IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom DixonAs chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.
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
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper FlaggThe parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
SourcingOct 14, 2025
Pragnell Debuts Kitulo Garnet Jewelry The UK-based brand sourced the gemstones, which are fully traceable, from an artisanal mining community in Tanzania.
Weekly QuizOct 09, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent CalendarsThe trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.
Brought to you by
JA New York Fall Is Right Around the CornerThe upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.
SourcingOct 09, 2025
Feriel Zerouki Is Leaving De Beers The company and industry leader’s two-decade tenure with De Beers will come to a close at the end of the month.
AuctionsOct 09, 2025
This Fabergé Egg Could Crack $27M At Auction“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.
CollectionsOct 09, 2025
Katkim Launches First Men’s CollectionThe line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.
SourcingOct 09, 2025
Gemfields’ Mini Mixed-Quality Ruby Auction Garners $11MThe rough on offer was recovered from a newer area at the Montepuez mine.
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.
CollectionsOct 08, 2025
Emily P. Wheeler Shifts Into Neutral for Latest ‘Ombré’ CollectionThe champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.
CollectionsOct 08, 2025
Tsuba Designs Inspire Monica Rich Kosann’s New CharmsKosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.
CrimeOct 07, 2025
Men Who Posed as Utility Workers Found Guilty in Jeweler’s MurderCarlos Jose Hernandez and Joshua Zuazo face life in prison for the October 2024 murder of 72-year-old Detroit-area jeweler Hussein Murray.
CollectionsOct 07, 2025
Jessica McCormack Looks to Sea Spirits for ‘Tempest’ CollectionThe brand’s first high jewelry collection, “Tempest” plays with movement while calling to mind the folklore of the sea.
SourcingOct 07, 2025
Columbia Gem House Announces ‘Opals for Outback Heroes’ FundraiserProceeds from its jewelry raffle will go to a volunteer-run fire and rescue group in the Lightning Ridge area of New South Wales, Australia.
MajorsOct 07, 2025
Stuller Names Its S.E.R.V.E Stars for 2025Stuller said the recipients embody the company’s core values, which include community participation and personal and professional growth.
WatchesOct 06, 2025
This Fall, Citizen’s Forecast Calls for RainCitizen’s new “Rainell” women’s watch has a raindrop-shaped case and is available with a silver-, gold-, purple-, or green-colored dial.
AuctionsOct 06, 2025
The ‘Rolex That Made Rolex’ Heads to Auction at Sotheby’s The “Mercedes Gleitze Rolex Oyster,” named for the British endurance swimmer who made it famous, will go up for sale next month.
GradingOct 06, 2025
GIA India Names Former De Beers Exec as New Managing DirectorAmit Pratihari was previously the managing director of De Beers India and Forevermark India.
SourcingOct 06, 2025
SoCal 24 Karat Club Integrates Into Diamond Club West CoastMembers of the Jewelers 24 Karat Club of Southern California will gain access to expanded services, resources, and connections, DCWC said.
TrendsOct 03, 2025
Selena Gomez, Benny Blanco Tie the Knot Wearing Diamonds, White MetalsGomez’s jewelry included Tiffany & Co. drop-style earrings while Blanco stacked diamonds from Jacob & Co. on his wrist.
GradingOct 03, 2025
Grading Lab HRD Antwerp Names New CEODiamond industry banking veteran Paul De Wachter will take on the role in January 2026.
TrendsOct 03, 2025
Piece of the Week: Kallati’s Pink Sapphire RingTaylor Swift flaunts an Elizabeth Taylor-esque gemstone in promo for her new album, “The Life of a Showgirl.”
CollectionsOct 02, 2025
Boucheron Debuts Cuffs Crafted With 3D-Printed SandIts “Quantre Sand” capsule was made using a 3D sand printing technique borrowed from the automotive and aeronautics industries.
