SourcingDec 30, 2025
India Chosen as KP Chair for 2026It marks the third time the country has headed the Kimberley Process. Ghana will serve as vice chair.
MajorsJun 27, 2018
Temple St. Clair to Pay Government $796K+ in Customs Case
A former inventory manager for the jewelry brand blew the whistle on the company, claiming it was not paying what it should in import duties.
New York--Jewelry brand Temple St. Clair has agreed to pay the U.S. government nearly $800,000 after settling a suit involving failure to pay customs duties and inventory that was not properly marked.
A former inventory manager for the jewelry brand was the one who brought the case under the False Claims Act. The act allows whistleblowers, also known as relators, to file a lawsuit on behalf of the government to recover money an individual or business has avoided paying to the United States. If the government successfully recovers the money, then the whistleblower receives a portion of that recovery.
The ex-employee filed her complaint in the U.S. District Court for the Southern District of New York against Temple St. Clair LLC and three individuals--jewelry designer and brand founder Temple St. Clair Carr; her husband and brand President Paul Engler; and Vice President of Sales Jamie McGrath--in June 2015.
The settlement was filed June 21. It and the original suit were unsealed the following day. (Suits brought under the False Claims Act are required to be sealed in order to protect the investigation.)
According to court documents, the whistleblower was responsible for preparing customs documents for the import and export of jewelry and loose gemstones during her time at Temple St. Clair. Her complaint outlined several schemes allegedly undertaken by the jewelry brand to evade or underpay U.S. customs duties.
In addition, the U.S. government filed a complaint-in-intervention, which allows a third party to join the plaintiff in a complaint, containing similar allegations.
The complaint alleges that between 2011 and 2017, Temple St. Clair LLC underreported the value of goods imported from Italy, Sri Lanka and Thailand; obtained duty-free treatment on some imported jewelry that didn’t qualify; and failed to declare to Customs and Border Protection jewelry brought into the U.S. for commercial purposes, thereby unlawfully avoiding payment of customs duties.
The complaint also stated that the company, “failed to affix permanent markings to jewelry manufactured in Sri Lanka or Thailand identifying the jewelry’s country of origin” when it entered the U.S., then sold the jewelry to retailers without any markings indicating country of origin.
(Title 19, U.S. Code, Section 1304 requires jewelry be permanently marked with the country of origin at the time of import.)
According to Sanford Heisler Sharp, the law firm that represented the whistleblower, the case is thought to be the first in New York in
which money was recovered for the U.S. government based on the defendant’s failure to properly mark its products with their country of origin.
Temple St. Clair LLC admitted to and accepted responsibility for failing to pay customs duties, both in court papers and in a statement emailed to National Jeweler Tuesday.
Engler said in the brand’s statement to National Jeweler: “For over 30 years, Temple St. Clair has designed, created and shipped tens of thousands of pieces of jewelry throughout the world, including to and from the United States, Europe, and Asia. Our global operations have required us to learn and adhere to multiple countries’ complex regulations regarding import duties and country of origin marking. Despite our careful compliance, United States Customs claimed that we had misinterpreted some regulations, and, in particular, a United States trade preference program.”
He said the allegations “represented a small piece of (their) business” and they cooperated with the investigation and found the government to be correct.
Engler added that the government found no evidence of intentional wrongdoing and that the brand, in addition to paying the money owed, will further identify and apply best practices and policies to make sure all future import duties are accurately calculated and paid.
“As we move forward with those initiatives, we have been and continue to be proud to support and nurture some of the best artisanal goldsmiths in the world and to bring timeless jewels of uncompromising craftsmanship and materials to our clients,” the statement concluded.
U.S. District Judge Katherine Polk Failla awarded a judgment of $796,000 to the U.S. government, as well as post-judgment interest at the rate of 12 percent per year compounded daily.
In addition, Temple St. Clair agreed to affix permanent markings identifying country of origin to all its jewelry going forward.
Temple St. Clair LLC admitted to and accepted responsibility for failing to pay customs duties, both in court papers and in a statement emailed to National Jeweler Tuesday.
Engler said in the brand’s statement to National Jeweler: “For over 30 years, Temple St. Clair has designed, created and shipped tens of thousands of pieces of jewelry throughout the world, including to and from the United States, Europe, and Asia. Our global operations have required us to learn and adhere to multiple countries’ complex regulations regarding import duties and country of origin marking. Despite our careful compliance, United States Customs claimed that we had misinterpreted some regulations, and, in particular, a United States trade preference program.”
He said the allegations “represented a small piece of (their) business” and they cooperated with the investigation and found the government to be correct.
Engler added that the government found no evidence of intentional wrongdoing and that the brand, in addition to paying the money owed, will further identify and apply best practices and policies to make sure all future import duties are accurately calculated and paid.
“As we move forward with those initiatives, we have been and continue to be proud to support and nurture some of the best artisanal goldsmiths in the world and to bring timeless jewels of uncompromising craftsmanship and materials to our clients,” the statement concluded.
