Chicago plays key role as DOJ trade fraud crackdown tops $1 billion in recoveries, charges

CHICAGO - Federal law enforcement gathered Tuesday to announce that the Department of Justice's Trade Fraud Task Force has surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures and publicly charged losses since its launch in August 2025.

The backstory:

The task force, created by the Justice Department and the Department of Homeland Security, investigates companies and individuals accused of evading customs duties, mislabeling imported goods, using transshipment schemes and violating other U.S. trade laws.

Officials also highlighted more than $1 billion worth of illegal goods seized by U.S. Customs and Border Protection, including counterfeit or improperly imported products ranging from drones and e-cigarette cartridges to gold jewelry.

"All Americans pay the price" when prohibited, dangerous or unlicensed products enter the country illegally, Assistant Attorney General Colin McDonald said on Tuesday.

Federal officials warned that Chicago remains one of the country's busiest trade hubs, making it a key focus for customs enforcement.

The Justice Department announced charges in two major customs fraud investigations tied to the Chicago area.

Raj Kohli and Veena Kohli, operators of California-based Surya International, are accused of falsely claiming imported gold jewelry originated in Singapore instead of India and the United Arab Emirates. Prosecutors allege the company imported approximately 563 shipments of jewelry valued at more than $693 million between 2020 and 2024 while avoiding more than $38 million in customs duties.

Separately, prosecutors charged Narain Gulabani, owner of Barkha Wholesale in Naperville, alleging he falsely declared the country of origin for imported gold jewelry between 2016 and 2021. Prosecutors said the jewelry was valued at more than $240 million, allowing the company to avoid approximately $13.6 million in customs duties.

The charges are allegations, and all defendants are presumed innocent unless proven guilty in court.

"These alleged lies allowed these defendants to avoid $38 million in duties, undercutting domestic manufacturers and denying funding to vital public services," said McDonald.

He added that customs fraud "threatens our security, steals from taxpayers, undermines American businesses, funds foreign adversaries, introduces hazardous goods into our markets and exploits modern-day slavery."

U.S. Customs and Border Protection Acting Deputy Commissioner Ronald Vitiello said illegally imported products often bypass important safety standards.

"We have no idea how they're manufactured. We have no idea what the standards of those factories are," Vitiello said while discussing seized vape cartridges.

U.S. Attorney Andrew Boutros, whose office in Chicago was selected as the Trade Fraud Task Force's lead prosecutorial partner, said officials believe customs fraud is significantly underreported.

"We've seen estimates that $300 billion-plus in duties and tariffs are evaded, and that's probably an underestimate," Boutros told FOX Chicago. "America is the largest importer of foreign goods, so people want access to our marketplaces."

Boutros said the latest cases are part of what he described as a new era of aggressive trade enforcement after years of under-enforcement. McDonald also issued a warning to companies considering violating U.S. customs laws.

"For too long, bad actors seeking to exploit the American economy have decided that ignoring and violating U.S. customs laws is a business risk worth taking. Those days are over," he said.

What's next:

The Justice Department announced it is creating a new Global Trade & Commerce Enforcement Section dedicated to investigating criminal import and trade fraud.

Officials also released a new Trade Fraud Enforcement Resource Guide intended to help companies understand federal trade laws while warning businesses that enforcement efforts will continue to expand nationwide.

ChicagoNews