World July 14, 2026 03:20 PM

Justice Department Creates Dedicated Trade Fraud Unit to Pursue Criminal Import Violations

New global trade enforcement section within the National Fraud Division aims to escalate prosecutions of customs, import and trade fraud

By Ajmal Hussain
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The U.S. Department of Justice is establishing a global trade enforcement section inside its National Fraud Division to investigate and prosecute criminal import, trade and customs fraud. The move reflects a shift from administrative penalties to criminal enforcement, following more than $1 billion in recoveries and penalties tied to the Trade Fraud Task Force. Announcements were made at a Customs and Border Protection inspection site near Chicago O'Hare amid seized illicit goods, alongside separate criminal charges in two large gold jewelry import cases.

Justice Department Creates Dedicated Trade Fraud Unit to Pursue Criminal Import Violations
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Key Points

  • DOJ has created a global trade enforcement section within its National Fraud Division to investigate and prosecute criminal import, trade and customs fraud.
  • The move signals a shift from administrative fines to criminal prosecutions; since August 2025 the Trade Fraud Task Force has exceeded $1 billion in civil and criminal recoveries, penalties, forfeitures and publicly charged losses.
  • Separate criminal charges were announced in two Chicago-based gold jewelry import cases involving $933 million in import value and $51.6 million in avoided customs duties; announcement took place at a CBP inspection warehouse near Chicago O'Hare amid seized vaping devices and drones.

The Department of Justice announced on Tuesday the formation of a new global trade enforcement section within its National Fraud Division. The unit will focus on investigating and prosecuting criminal offenses involving imports, trade and customs fraud.

Officials framed the new section as part of a broader recalibration of federal enforcement priorities - moving away from a reliance on administrative fines for import violations and toward criminal prosecutions. According to the announcement, since the DOJ and the Department of Homeland Security launched the Trade Fraud Task Force in August 2025, the agencies have exceeded $1 billion in civil and criminal recoveries, penalties, forfeitures and publicly charged losses.

The formal mission of the DOJ’s trade fraud unit is to investigate and prosecute criminal schemes that bring goods into the United States illegally. That work includes cases where imports violate U.S. product safety requirements or anti-forced labor laws, as well as schemes that misreport import values or other information to evade tariffs.

"For too long, fraud actors have viewed customs violations as a mere surcharge or cost of doing business," Assistant Attorney General Colin McDonald said in a statement. "By utilizing the Department’s full weight, we are making it clear that trade fraud is a serious economic crime."

The announcement was delivered at a U.S. Customs and Border Protection inspection warehouse near Chicago’s O’Hare International Airport, described by officials as a major import hub. The location was featured amid boxes of confiscated illegal vaping devices and drones.

Separately, the U.S. Attorney’s Office for the Northern District of Illinois announced criminal charges in two Chicago-based gold jewelry import cases. In those matters, defendants are accused of falsely declaring the country of origin for imported jewelry to evade tariffs. The jewelry had a combined import value of $933 million and, the office said, avoided customs duties of $51.6 million.

The new enforcement section centralizes the DOJ’s criminal trade fraud efforts within the National Fraud Division and signals an intensified federal focus on the criminal dimensions of import compliance. The department described this effort as leveraging its full prosecutorial authority to address schemes that undermine customs laws and tariff enforcement.


Summary

The DOJ has launched a global trade enforcement section to pursue criminal import, trade and customs fraud, marking a shift toward criminal prosecutions after more than $1 billion in recoveries and penalties tied to the Trade Fraud Task Force. The announcement was made at a CBP inspection warehouse near Chicago O'Hare and coincided with criminal charges in two high-value jewelry import cases.

Risks

  • Increased criminal enforcement may raise legal exposure for importers and supply chain operators in sectors with high volumes of cross-border goods, including consumer electronics, vaping products and jewelry.
  • Heightened scrutiny of import declarations and origin labeling could disrupt trade flows or compliance processes for firms that have relied on administrative remedies rather than criminal-defense preparations.
  • Companies and markets tied to imported consumer goods may face investigation and potential asset forfeitures or penalties as authorities pursue alleged misreporting to evade tariffs.

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