U.S. District Judge Katherine Polk Failla awarded a judgment of $796,000 to the U.S. government, as well as post-judgment interest at the rate of 12 percent per year compounded daily.
In addition, Temple St. Clair agreed to affix permanent markings identifying country of origin to all its jewelry going forward.
More on Majors
The Latest
WatchesDec 30, 2025
Bulova, Stetson Collab on Watches With Western FlairThe new Bulova x Stetson designs highlight two animals often associated with the American West—the bison and the Texas Longhorn.
CollectionsDec 30, 2025
Rahaminov Diamonds Pops Up in FloridaIts residency at Yamron Jewelers will run through May 2026.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
IndependentsDec 29, 2025
In Memoriam: Industry Friends We Lost in 2025From influential executives to innovative designers, we pay tribute to the people we said goodbye to this year.
Weekly QuizDec 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsDec 29, 2025
Nanis Opens First Flagship Store The Italian brand has opened its first flagship amid the peaks of the Dolomites in Madonna di Campiglio, Italy.
SourcingDec 29, 2025
‘Unearthed: Raw Beauty’ Exhibition Opens at LA MuseumThe new curation at the Natural History Museum of Los Angeles County showcases rare gem and mineral specimens in their uncut, natural state.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
CrimeDec 24, 2025
LA Jewelry District Couple Pleads Guilty to Hiding Millions from IRSThe couple pleaded guilty to concealing at least $127 million in cash transactions at its precious metals businesses.
SurveysDec 24, 2025
Consumer Confidence Falls Again in DecemberConsumers shared concerns about prices, inflation, tariffs, trade, and politics in the survey’s write-in response section.
AuctionsDec 24, 2025
Bonhams to Open New U.S. Flagship in NYCIn February 2026, the auction house will move its headquarters to the former Steinway Hall, a neoclassical landmark on Billionaires’ Row.
Events & AwardsDec 24, 2025
NYC Jewelry, Antique, & Object Show Announces Winter EventThe new show will take place Jan. 23-25, 2026.
SourcingDec 23, 2025
Mining Titan Brian Gilbertson Dies at 82The former BHP Billiton leader and Gemfields chairman is remembered for his influential leadership throughout his 50-year mining career.
Events & AwardsDec 23, 2025
Bulgari Reimagines Costume Designers Guild AwardThe LVMH-owned brand has partnered with the costume design union to revamp its award for 2026.
MajorsDec 23, 2025
Kering to Acquire Stake in Raselli Franco GroupThe luxury titan inked a deal to acquire an initial minority stake in the jewelry manufacturer with a pathway to full ownership by 2032.
MajorsDec 23, 2025
For Future Reference Vintage Enters Bloomingdale’sThe company’s curation of unsigned vintage and estate jewelry debuted at the Bloomingdale’s in Costa Mesa, California.
CrimeDec 22, 2025
Customs Seizes Hundreds of Fake Rolex, Cartier WatchesIn the recent multi-shipment seizure, CBP also found counterfeit Audemars Piguet, Moncler, and Chrome Hearts items.
EditorsDec 22, 2025
How Helzberg Is Reimagining Its StoresHelzberg’s Chief Retail Officer Mitch Maggart shared details about its tests of a new store concept rooted in an elevated luxury experience.
Recorded WebinarsDec 22, 2025
2025 Jewelry Rewind: Looking Back on an Eventful Year Jewelers of America execs and National Jeweler editors discuss tariffs, the sky-high gold price, and the engagement that broke the internet.
MajorsDec 19, 2025
MadaLuxe Group Acquires Ippolita The luxury goods company said founder Ippolita Rostagno will remain at the brand’s helm.
MajorsDec 19, 2025
LVMH Names New Bulgari CEOLaura Burdese, who joined the Italian luxury brand in 2022, will take on the role in July.
EditorsDec 19, 2025
2025 Jewelry Superlatives: A Yearbook-Style Year in Review The National Jeweler editors revisit the most noteworthy industry happenings and design trends from 2025.
AuctionsDec 19, 2025
Jean Schlumberger’s ‘African Cat’ Is Purr-Fection Need a gift for the cat lover who has everything? Look no further than our latest Piece of the Week.
AuctionsDec 18, 2025
Audemars Piguet Reclaims Historic Pocket Watch at AuctionIt purchased the “Grosse Pièce,” an ultra-complicated Audemars Piguet pocket watch from the ‘20s, for a record-breaking price at Sotheby’s.
Lab-GrownDec 18, 2025
Kira Jewels Debuts Custom Lab-Grown Diamond Jewelry ServiceThe lab-grown diamond grower now offers custom engagement and fashion jewelry through its Kira Custom Lab Jewelry service.
EditorsDec 18, 2025
Terry Chandler Looks Back on 40 Years of Opportunity, Change, and FriendsChandler got his start at Michelson Jewelers and has served as DCA president and CEO since 2001. He will retire at the end of the month.
WatchesDec 18, 2025
Bob’s Watches to Open Store in New York’s JFK AirportThe boutique is slated to open this week inside Terminal 8, offering pre-owned Rolex watches and more to international travelers.
