May 6, 2026
According to the U.S Attorney for the Eastern District of Tennessee, Echelon Fitness Multimedia, LLC (Echelon) will pay $2.1 million to settle customs fraud allegations. Echelon, based in Chattanooga, Tennessee, sells connected fitness equipment and digital fitness memberships. The settlement will resolve claims brought under the False Claims Act related to Echelon’s imports into the United States.
The allegations focused on Echelon’s conduct between September 2019 and January 2023. According to filed court documents, the company knowingly submitted inaccurate invoices to U.S. Customs and Border Protection. Echelon allegedly underreported the cost of fitness equipment purchased from a China-based manufacturer and assembler. In addition, Echelon did not include the cost of the integrated-computer tablets in the valuation of the fitness equipment shipped to the United States.
By improperly reporting the value of imported goods, the company allegedly reduced tariffs and other import assessments owed to the federal government. Such practices form the basis of customs fraud allegations, particularly when inaccurate documentation is used to lessen legally required payments.
To resolve the civil claims, Echelon agreed to pay at least $2.1 million. The settlement addresses allegations that the company avoided full tariff obligations by providing misleading information to customs officials. The resolution brings to a close the government’s claims connected to the importation and valuation of Echelon’s fitness equipment.
The case was initiated under the whistleblower, or qui tam, provisions of the False Claims Act. A private individual filed the lawsuit on behalf of the United States in federal court. Under the statute, whistleblowers may receive a portion of any recovery. In this matter, the relator will receive $420,000 from the settlement, with the possibility of additional compensation as allowed by law.
This settlement serves as a reminder that customs fraud enforcement extends beyond traditional smuggling cases and includes the accurate reporting of import values. Companies importing goods into the United States remain responsible for ensuring complete and truthful customs declarations, including all components that affect tariff calculations.