A competitor could trigger a federal investigation against your company, just by filing a whistleblower complaint about your imports. In this episode, Michael Volkov explores how the Trump Administration is reshaping the enforcement landscape by linking trade compliance and the False Claims Act (FCA) in unprecedented ways. With “trade and customs fraud, including tariff evasion” now a DOJ national priority, companies engaged in international trade face growing legal and reputational risks. A recent Ninth Circuit ruling has only intensified the stakes.
You’ll hear him discuss:
- Why DOJ is combining trade enforcement and FCA cases, and what that means for companies that import goods into the U.S.
- How “reverse false claims” work in the trade context, and why import misclassification, undervaluation, or incorrect country-of-origin declarations are now high-risk areas.
- Recent high-dollar settlements - including $45 million in one case - where companies paid the price for customs fraud violations.
- The significance of the Ninth Circuit’s decision in Island Industries v. Sigma Corp., which confirmed DOJ’s ability to pursue customs fraud claims under the FCA in federal court.
- How whistleblowers, including competitors, are using FCA claims as a strategic tool in the marketplace, leading to sealed complaints and increased litigation.
- What companies should be doing now to evaluate and reinforce their trade compliance programs, from reviewing documentation and broker relationships to training and internal reporting.
- Why ignoring tariff and duty obligations - or failing to investigate them thoroughly - could be seen as deliberate indifference, exposing companies to both civil and criminal liability.
Resources
Michael Volkov onLinkedIn |Twitter
The Volkov Law Group
