CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
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
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
