DOJ Signals Coming Surge In Criminal Tariff-Evasion Enforcement

At the American Conference Institute's 42nd Annual Conference on FCPA and Global Anti-Corruption held on December 4, 2025 in Washington, senior officials from the U.S. Department of Justice (DOJ) reaffirmed that combatting customs and tariff evasion is now a core criminal white collar enforcement priority for DOJ. As we noted in our prior alert, criminal enforcement against customs-related fraud is now squarely in DOJ's lens—creating heightened risk for importers, manufacturers and supply chain partners.

Deputy Attorney General (DAG) Todd Blanche addressed DOJ's focus on trade fraud in a keynote address. The DAG emphasized that DOJ has been charging cases against companies to reflect its enforcement priorities. The DAG's remarks also complemented those given by the Criminal Division's Senior Counsel, Cody Herche, during the panel "Tariffs, Trade, and a New Frontier of Corruption Risks: Confronting Growing Compliance Pressures Stemming from a Seismic Global Trade Shift."

Herche emphasized the "pipeline" of trade fraud and tariff evasion cases under investigation by the DOJ's Criminal Division and recommended that the audience "watch this space" in the near future. As noted in a prior Akin alert, in August, DOJ and the Department of Homeland Security launched the Trade Fraud Task Force (the Task Force). Herche emphasized three recent high-profile cases against corporations as examples of the kinds of cases that the Task Force is investigating and noted that the Task Force will focus on customs criminal violations such as 18 U.S.C. § 542 (Entry of goods by means of false statements) and 18 U.S.C. § 545 (Smuggling goods into the United States). The cases mentioned by Herche illustrate that focus:

• Endless Sales & Octane Forklifts: On August 21, 2025, Endless Sales, Inc. and Octane Forklifts, Inc., two companies based in Denver, as well as three executives, were indicted for allegedly importing Chinese-manufactured forklifts into the United States while falsely claiming they were "Made in America" under criminal conspiracy (18 U.S.C. § 371) and entry of goods by means of false statements (18 U.S.C. § 542).
• UBS Gold: On November 12, 2025, UBS Gold, as well as its Indonesian co-owner and two employees, were charged for engaging in a two-part scheme to underpay customs duties and tariffs by $86 million when UBS Gold transshipped goods made in Indonesia through Jordan in order to avoid duties and attempted to avoid tariffs entirely by falsely claiming that jewelry—which was actually manufactured in Indonesia—was manufactured in the United States pursuant to a conspiracy to commit wire fraud (18 U.S.C. § 1349).
• Able Groupe: On November 21, 2025, DOJ announced that Able Groupe Inc. pleaded guilty to two felony charges related to its attempt to avoid detection and detention of its imported infant formula by failing to comply with the Food and Drug Administration's Prior Notice requirements and for smuggling goods into the United States (18 U.S.C. § 545).

Whistleblower Incentives Heighten Exposure

When the Task Force launched, DOJ invited corporations—particularly American corporations—to report competitor misconduct:

Because American manufacturers and American workers are at the heart of this Administration's trade policy, the Task Force welcomes referrals and cooperation from the domestic industries that are most harmed by unfair trade practices and trade fraud.

Senior DOJ Official Herche reiterated this refrain from the Task Force's launch during the panel, noting that domestic industries are often best placed to spot fraud that threatens American markets. Herche also confirmed the Criminal Division is actively receiving tips from companies about other competitor companies. This increases the likelihood of investigations triggered by third-party reporting.

Key Takeaways

• DOJ Reaffirms Trade Fraud as Top Criminal Enforcement Priority: Senior DOJ officials reaffirmed that combatting customs and tariff evasion is now a core criminal white collar enforcement priority for DOJ.
• Pipeline of Criminal Cases: DOJ officials confirmed an active pipeline of trade fraud cases, signaling imminent indictments and prosecutions.
• Trade Fraud Task Force Will Drive Enforcement: DOJ is targeting criminal violations under 18 U.S.C. § 542 (False statements on entry of goods) and 18 U.S.C. § 545 (Smuggling), with recent cases illustrating this focus.
• Whistleblower Incentives Increase Exposure Risk: DOJ is actively encouraging domestic industries to report competitor misconduct, and officials confirmed they are receiving tips—increasing the risk of investigations triggered by third-party reporting.
• Compliance Imperative: Companies should immediately review import practices, tariff classifications, duty payments, valuation, country of origin and other entry legal requirements, as well as supply chain documentation, to mitigate enforcement risk.

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