Customs Broker Fraud Defense

Experienced Defense Lawyers for Customs Brokers Targeted by CBP, HSI the DOJ, and the Federal Government’s Trade Fraud Task Force

Our lawyers defend customs brokers accused of fraud by US Customs and Border Protection (CBP), US Homeland Security Investigations (HSI), the US Department of Justice (DOJ), and the federal government’s Trade Fraud Task Force. These are serious accusations that can lead to criminal charges in many cases.

John W. Sellers — **Attorney John Sellers**
International Trade Team Lead
Former DOJ Trial Attorney

**Glenn Karabeika**
International Trade Team
Former HSI Special Agent

Customs brokers are subject to numerous statutory and regulatory compliance obligations under federal law. Failure to comply with any of these obligations can lead to allegations of international trade and customs fraud—and these allegations can be either civil or criminal in nature depending on the circumstances involved.

We defend customs brokers in international trade fraud investigations nationwide. If you are facing scrutiny from US Customs and Border Protection (CBP), US Homeland Security Investigations (HSI), the US Department of Justice (DOJ), or the federal government’s Trade Fraud Task Force, we can help. We handle all types of duty evasion and tariff evasion cases, and we rely on deep knowledge and extensive experience to protect our clients by all means available.

We Handle All Types of International Trade Fraud Enforcement Cases

Federal authorities investigate customs brokers for numerous types of customs-related fraud. Within our international trade practice, we represent customs brokers who are facing all forms of scrutiny. This includes, but is not limited to, representing customs brokers who are facing allegations of:

Undervaluing goods on invoices to pay reduced customs duties (this is among the most common customs fraud schemes alleged in cases targeting customs brokers)
Misclassifying products to evade antidumping or countervailing duties (AD/CVD)
Misrepresenting the domestic value of goods imported into the United States
Misrepresenting imported goods’ country of origin
Using a false Harmonized Tariff Schedule (HTS) code to evade customs duties
Rerouting goods through third countries to avoid anti-dumping duties or countervailing import duties
Forging shipping documents or making false statements to CBP employees

These allegations (among others) can lead to serious consequences. Facing a formal investigation can expose customs brokers to substantial civil or criminal penalties. As a result, engaging experienced legal counsel promptly is essential.

Once you contact us, we will arrange for you to speak with a senior attorney at Oberheiden PC right away. If you choose to engage our firm to represent you, we will work quickly to gather the evidence we need to fight the government’s allegations on your behalf and help you avoid unnecessary liability.

Potential Federal Charges Against Customs Brokers

Facing allegations of duty evasion or other forms of customs fraud can expose customs brokers to prosecution for various federal offenses. While it will be possible for targeted customs brokers to negotiate civil settlements with the government in some cases, in many cases, facing criminal charges will be a very real concern.

Some examples of potential charges in these cases include:

Customs Violations

Unpaid duties pose the risk of facing charges under the federal customs fraud statute (19 USC Section 1592). Under this statute, the penalties that are on the table depend on whether the government asserts allegations of intentional fraud, willful blindness, gross negligence, or ordinary negligence. For example, while violations involving negligence can trigger penalties of up to twice the government’s lost revenue, violations involving intentional fraud can trigger penalties of up to the fair market value of the imported goods involved.

Smuggling

In some cases, federal prosecutors will charge customs brokers with smuggling foreign goods into the United States. Under 18 USC Section 545, smuggling charges carry up to a $250,000 fine and up to 20 years of imprisonment. To pursue smuggling charges under Section 545, federal prosecutors must be able to prove that a customs broker acted “knowingly and willfully, with intent to defraud the United States.”

False Claims Act (FCA) Violations

The False Claims Act (FCA) prohibits the submission of “false or fraudulent claims” to the federal government—including false claims related to customs duties owed. While the DOJ needs evidence of intent to pursue criminal charges against bad actors, even errors made in good faith can result in significant civil liability. Under the FCA, civil penalties for customs fraud can be up to three times the duties owed.

