U.S. trade fraud task force tops $1 billion in recoveries and charged losses

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U.S. trade fraud recoveries

Highlights

The U.S. Trade Fraud Task Force surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures, and charged losses since its August 2023 launch.
Surya International, Inc. and Barkha Wholesale, Inc. face federal charges for false origin declarations on imported gold jewelry, avoiding customs duties exceeding $51.6 million combined.
Federal authorities emphasize escalating legal and financial risks for companies over origin declarations and tariff compliance as enforcement efforts intensify across the entire cross-border supply chain.

Enforcement milestone and case details

As reported by the U.S. Department of Justice, the Trade Fraud Task Force, launched in August 2025 by DOJ and the Department of Homeland Security, has surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures, and publicly charged losses in less than one year. Officials present the result as evidence of a tougher federal approach to customs and trade enforcement, with greater reliance on criminal prosecution and False Claims Act cases.

Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division says customs violations are no longer being treated as a routine cost of doing business. He says the government is using its full enforcement powers to signal that trade fraud is a serious economic crime affecting border integrity and market fairness.

The U.S. Attorney's Office for the Northern District of Illinois also announces charges against Raj Kohli and Veena Kohli, who operate Surya International, Inc. Prosecutors allege that from about August 2020 through May 2024, the company and others imported about 563 shipments of gold jewelry falsely declared as originating in Singapore instead of India and the United Arab Emirates, avoiding more than about $38 million in customs duties.

In a separate case, prosecutors charge Narain Gulabani, owner and operator of Barkha Wholesale, Inc., with falsely declaring the origin of imported gold jewelry. The allegations say that from about May 2016 to October 2021, he imported about 242 shipments falsely listed as made in Oman or Singapore, resulting in avoided customs duties of more than $13.6 million.

Broader impact on trade compliance

The task force was created to investigate and prosecute material misrepresentations to U.S. Customs and Border Protection, including transshipment, mislabeling, and false declarations. Its mandate extends across the supply chain, covering importers, customs brokers, downstream distributors, end-users, and other actors who knowingly profit from merchandise imported contrary to law.

Federal officials say these cases form part of a wider campaign against schemes that distort competition, damage domestic industries, and reduce government revenue. For companies involved in cross-border sourcing, the latest enforcement actions reinforce rising legal and financial risks around origin declarations and tariff compliance.

In our earlier article on the GSA’s push to expand procurement of American-made products via the GSA Advantage! marketplace, we covered the agency’s Request for Information seeking industry input on how to make U.S.-made goods easier to identify and buy. We also noted GSA’s ramped-up Trade Agreements Act compliance oversight, including blocking tens of thousands of non-compliant items from contract awards and removing others from existing contracts.

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