Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 22 OCTOBER 2026

What Recent Customs Cases Have In Common

Barnes & Thornburg LLP
Explore more from Barnes & Thornburg LLP

The Department of Justice has dramatically expanded customs enforcement beyond traditional CBP penalties, now pursuing foreign companies and individual executives through False Claims Act litigation and criminal charges. Recent cases reveal four critical patterns that expose companies to civil treble damages, criminal prosecution, and personal liability for executives—even when violations began years before current trade tensions escalated.

United StatesCriminal Law
Scott Hulsey
Scott Hulsey
Adetayo Osuntogun
Adetayo Osuntogun
Emily Harake
Emily Harake
Author LinkedIn connections

Part 3 of 4 in a series drawn from the Barnes & Thornburg white paper "False Claims Act and Criminal Enforcement in the Tariff Context: Practical Guidance for Companies, Corporations, and Executives"

The Department of Justice (DOJ)'s recent customs enforcement actions span aluminum extrusions, tungsten carbide tooling, office chairs, forklifts, quartz countertops, jewelry, wood flooring, plastic resin, and cargo vans. The products vary widely. The patterns do not.

Four threads run through these matters.

Nationality Is Not a Shield

The False Claims Act (FCA) — the government's main civil fraud statute, which now drives much of its customs enforcement — reaches any "person" who knowingly submits or causes the submission of false claims. Courts have recognized that this includes foreign companies operating in U.S. import chains. The criminal smuggling and conspiracy statutes apply to anyone whose conduct affects U.S. commerce, regardless of nationality.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SEC Charges WhatsApp-Driven Crypto Fraud Schemes Totaling Over $15 Million

The SEC has charged two offshore entities with orchestrating sophisticated investment confidence scams that defrauded over 2,000 retail investors of at least $15.3 million through fake AI-powered crypto trading platforms. Using WhatsApp group chats, impersonated investment professionals, and fabricated regulatory filings, the defendants created elaborate schemes that promised guaranteed returns while stealing investor funds through shell companies and blocking withdrawal attempts with demands for additional
United StatesCriminal Law
Ballard Spahr LLP
Ballard Spahr LLP
Article

DOJ Announces 2026 National Health Care Fraud Takedown: 455 Defendants Charged In $6.5 Billion Enforcement Action

The Department of Justice's 2026 National Health Care Fraud Takedown charged 455 defendants in connection with $6.5 billion in alleged fraud schemes, marking an unprecedented scale of enforcement action. This whole-of-government approach leverages advanced data analytics and international cooperation to combat healthcare fraud across Medicare, Medicaid, and other federal programs. The enforcement action demonstrates heightened scrutiny of providers, aggressive asset forfeiture, and a focus on cases involvin
United StatesCriminal Law
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

Prediction Markets — Legitimate Trading Or Gambling?

The rapid expansion of online prediction markets has created a regulatory gray area where consumers can effectively wager on sporting events even in states that prohibit traditional sports betting. As platforms like Kalshi, Polymarket, and Robinhood argue their services constitute futures trading rather than gambling, state attorneys general and the CFTC are locked in legal battles over jurisdiction and consumer protection.
United StatesCriminal Law
Klemchuk
Klemchuk
Article

OFAC Broadens Cuba Sanctions And Restricts Payments And Travel

The U.S. Treasury Department's Office of Foreign Assets Control has implemented sweeping changes to Cuba sanctions, introducing a new regulatory framework that extends restrictions beyond U.S. persons to foreign entities and financial institutions. These measures eliminate key banking authorizations, expand transaction prohibitions to include intermediary payments, and significantly narrow travel permissions, creating new compliance challenges for businesses operating in or through Cuba-related channels.
United StatesGovernment, Public Sector
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

IEEPA Tariff Refunds: Critical Developments, Phase III Delays, And Action Steps For Importers

U.S. Customs and Border Protection has begun processing IEEPA tariff refunds through its CAPE system, but Phase III covering finally liquidated entries faces delays and requires court orders. With the Department of Justice appealing the universal refund order and class certification pending, importers with finally liquidated entries may need to file individual lawsuits at the Court of International Trade to preserve their claims before statutory deadlines expire.
United StatesInternational Law
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

California Passes AB-1883 Targeting AI Workplace Surveillance Of Employees’ Emotional State And Neural Data

On Aug. 30, AB-1883 received final legislative approval and now heads to California Governor Gavin Newsom for signature or veto. If enacted, AB-1883 would prohibit employers from using workplace surveillance tools that rely on artificial intelligence (AI) to recognize, infer, or predict an employee’s emotional state, or to collect “neural data.”
United StatesEmployment and HR
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

New York State Minimum Wage Increase Halted For 2027; Governor Proposes March Hike

New York's minimum wage will hold steady at current rates through early 2027, but Governor Hochul has proposed legislation that would tie future increases to inflation beginning March 1, 2027. Home care workers will see immediate wage increases to $19-$20 per hour starting January 1, 2027, while standard minimum wages remain at $16-$17 depending on location. Employers across the state should prepare now for potential legislative changes that could affect payroll systems and compensation structures.
United StatesEmployment and HR
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

Time To Update The Handbook And The Training Deck: Three New California Laws Affecting Employment Policies And Training

California Governor Newsom has signed three bills that will require California employers to revisit their written policies and their training programs. On the policy side, SB 1149 widens who counts as a “family member” for bereavement leave. On the training side, AB 1803 adds an anti-hate speech component to mandatory harassment prevention training starting Jan. 1, 2028.
United StatesEmployment and HR
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

Russia Sanctions And Tariffs: What Businesses Need To Know About The Graham Act

President Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, introducing sweeping new tariffs of up to 100% on countries purchasing Russian energy and up to 500% on Russian-origin goods. The legislation also codifies existing executive order sanctions into statute, requiring congressional action to lift restrictions and creating mandatory secondary sanctions on foreign financial institutions transacting with designated Russian banks. Companies face immediate compliance challenge
RussiaInternational Law
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

Three New California AI Statutes: What Employers Should Know

For California workplaces, the new laws change the ground rules: one law governs the role automated tools may play in disciplinary and termination decisions, another adds AI-specific content to mass layoff notices, and the third limits AI-enabled employee monitoring. In this update, we explain what each law requires or forbids, how the law will be enforced, and the steps we recommend employers take.
United StatesEmployment and HR
Barnes & Thornburg LLP
Barnes & Thornburg LLP