DOJ’s Trade Fraud Task Force Tops $1B—Recoveries, Charges, What’s Next
DOJ says its Trade Fraud Task Force hit $1B+ in recoveries, penalties, forfeitures, and charged losses since Aug. 2025. Here’s what to watch next.
On July 14, 2026, the U.S. Department of Justice said its Trade Fraud Task Force (TFTF)—launched in August 2025 with the Department of Homeland Security—has surpassed $1 billion in civil and criminal “recoveries, penalties, forfeitures, and publicly charged losses” in less than a year. DOJ presents the milestone as a move toward criminal prosecution and civil enforcement under the False Claims Act, rather than treating customs violations as just an administrative cost.
What the $1B+ milestone covers (and what it doesn’t)
DOJ does not describe the $1 billion as a single, finalized cash amount already collected from one group of importers. The release explicitly mixes multiple enforcement buckets—such as recoveries and “publicly charged losses/penalties/forfeitures”—and notes that the status of individual matters can vary (e.g., charged vs. resolved). For readers, the key takeaway is enforcement posture: a higher likelihood of criminal cases and civil False Claims Act exposure tied to import-entry representations.
Who’s involved in the enforcement push
DOJ says TFTF is jointly structured with DHS to investigate and prosecute people who allegedly defraud U.S. Customs and Border Protection (CBP) through “material misrepresentations” tied to import entries—such as transshipment, mislabeling, and false declarations. DOJ frames the mandate as reaching across the supply chain, including importers, customs brokers, downstream distributors, end-users, and other actors who allegedly “knowingly profit” from merchandise imported contrary to law.
DOJ also ties TFTF’s strategy to the National Fraud Enforcement Division’s mission and CBP’s operational role as the front door for spotting trade-fraud signals at ports of entry.
What conduct DOJ says it will keep targeting
In the July 14 announcement and its linked July 2026 compliance guide, DOJ emphasizes priority lanes including:
- Section 301 tariff evasion
- Antidumping and countervailing duties (AD/CVD) evasion
- Forced-labor eradication from global supply chains
- Criminal enforcement tied to imported goods that threaten public health and safety
Proof point DOJ highlighted: gold “false country of origin” charges
DOJ singled out customs-duty evasion charges announced in the Northern District of Illinois (Chicago as a venue) involving gold jewelry schemes.
Raj and Veena Kohli (Surya International, Inc.): DOJ says the charges allege that from about August 2020 through May 2024, about 563 separate entries of gold jewelry were allegedly falsely declared as originating in Singapore rather than the alleged true countries of origin (India and the United Arab Emirates). DOJ says the alleged avoidance involved duty rates of about 5.5% to 5.8% of the declared value, with the jewelry described as having an estimated total value of more than about $693 million and alleged duty avoidance exceeding about $38 million.
Narain Gulabani (Barkha Wholesale, Inc.): DOJ says the charges allege roughly 242 separate entries from about May 2016 through October 2021 with allegedly false country-of-origin declarations (Oman or Singapore). DOJ says the estimated value was more than about $240 million, with alleged duty avoidance exceeding about $13.6 million.
Civil enforcement example DOJ pointed to: Perfectus Aluminum
DOJ’s milestone is also tied to civil False Claims Act accountability. DOJ describes a May 12, 2026 resolution in which Perfectus Aluminum and related companies agreed to pay $549.5 million to resolve civil allegations that they knowingly and improperly evaded antidumping and countervailing duties on aluminum extrusions from China—by allegedly making false statements on customs entry paperwork. DOJ says the allegations involved more than 2.2 million aluminum extrusions that the defendants allegedly misrepresented as “pallets,” described as aluminum extrusions spot-welded together.
What compliance teams should do now
DOJ’s linked July 2026 resource guide underscores that entry data and supply-chain documentation are legal statements—not internal paperwork.
- Broker and importer responsibilities: The guide explains that if a customs broker knows, has reason to know, or suspects that a client has not complied with the law or made an error/omission in a document, the broker must inform the client, advise corrective actions, and retain a record of the broker’s communication. The guide also emphasizes that the importer of record remains responsible for ensuring entry information and duty payments are accurate, including underpayment tied to misstatements prepared by a broker.
- Recordkeeping: The guide states customs brokers and importers must comply with a five-year record-retention obligation.
- Forced-labor screening: The guide explains CBP can issue Withhold Release Orders and Findings when there is reasonable suspicion tied to forced-labor allegations. For UFLPA-related goods, CBP applies a rebuttable presumption, and to overcome it the importer must provide “clear and convincing” evidence that the goods were not made with forced labor.
What to watch next
DOJ says CBP has also been stepping up its own trade enforcement: so far in fiscal year, CBP has assessed more than $2.1 billion in commercial trade penalties and debarred 35 parties from federal business. Given how TFTF is framed in the July 14 announcement—especially around duty evasion, origin/classification-type misstatements, forced labor, and criminal exposure—importers and supply-chain partners should expect continued referrals, enforcement actions, and more scrutiny of documentation that supports entry representations and downstream distribution decisions.
Sources
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