Men charged in Seattle, Chicago with honey fraud

SEATTLE -- Three men find themselves in a sticky situation in federal court: Prosecutors say they faked the origin of honey they imported from overseas to avoid paying $3.3 million in tariffs.

Chung Po Liu, 68, of Bellevue, turned himself in in Seattle on Wednesday, and two of his alleged co-conspirators were arrested in Los Angeles. Liu is charged with conspiracy to defraud the United States by claiming the honey they imported was from Thailand or the Philippines, when it was really from China.

Chinese honey has been subject to anti-dumping tariffs -- tariffs imposed to protect U.S. goods from unfair competition overseas -- since 2001. The current rate is 221 percent.

The two men arrested in Los Angeles are Yong Xiang Yan, the president of the Chinese honey company, who is charged in federal court in Chicago, and Boa Zhong Zhang, its longtime employee, who is charged in Seattle.

Conspiracy is punishable by up to 5 years in prison and a $250,000 fine.