The U.S. Department of Justice is increasingly turning to the False Claims Act to pursue companies accused of evading customs duties, a trend legal experts say is likely to accelerate as tariffs remain elevated and whistleblowers become more active.
Alexander M. Owens, a partner at Pietragallo Gordon Alfano Bosick & Raspanti LLP in Philadelphia who represents whistleblowers and businesses in False Claims Act cases, said customs fraud enforcement has evolved from a niche area of government oversight into a rapidly growing enforcement priority.
“We think this is really an area that’s getting pretty hot in terms of the False Claims Act world,” Owens told FreightWaves. “The government learns how to investigate these cases better, the word gets out for participants in the industry, and there becomes this pipeline of cases for decades.”
The trend comes as federal authorities pursue a growing number of customs fraud and tariff evasion cases. Recent actions include the government’s $549.5 million settlement involving aluminum extrusion imports, a customs fraud claim against bankrupt auto-parts supplier First Brands Group, and enforcement actions targeting alleged country-of-origin fraud and duty evasion schemes.
According to research compiled by Owens, customs fraud recoveries under the False Claims Act totaled more than $570 million during the first five months of 2026, surpassing all prior annual totals and exceeding the combined recoveries from many previous years.
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