The Department of Justice (DOJ) and Department of Homeland Security (DHS) announced that their Trade Fraud Task Force has recovered or charged over $1 billion in civil and criminal penalties, forfeitures, and losses in less than a year. The milestone reflects intensified efforts to combat customs fraud, including tariff evasion and false country-of-origin declarations.
Core Developments
The task force, launched in August 2025, has prioritized cases involving mislabeling, routing goods through third countries, and other supply-chain violations. Officials emphasized that fraud actors previously viewed customs violations as a minor cost of doing business, but the DOJ now treats trade fraud as a serious economic crime.
Key Cases
In Chicago, the DOJ announced charges against two high-profile cases involving over $930 million in imported gold jewelry. Raj Kohli and Veena Kohli, operators of California-based Surya International, allegedly imported $693 million in jewelry from India and the UAE while falsely declaring it originated in Singapore, avoiding $38 million in duties. Separately, Illinois wholesaler Narain Gulabani was charged with importing $240 million in jewelry through false declarations.
Task Force Operations
The task force investigates individuals and companies across the supply chain, including importers, customs brokers, and distributors. Assistant Attorney General Colin McDonald stated that the DOJ will no longer tolerate fraud compromising U.S. borders and markets. The enforcement efforts span misclassified goods, false origin declarations, and tariff evasion schemes.
Policy and Implications
The DOJ highlighted the use of criminal prosecutions and civil enforcement under the False Claims Act to deter fraud. The task force’s success signals a broader government push to safeguard trade integrity and penalize illicit profit schemes. Officials warned that supply-chain actors ignoring red flags to boost margins will face accountability.