DOJ Trade-Fraud Task Force Passes $1 Billion—What It Includes
The Justice Department said July 14, 2026, that a federal Trade Fraud Task Force created with the Department of Homeland Security had surpassed $1 billion in combined civil and criminal recoveries, penalties, forfeitures and publicly charged losses.
The announcement also created a Global Trade & Commerce Enforcement Section inside DOJ’s National Fraud Enforcement Division. The new section will investigate and prosecute criminal import, customs, trade, forced-labor, product-safety and related fraud cases.
The initiative is aimed at more than inaccurate customs paperwork. Federal officials say false import declarations can reduce public revenue, give noncompliant businesses an advantage over honest competitors and allow unsafe, restricted or forced-labor-linked goods to enter U.S. supply chains.
What the $1 billion figure includes
The headline figure is not a single cash recovery deposited into the Treasury. DOJ said it combines completed civil and criminal recoveries, penalties and forfeitures with losses publicly charged in cases that may still be pending.
That distinction matters. A recovery, penalty or forfeiture reflects an enforcement result, while a publicly charged loss is an allegation made by prosecutors. Criminal charges are not convictions, and alleged losses are not the same as money the government has collected.
DOJ separately said U.S. Customs and Border Protection had assessed more than $2.1 billion in commercial trade penalties during the fiscal year. That is a separate CBP figure and should not be added to or treated as part of the task force’s $1 billion total.
How the task force works
DOJ and DHS launched the Trade Fraud Task Force in August 2025 with a nationwide mandate. Its partners include CBP, Homeland Security Investigations and other federal agencies. The task force can use criminal prosecutions, civil False Claims Act cases, seizures and forfeiture authorities.
Its stated priorities include evasion of Section 301 tariffs, antidumping and countervailing duties, forced labor in global supply chains and criminal violations involving imported goods that threaten public health or safety.
The task force’s reach can extend beyond an importer to customs brokers, distributors, commercial users and other supply-chain participants who knowingly benefit from merchandise imported contrary to law. DOJ has described the effort as a shift toward combining administrative, civil and criminal tools rather than treating customs violations only as financial penalties.
Two Chicago cases illustrate the allegations
Federal prosecutors in Chicago announced charges in two gold-jewelry import cases that DOJ said contributed to the milestone. The cases are national examples within the task force’s broader work, not a finding that the alleged conduct has been proved.
In one case, prosecutors charged Raj Kohli and Veena Kohli, operators of Surya International, a gold-jewelry importer and wholesaler based in South San Francisco, California. Prosecutors allege that jewelry from India and the United Arab Emirates was falsely declared as originating in Singapore.
The indictment alleges approximately 563 entries from about August 2020 through May 2024, with a total declared value of more than $693 million and more than $38 million in customs duties allegedly avoided.
In the second case, prosecutors charged Narain Gulabani, who operated Barkha Wholesale in Naperville, Illinois. The charges allege that gold jewelry from other countries was falsely declared as originating in Oman or Singapore. Prosecutors cite approximately 242 entries valued at more than $240 million and about $13.6 million in allegedly avoided duties.
Those figures remain allegations in criminal cases. The defendants are entitled to the federal court process, and the charges must be resolved through that process.
What a completed case looks like
A June 2026 sentencing in the Northern District of Illinois provides a comparison with a completed outcome. Ravi Kapadia, a former accountant for a United Arab Emirates gold-jewelry exporter, pleaded guilty in October 2025 to conspiracy and false-statement charges.
On June 26, 2026, a federal judge sentenced Kapadia to 10 months in prison and ordered restitution after finding him accountable for evading more than $1.89 million in U.S. customs duties. That case involved a guilty plea, a sentence and a restitution order—unlike a publicly charged loss in a case that has not yet been resolved.
Why this matters to consumers and businesses
When an importer avoids duties through false country-of-origin information, the immediate issue is lost customs revenue. The alleged conduct can also reduce the cost of goods for a noncompliant company, putting businesses that follow the rules at a disadvantage.
Trade fraud can carry broader safety implications when it involves defective products, restricted goods, counterfeit items or merchandise tied to forced labor. Officials do not say that every customs violation creates a consumer-safety hazard. Their stated concern is that misrepresentation can weaken screening and oversight when illegal or unsafe goods are part of the supply chain.
Consumers should not assume the task force’s announcement will automatically lower prices or produce immediate changes in stores. The potential effects are broader: enforcement may affect competition, government revenue, sourcing decisions and confidence in the products moving through U.S. markets.
What happens next
The new Global Trade & Commerce Enforcement Section is expected to coordinate future criminal trade-fraud investigations with U.S. attorneys’ offices and agency partners. DOJ and DHS also released a trade-fraud resource guide covering customs rules, anti-fraud laws and possible civil and criminal resolutions.
Businesses and members of the public can report suspected trade-law violations through CBP’s e-Allegations process. The agency says reports may be used for enforcement purposes, but it may limit what it discloses about an investigation. A report therefore does not guarantee public confirmation or a particular enforcement result.
Sources
- U.S. Department of Justice: Trade Fraud Task Force milestone and new enforcement section
- Reuters: DOJ launches new trade fraud enforcement unit
- U.S. Customs and Border Protection: e-Allegations FAQ
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