On December 3, 2025, a Department of Justice official previewed significant developments in how the Trade Fraud Task Force brings criminal cases for alleged tariff evasion, emphasizing that more cases are in the pipeline beyond three recently announced corporate enforcement actions.
At the American Conference Institute’s 42nd Annual Conference on FCPA and Global Anti-Corruption, DOJ’s Senior Counsel Cody Herche explained that the Task Force plans to borrow from DOJ’s Health Care Fraud Unit protocols to develop leads indicating potential criminal violations of US tariff laws, including 18 USC § 545 (smuggling goods into the United States) and 18 USC § 542 (entry of goods by means of false statements).
Herche discussed several recent cases that exemplify the types of cases on which the Task Force will focus:
- An August 21, 2025 indictment of two Colorado companies, Endless Sales Inc. and Octane Forklifts Inc., and their top executives. The companies allegedly defrauded the federal government and evaded tariffs by pretending Chinese-origin forklifts were “Made in America.” The indictment alleges a criminal conspiracy under 18 USC § 371 and 18 USC § 542. Office of Public Affairs | Two Companies and Three Executives Indicted for Fraudulently Selling Chinese Forklifts to U.S. Government as “Made in America” and Evading Tariffs | United States Department of Justice
- A criminal complaint against Indonesian company UBS Gold, its co-owner, and a number of employees for allegedly evading over $86 million in customs duties and tariffs on Indonesian jewelry through, among other schemes, false reporting of country of origin. The complaint alleges a conspiracy to commit wire fraud in violation of 18 USC § 1349. District of New Jersey | Indonesian Jewelry Company, Co-Owner, and Two Other Employees Charged in Large-Scale Duty and Tariff Evasion Scheme | United States Department of Justice
- A November 21, 2025 by European infant formula maker Able Groupe Inc. for smuggling goods into the United States in violation of 18 USC § 545 and passing fraudulent documents through customs in violation of the Food, Drugs & Cosmetics Act. Office of Public Affairs | Online Seller of Infant Formula Pleads Guilty to Smuggling and Violating FDA Prior Notice Requirements | United States Department of Justice
KEY TAKEAWAYS
The announcement and highlighted cases underscore the Task Force and DOJ’s plants to employ traditional white-collar enforcement tactics in prosecuting criminal tariff evasion. This has both criminal and civil implications as there have been increased False Claims Act cases brought against companies for customs and tariff violations, and parallel civil cases and criminal prosecutions are foreseeable. Indeed, Heche was clear that the Task Force is aggressively encouraging whistleblowers to report suspected violations that undermine the ability of law-abiding US importers to compete fairly. Office of Public Affairs | Departments of Justice and Homeland Security Partnering on Cross-Agency Trade Fraud Task Force | United States Department of Justice
Company compliance programs should address the risk of criminal enforcement and civil actions as applied to tariff and customs violations.
WE CAN HELP
Brooks Law Group can (1) respond to investigations by any U.S. agencies in connection with customs duties and tariffs; (2) assess company compliance policies as they pertain to tariff compliance and custom duties; and (3) assist in reducing tariff exposure. We can also represent whistleblowers in these areas. Heche’s announcement was clear that competitor companies are encouraged to report suspected violations as whistleblowers.
