CALIFORNIA — A downtown Los Angeles clothing importer and two executives have been sentenced for evading $8 million in customs duties and laundering $17 million in unreported cash, the U.S. Department of Justice announced.
C’est Toi Jeans Inc. (CTJ) received five years’ probation, federal monitoring, an $11.5 million fine, and over $15 million in restitution, ordered by U.S. District Judge Mark C. Scarsi.
CTJ president and majority owner Si Oh Rhew, 71, of La Cañada Flintridge, was sentenced to 103 months in prison, fined $8 million, and ordered to pay over $19 million in restitution. His son, Lance Rhew, 38, of Los Angeles, who also served as a CTJ officer and owns GLLR Inc., was sentenced to 84 months in prison, fined $500,000, and ordered to pay restitution.
Prosecutors said CTJ and the Rhews accepted bulk cash from drug trafficking to pay customer invoices. Money couriers unrelated to CTJ delivered funds to cover invoices. The company and Si Oh Rhew failed to report cash transactions, concealed receipts from their accountant, and omitted over $17 million in sales from IRS tax returns.
The defendants evaded customs duties by importing garments, including from China, and submitting false valuations to U.S. Customs and Border Protection (CBP), lowering the duties owed. They sent 515 wire transfers totaling $137 million to overseas suppliers for undervalued garments. CTJ underreported imports by over $51 million, avoiding approximately $8.4 million in tariffs.
After a six-week trial in October 2024, a jury convicted CTJ and Si Oh Rhew of two conspiracies and multiple counts of failing to report cash transactions over $10,000. All three defendants were convicted of multiple customs fraud charges, international money laundering, and other related offenses.
