July 15, 2026
The Department of Justice just announced a major milestone: its Trade Fraud Task Force has surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures, and publicly charged losses in less than one year.
For companies involved in importing goods into the United States, this is a clear warning. For insiders with information about customs fraud, tariff evasion, false country-of-origin claims, forced labor, or unsafe imported products, it may also be a significant whistleblower opportunity.
DOJ Is Treating Trade Fraud as a Serious Enforcement Priority
The Trade Fraud Task Force was launched in August 2025 by DOJ, with the Department of Homeland Security, to investigate and prosecute companies and individuals who defraud the government through false statements to U.S. Customs and Border Protection.
DOJ made clear that it is moving away from treating customs violations as routine administrative problems. Instead, the government is now emphasizing criminal prosecution and civil enforcement under the False Claims Act.
That matters because the False Claims Act is one of the government’s strongest anti-fraud tools. It also allows whistleblowers, called “relators” under the FCA, to file lawsuits on behalf of the United States and potentially receive a share of the government’s recovery if the case succeeds.
What Types of Trade Fraud Is DOJ Targeting?
DOJ has identified several categories of conduct that are now squarely in its sights, including:
- False country-of-origin declarations
- Transshipment schemes
- Mislabeling imported goods
- False customs declarations
- Evasion of Section 301 tariffs
- Evasion of antidumping and countervailing duties
- Forced labor in global supply chains
- Importing unsafe goods that threaten public health or safety
In short, DOJ is looking for companies that lie about what they are importing, where products came from, what duties are owed, or whether goods entered the United States legally.
DOJ Is Looking Beyond Importers
One of the most important parts of the announcement is that DOJ is not limiting its focus to the company listed as the importer of record.
The Task Force’s mandate covers the entire supply chain, including:
- Importers
- Customs brokers
- Foreign manufacturers
- Downstream distributors
- Industrial and commercial end-users
- Other companies that knowingly profit from goods imported contrary to law
That means a company may face exposure even if it did not physically bring the goods into the country. If a downstream business knew, or had reason to know, that products were imported through false declarations or duty-evasion schemes, it may become subject to government investigation.
The Chicago Gold Jewelry Cases Show the Scale of the Problem
The DOJ also announced charges in two significant Chicago trade fraud cases involving imported gold jewelry.
In one case, the government alleged that a California gold jewelry importer and wholesaler falsely declared that jewelry originated in Singapore, when the true countries of origin were India and the United Arab Emirates. The DOJ alleged approximately 563 entries of gold jewelry with a total value of more than $693 million, resulting in the alleged avoidance of more than $38 million in customs duties.
In a separate case, the government alleged that an Illinois gold jewelry importer falsely declared jewelry as having been manufactured in Oman or Singapore. The DOJ alleged approximately 242 entries of gold jewelry valued at more than $240 million, resulting in the alleged avoidance of more than $13.6 million in customs duties.
These cases show how country-of-origin fraud can create massive liability, especially where duty rates are tied to geography.
Recent Enforcement Has Spanned Many Industries
The DOJ highlighted trade fraud matters involving a wide range of products and industries, including:
- Aluminum extrusions
- Birch plywood
- Tungsten carbide products
- Defective imported air conditioners
- Plastic resin
- Gold jewelry
This is important for potential whistleblowers because trade fraud is not limited to one industry. It can occur anywhere companies import goods, use brokers, rely on foreign suppliers, or try to avoid tariffs and customs duties.
Whistleblowers May Be Critical to These Cases
Exposing trade fraud often depends on inside information. Documents may say one thing, while employees, brokers, logistics personnel, compliance officers, sales teams, or supply-chain managers know something else.
Potential whistleblowers may have information about:
- Internal documents discussing true country of origin
- Instructions to change invoices, labels, or shipping documents
- Use of third countries to disguise the real source of goods
- Customs brokers being told to submit inaccurate information
- Management ignoring warnings from compliance staff
- Suppliers admitting products were made in a different country
- Efforts to avoid antidumping, countervailing, or Section 301 duties
- Goods made with forced labor or prohibited supply-chain practices
- Unsafe imported products concealed from regulators
These facts can be extremely valuable to the government, especially when they show that a company acted knowingly rather than by mistake.
DOJ Is Actively Inviting Whistleblowers to Come Forward
The DOJ’s announcement ends with a direct message: the Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including through the qui tam provisions of the False Claims Act or through the DOJ’s Corporate Whistleblower Program.
That invitation is significant. DOJ is not simply announcing past recoveries. It is actively signaling that it wants new information from people who know about trade fraud.
Why Legal Counsel Matters Before Reporting
If you have information about trade fraud, it is important to speak with experienced whistleblower counsel before contacting the government.
A lawyer can help evaluate whether the facts may support a False Claims Act case, whether the DOJ Corporate Whistleblower Program may apply, how to preserve evidence lawfully, and how to avoid mistakes that could harm your rights or your credibility.
Whistleblower matters are often time-sensitive. In False Claims Act cases, the first person to file can have important advantages. Waiting too long may allow another whistleblower, the government, or public reporting to affect the value or viability of a claim.
The Bottom Line
DOJ has made clear that trade fraud is now a major federal enforcement priority.
Companies that evade customs duties, disguise product origin, misuse supply chains, or profit from illegally imported goods may face serious civil and criminal consequences.
For insiders, this also means there may be meaningful opportunities to report fraud, help protect U.S. taxpayers and law-abiding businesses, and potentially qualify for a whistleblower award.
If you have information about customs fraud, tariff evasion, false country-of-origin declarations, forced labor in supply chains, or other import-related misconduct, you should consider reaching out to the whistleblower attorneys at Feldman Shepherd, who have experience with trade fraud matters brought under the False Claims Act, for a free and confidential initial consultation.