Attempt and Conspiracy

Attempt and conspiracy charges are common in cases involving what appear to be intentional efforts to evade federal customs duties. When accused of conspiring with freight forwarders, importers, or other companies, customs brokers can face serious criminal charges even if they were only tangentially involved in the alleged fraudulent scheme.

Other Federal Offenses

From wire fraud to money laundering, customs broker fraud investigations can lead to several other federal charges as well. These charges carry the potential for substantial fines and prison time. Notably, CBP can also impose disciplinary actions against customs brokers accused of making material false statements in customs declarations—and customs brokers can face these consequences regardless of whether the DOJ has the evidence it needs to pursue criminal charges in federal court.

Should You Consider a Voluntary Self-Disclosure (or Prior Disclosure)?

Customs brokers who are aware of federal violations may be able to mitigate their risk by submitting a voluntary self-disclosure (or prior disclosure) to CBP. Prior disclosures can protect customs brokers from facing high-risk investigations, and they can help customs brokers avoid liability for penalties they might otherwise incur. In complex trade fraud cases involving the risk of criminal prosecution, cooperation agreements entered into following prior disclosures can also mitigate potential prison sentences.

With that said, submitting a voluntary self-disclosure to the federal government can be risky, so an informed, cautious, and strategic approach is required. If you think that submitting a prior disclosure might be your best option under the circumstances at hand, we strongly encourage you to speak with one of our international trade lawyers before you make any decisions.

FAQs: Protecting Yourself During a Customs Enforcement Investigation

What are some potential defenses to allegations of customs broker fraud?

Customs brokers accused of fraud in the United States may have various defenses available to avoid or mitigate their liability. For example, in cases involving alleged misrepresentations in customs documents, the government must be able to prove that the alleged misrepresentations were material to its decision-making or revenue collection. If the government cannot meet this burden of proof, then no penalties should be imposed.

Additionally, if customs brokers have documentation of their compliance efforts, this documentation could prove essential for defending against allegations of fraud. Documenting customs brokers’ internal compliance programs and consistent compliance practices can help administrate their adherence to reasonable care standards—and this can go a long way toward facilitating a favorable resolution.

Can customs brokers contest penalties imposed by CBP?

Yes, customs brokers can contest penalties imposed by CBP when warranted. This can involve either: (i) contesting liability (seeking remission); or, (ii) asserting mitigation to reduce the amount owed. Filing a petition for remission or mitigation requires evidence of either compliance with the law or mitigating factors such as lack of intent. If CBP upholds its initial decision, customs brokers can appeal an adverse CBP decision to the US Court of International Trade within 60 days. We handle these cases as well.

What is the Trade Fraud Task Force? Why has it contacted me?

The Trade Fraud Task Force is a joint task force of the US Department of Justice (DOJ) and US Department of Homeland Security (DHS). It was formed in August 2025, and since then it has reported more than $1 billion in customs fraud recoveries.

If you are facing scrutiny from the Trade Fraud Task Force as a customs broker, this means that you are at risk of facing serious charges for customs fraud under federal law. This is a high-risk scenario, and you should consult with experienced defense counsel as soon as possible.

What should I do if I am facing a whistleblower complaint under the False Claims Act?

The False Claims Act’s qui tam provisions provide strong protections for whistleblowers, and they entitle whistleblowers to between 15% and 30% of the government’s recovery in successful cases. As a result, whistleblowers have strong incentives to come forward, and federal authorities routinely work with whistleblowers in customs fraud cases.

Here too, experienced legal representation is essential. The False Claims Act includes provisions for both civil and criminal enforcement, and targeted customs brokers can face substantial fines or prison time (or both) depending on the allegations put forward. If you need defense counsel for a False Claims Act case, we can help, and we strongly encourage you to contact us right away.

Schedule a Free and Confidential Consultation with a Customs Fraud Defense Lawyer at Oberheiden PC

If you need to speak with a customs fraud defense lawyer about a federal investigation or law enforcement proceeding—or if you need to challenge CBP’s assessment of customs duties—we invite you to get in touch. To discuss your situation with a senior lawyer at Oberheiden PC in strict confidence as soon as possible, call 888-680-1745 or request a free consultation online now.

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