The U.S. Department of Justice announced its Trade Fraud Task Force surpassed $1 billion in criminal and civil recoveries, penalties, forfeitures and publicly charged losses less than one year after its launch. The DOJ simultaneously established a permanent Global Trade & Commerce Enforcement Section within its National Fraud Enforcement Division to serve as the government's primary criminal enforcement office for customs and trade fraud matters. The milestone reflects a broader shift in federal enforcement strategy as authorities increasingly view customs fraud as part of wider financial crime and national security enforcement rather than simply a regulatory compliance issue.
DOJ Establishes Permanent Global Trade Enforcement Section
Assistant Attorney General Colin McDonald announced the formal establishment of the Global Trade & Commerce Enforcement Section as a permanent litigation unit within the DOJ's National Fraud Enforcement Division. The new section's responsibilities extend beyond tariff evasion and customs violations to include trade-based money laundering, forced labour within global supply chains, violations affecting public health and safety, and schemes designed to evade import duties or misrepresent goods entering the United States. The department stated the section will serve as the government's primary criminal enforcement office for customs and trade fraud matters.
Task Force Records $549.5 Million False Claims Act Settlement
The Department of Justice said the Trade Fraud Task Force exceeded the $1 billion threshold through a combination of criminal recoveries, civil settlements, forfeitures, penalties and publicly charged losses since the initiative began. The largest matter contributing to that total was a $549.5 million False Claims Act settlement involving an importer, described by the department as the largest trade-related settlement ever reached under the False Claims Act. DOJ officials credited the milestone to cooperation between federal prosecutors, Homeland Security Investigations, Customs and Border Protection, U.S. Attorneys' Offices and other law enforcement partners.
Northern District of Illinois Announces Additional Trade Fraud Charges
The U.S. Attorney's Office for the Northern District of Illinois announced charges in two additional trade fraud cases on the same day as the DOJ announcement. The office has emerged as one of the Task Force's principal prosecutorial partners. The two cases contributed to the Task Force surpassing the $1 billion milestone.
False Claims Act Expands Beyond Administrative Penalties
The Department of Justice continues expanding its use of the False Claims Act against importers accused of underpaying duties or making false statements to the federal government. The statute allows the government to pursue civil damages against companies that knowingly submit false claims or avoid financial obligations owed to the United States. In the customs context, that includes allegations involving undervalued imports, incorrect country-of-origin declarations, tariff evasion and other practices designed to reduce duty payments. Combined with criminal investigations where appropriate, the approach gives prosecutors a broader range of enforcement tools than traditional customs proceedings alone.
FAQ
What did the DOJ Trade Fraud Task Force achieve less than one year after launch?
The U.S. Department of Justice announced its Trade Fraud Task Force surpassed $1 billion in criminal and civil recoveries, penalties, forfeitures and publicly charged losses less than one year after its launch.
What was the largest settlement contributing to the $1 billion milestone?
The largest matter was a $549.5 million False Claims Act settlement involving an importer, described by the department as the largest trade-related settlement ever reached under the False Claims Act.
What enforcement responsibilities does the new Global Trade & Commerce Enforcement Section handle?
The section's responsibilities include trade-based money laundering, forced labour within global supply chains, violations affecting public health and safety, tariff evasion, customs violations, and schemes designed to evade import duties or misrepresent goods entering the United States.
