The Department of Justice along with the Department of Homeland Security have launched a cross-agency Trade Fraud Task Force to ramp up enforcement against importers and other parties who seek to defraud the United States by circumnavigating tariffs or duties on certain products or smuggling in prohibited goods. Baron & Budd has a successful track record of bringing forward whistleblower suits in customs fraud cases like the ones this task force will be overseeing. As part of our work in this area, we continue to monitor government enforcement efforts.

Behind Customs Fraud

When engaging in trade, companies who import goods into the United States must self-report the country of origin of the goods, the value, whether the goods require payment of duties, and in turn pay that amount to the U.S. Customs and Border Protection (CBP). While antidumping duties help prevent foreign companies from “dumping” products on U.S. markets at prices below costs, countervailing duties help to offset foreign government subsidies. However, when companies and entities don’t pay the correct customs and duties, the government becomes deprived of vital revenue that funds the very programs that US taxpayers rely on, while domestic industries must compete in an un-competitive marketplace. In the end, American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses lose out.

The Role of the Task Force

The task force, then, has come as a result of President Trump’s “America First Trade Policy,” which is intended to protect American individuals and businesses by introducing certain tariffs and duties to level the playing field for them. Any company or individual in violation of customs law by failing to pay the appropriate duties or tariffs can be subject to penalty collection actions under, among other things, the False Claims Act (FCA). The Trade Fraud Task Force, thus, will function by shoring up the federal government’s enforcement capacity to ensure those who don’t play by the rules are held accountable.

The Role of Whistleblowers

Prior to the establishment of the task force, many customs fraud cases have been brought forward under the FCA. For instance, in 2023, the Baron & Budd Whistleblower team announced a $2.5 million settlement on behalf of the United States government with several defendants, including ADCO Industries, Xiamen Atlantis MFC Co., Raymond E. Davis, and Calvin Chang. This is the largest customs fraud case in which the government has intervened involving a scheme to avoid payment of Section 301 tariffs enacted during the first Trump administration. In the case, the defendants were accused of committing FCA violations when they knowingly and fraudulently evaded customs duties owed on goods imported from China. As part of their scheme, they employed fraudulent invoicing methods to deliberately understate the value of their imports to CBP. By doing this, they allegedly defrauded the United States out of more than one million dollars in customs duties. Central to this enforcement was the participation of two whistleblowers who were employees of ADCO. Their direct knowledge and independent investigation were crucial in securing the settlement.

In addition, 2025 has brought several high-profile customs duty fraud enforcements brought forward by whistleblowers under the FCA. For instance, in July of 2025, a former employee who served as a whistleblower helped bring patio furniture company Grosfillex to justice. In the settlement, Grosfillex was ordered to pay $4.9 million to resolve allegations that it violated the FCA when it evaded antidumping and countervailing duties on aluminum-based items imported from China.

In another case in August of this year, a whistleblower brought forward an FCA suit against countertop and cabinetry product supplier, Allied Stone. Allied Stone and its President agreed to pay $12.4 million to resolve allegations that it violated the FCA when they knowingly and improperly evaded or conspired to evade antidumping and countervailing duties owed to the U.S. on quartz surface products imported from China.

As evidenced, whistleblowers play a crucial role in helping uncover customs fraud evasion. With the new task force in place, whistleblowers can feel confident that they’ll have even more backing from the U.S. government when they step forward. Not to mention, whistleblowers who file a successful lawsuit under the FCA can receive 15% to 30% of the money recovered in the case.

Contact Us

Baron & Budd’s whistleblower representation team has more than 50 years of experience representing dozens of clients in government fraud cases. They have returned more than $6 billion to federal and state agencies with whistleblower recovery shares as high as 50%.

Please call (866) 845-2164 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower.