Export~lmport Bank of the United States
Of?ce of Inspector General
Of?ce of Investigations

 

 

 

 

 

CLOSING STATUS REPORT
Title: Ruff Wear, Inc. Date Opened: 1 
Case No: l9-0002?C Date Closed: 12DEC2018
Agent: (9) (6)

 

 

 

 

Allegations:

On September 13, 2018, 03) (7X0)

Export-Import Bank of the United States (EXIM), reported to the
Of?ce of Inspector General (01G), Of?ce of Investigations (01), suspected fraud
involving claim(b) (4) The claim was ?led by the exporter, Ruff Wear, Inc. (Ruff
Wear) of Bend, Oregon, for non-payment of six invoices totaling $133,563.20 under the
EXIM Bank insured transaction between Ruff Wear and Original Dog Gear of Mern,
Denmark. The claim was ?led on May 8, 2014, and paid in the amount of $1 17,296.56
on July 11, 2014.

provided information that recovery of the loss amount was assigned to Global
Recovery Group, LLC (GRG). GRG discovered that following non?payment by Original
Dog Gear, Ruff Wear sued the buyer in Oregon State Court ?seeking judgment for unpaid
invoices.? Original Dog Gear counter sued for breach of contract. GRG determined that
there was also a parallel case in Denmark. GRG provided information that in March
2014, the case was moved to Federal District Court for the District of Oregon. According
to court records obtained by GRG, the case was settled on April 4, 2014. Ruff Wear ?led
their claim with Bank approximately one month after they had reached the
settlement with Original Dog Gear. GRG requested a copy of the settlement agreement
from Ruff Wear, which they declined to provide.

This investigation is being opened to determine whether Ruff Wear?s claim following the
civil settlement constitutes a false claim or a similar criminal violation.

Closing Summam

After reviewing the supporting documents related to this investigation, 01 contacted the
United States Attorney?s Of?ce (USAO) in the District of Oregon on October 9, 2018.
01 relayed the details surrounding this investigation and the USAO agreed to open a case
into this matter. The USAO issued a grandjury subpoena on October 29, 2018 in an
attempt to obtain the details of the settlement agreement in question. Ruff Wear, Inc.
replied to this subpoena on November 9, 2018.

 

On December 11, 2018, 03?) (7X0) Of?ce of General
Counsel (OGC), EXIM Bank and Special Agent (SA) (6) EXIM Bank, Of?ce
FOR OFFICIAL USE ONLY

This report is the property of the O?ice of Inspector General The report and its contents may not be
reproduced without written permission. The report is FOR OFFICIAL USE ONLY and its disclosure to
unauthorized persons is prohibited Public ovoiiobility is to be determined by the 01G under 5 US. C. ?552.

 

Export?Import Bank of the United States
Of?ce of Inspector General
Of?ce of Investigations

CLOSING STATUS REPORT

 

 

of Inspector General (OIG), Office of Investigations (OI) conducted a conference call
with (7X0) Assistant United States Attorney (AUSA) of the District of Oregon.
The three individuals discussed (5)

After a review of the facts in this case, AUSA 03) (me) declined to pursue criminal
prosecution of Ruff Wear and its related parties. In addition, {me} did not
believe a civil case was prudent at that time. However, AUSA (mo) agreed to put
(13} in touch with Ruff Wear?s Counsel to discuss alternative remedies in this case. It
is believed thattb) (5). (7)03)

As a result, this

matter was referred back to EXIM Bank.

Based on discussions with 
this case will be closed (13) (7)050

 

FOR OFFICIAL USE ONLY

This report is the property of the O?ice of Inspector General. be report and its contents may not be

reproduced without written permission. The report is OR OFFICIAL USE ONLY and its disclosure to

unauthorized persons is prohibited Public availability is to be determined by the 016 under