DOJ Launches Trade Fraud Task Force to Ramp Up Enforcement

The Trump Administration’s commitment to combat fraud has taken another step forward with the creation of a new Trade Fraud Task Force. Announced on August 29, 2025, by the Department of Justice (DOJ), and consistent with the directives of Executive Order 14243, the cross-agency task force will focus on “robust enforcement against importers and other parties who seek to defraud the United States.”

The Task Force will include both the DOJ’s Criminal and Civil Divisions, along with the Department of Homeland Security—leveraging that agency’s specialized expertise in trade enforcement.

This development comes as no surprise. DOJ leadership has consistently emphasized its focus on trade and customs fraud, particularly cases involving tariff evasion. The formation of this task force underscores that priority.

A central aim of the Task Force is to support President Trump’s broader trade agenda, which places heavy emphasis on compliance with U.S. trade laws, including the full and timely payment of tariffs and duties. In the announcement, Acting Assistant Attorney General Matthew R. Gaelotti, who heads the DOJ’s Criminal Division, stated that the Criminal Division, led by the Fraud Section, “is committed to using every available tool to hold bad actors accountable.”

Those tools include enforcement under the Tariff Act of 1930, the False Claims Act (FCA), and federal criminal statutes under Title 18 related to fraud and conspiracy. The DOJ also encouraged the public and corporate insiders to submit information through the recently revamped Criminal Division’s Corporate Whistleblower Program and to file FCA qui tam lawsuits where appropriate.

The DOJ’s Fraud Section, recognized for leading successful national enforcement efforts, including in the health care sector, is expected to bring the same data-driven strategies to trade enforcement. It is anticipated that with the aid of data analytics, the Task Force will identify outliers and anomalies in import data to help uncover potentially fraudulent behavior.

Enhanced inter-agency collaboration will also improve the speed and efficiency of investigations. Historically, announcements like this by the DOJ are followed by aggressive enforcement actions, sometimes culminating in coordinated national takedowns. There is every reason to believe this task force will follow that same trajectory, and importers will be under heightened scrutiny.

Even before the official formation of the Trade Fraud Task Force, there was an increase in enforcement activity regarding tariff evasion in recent months. Notably, on July 23, 2025, a New Hampshire-based plastics resin importer agreed to pay $6.8 million to resolve FCA allegations involving the willful failure to pay Section 301 duties on goods imported from China.[1] The company failed to declare the correct country of origin and value on certain products manufactured in China, leading to underpayment of required duties. This case stemmed from a timely self-disclosure by the importer, which resulted from a thorough and independent internal investigation. The DOJ publicly recognized the value of the self-disclosure and awarded the importer with credit for cooperating with the government.

The announcement of this task force reaffirms DOJ’s intent to make tariff evasion a top enforcement priority. Companies should treat this as a clear signal: now is the time to proactively assess and strengthen trade compliance programs. This includes reviewing import procedures, verifying country-of-origin and valuation documentation, conducting supply chain audits, and leveraging data analytics to understand how the company’s activities might appear to regulators. Equally important is maintaining a robust internal compliance program that investigates and responds appropriately to whistleblower reports.

Contact Verrill’s team of seasoned white-collar attorneys for more information on how this task force could impact you and your business.

[1]Jay McCormack served in the Office of the U.S. Attorney for the District of New Hampshire when the referenced matter was resolved. All information about this matter presented here is based on public information contained in a press release issued by the U.S. Department of Justice Office of Public Affairs found here: https://www.justice.gov/opa/pr/importers-agree-pay-68m-resolve-false-claims-act-liability-relating-voluntary-self