shower products and faucets. The company says it supplies customers and partners nationwide.

The government alleges that between September 2018 and August 2023, the defendants used fraudulent shipping arrangements, understated merchandise values and inaccurate product descriptions to avoid duties on 503 import entries. Products included wooden cabinets and vanities, quartz surfaces and ceramic tiles.

According to the complaint, the alleged scheme initially involved routing Chinese merchandise through Malaysia and falsely declaring Malaysia as its country of origin. After U.S. Customs and Border Protection opened a formal investigation in March 2022, the defendants allegedly switched to shell companies as importers of record to conceal their involvement while continuing to evade duties.

The complaint alleges the practices avoided antidumping, countervailing and Section 301 duties. It seeks to hold the company and Pan jointly responsible for the unpaid duties and penalties, plus interest.

The civil action follows criminal charges announced Dec. 18, 2025, against Pan, Uni-Tile and other parties concerning the alleged duty-evasion scheme. Those charges included conspiracy, wire fraud, smuggling and international money laundering.

DOJ said the civil claims remain allegations, with no determination of liability.