DOJ announces Trade Fraud Task Force with Chicago as lead prosecutorial partner

On February 24, 2026, the Department of Justice (DOJ) announced that the U.S. Attorney's Office for the Northern District of Illinois will serve as a lead prosecutorial partner on the newly created Trade Fraud Task Force. This development is yet another step in the increase in federal enforcement against trade fraud and customs violations.

Key takeaways

The Trade Fraud Task Force will target importers, purchasers, supply chain actors, and other parties engaged in customs fraud, including duty evasion, transshipment schemes, mislabeling, and smuggling of prohibited goods. DOJ emphasizes that enforcement will address violations implicating public health, safety, intellectual property rights, and national security.

The Task Force will pursue enforcement through multiple channels: duty and penalty collection actions under the Tariff Act of 1930, civil actions under the False Claims Act (FCA), and parallel criminal prosecutions where appropriate. Companies should anticipate that significant violations may result in forfeitures and seizures in addition to monetary penalties. 

Chicago's designation as a lead prosecutorial partner is strategically significant. As one of the nation's largest inland ports, with major air and water cargo facilities, the Northern District of Illinois provides expansive venue opportunities for trade fraud matters. Under federal law, any offense involving importation may be prosecuted in any district through which the imported goods move.

DOJ is explicitly encouraging importers, agents, purchasers, supply chain actors, and end-users to conduct thorough audits of their sourcing, purchasing, and importing practices. Companies that identify compliance gaps should consider voluntary self-disclosure and remediation of unlawful conduct.

The Task Force has publicly welcomed FCA filings as well as referrals and cooperation from domestic industries harmed by unfair trade practices. Companies should anticipate heightened whistleblower activity in this space.

Recommended actions

Companies should consider reviewing their customs and trade compliance programs, conducting internal audits of sourcing and import practices, and evaluating whether voluntary disclosure may be appropriate where potential issues are identified. Organizations should also assess their whistleblower policies and ensure employees understand internal reporting channels.

If you have any questions or need assistance regarding these issues, please reach out to our team members or the Reed Smith attorney with whom you typically work.