Published: Oct 22, 2012 6:07 PM EDT
Updated: Oct 23, 2012 6:31 AM EDT

ATLANTA (AP) - Federal prosecutors say a company in suburban Atlanta schemed to avoid paying millions of dollars in import taxes on notebooks and loose-leaf paper from China.

A grand jury indicted four people and five companies. Jennifer Chen, chief financial officer of Apego, Inc., pleaded not guilty Monday in federal court and was released on a $25,000 cash bond. The other defendants are believed to be in China and Taiwan.

Prosecutors say Apego imported cheap Chinese-manufactured paper products but made it look like they came from Taiwan by falsifying records and bribing officials.

The U.S. had imposed an import tax on lined paper products from China after determining certain products were being sold in the U.S. for less than fair market value. There are no such duties on lined paper from Taiwan.