Global Trade Investigations: Manifest Fraud Defense

Our Law Firm Represents Clients That Are Under Investigation and Facing Charges for Manifest Fraud in the US and Worldwide

Manifest fraud carries severe penalties under federal law. From misrepresenting cargo to making false statements to federal agents, allegations of manifest fraud can take many different forms. Defending against all types of allegations requires legal counsel experienced in global trade investigations and federal defense.

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

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

Oberheiden PC is a global trade law firm that defends clients in the United States and around the world in federal law enforcement matters. This includes manifest fraud investigations and related civil and criminal proceedings. Manifest fraud cases can involve a wide range of legal issues; and, to defend themselves effectively, targeted businesses (and individuals) need to execute a sound and strategic defense grounded in applicable law.

If your business has been accused of manifest fraud, understanding the specific nature of the government’s allegations will be a key first step. Once you know what you need to defend against, then you can determine an appropriate course of action. With decades of combined experience, our attorneys can help you make informed and strategic decisions, and we can communicate directly with US Customs and Border Patrol (CPB) and the US Department of Justice (DOJ) on your behalf.

Allegations of Manifest Fraud Pose Significant Risks

Allegations of manifest fraud pose significant risks. While civil enforcement is most common, manifest fraud can be prosecuted as a criminal offense if federal investigators find evidence of intent to defraud the United States. As the US Department of Justice (DOJ) explains:

“Manifest and conveyance data submitted to CBP must accurately reflect the contents, origin, and routing of all shipments. CBP reviews this data to identify anomalies, prevent illicit cargo movement, and ensure compliance with federal laws. Submission of false, incomplete, or misleading manifest information may result in enforcement actions, including cargo holds, seizures, and liquidated damages/penalties, as well as criminal or civil enforcement.”

Additionally, according to the DOJ, “[m]anifest fraud undermines the effectiveness of cargo screening and poses significant risks to border security.” As a result, combating manifest fraud is a priority for the DOJ and CBP, and this means that allegations of manifest fraud can lead to high-stakes federal investigations and criminal charges. In criminal cases, achieving a favorable outcome involves proving that the DOJ will not be able to substantiate allegations of fraud beyond a reasonable doubt.

Our Manifest Fraud Defense Services

We defend organizations and individuals in manifest fraud investigations involving all types of alleged unlawful conduct. We also defend clients in civil and criminal enforcement proceedings in federal court. Our defense services include:

US Defense Counsel for Manifest Fraud Investigations

Our attorneys rely on extensive experience to protect clients during manifest fraud investigations. Within our international trade practice, we provide representation for clients in the US and abroad that are facing investigations involving allegations of:

Concealment of Prohibited or Restricted Items

Federal law prohibits the importing and exporting of various types of commodities and technology. Several types of commodities and technology are subject to strict import and export restrictions as well. While inadvertently failing to disclose prohibited or restricted items on shipping documents can create exposure to civil penalties, allegations of intentional concealment of prohibited or restricted items can (and do) lead to serious criminal convictions.

False Commodity Descriptions

Misrepresentation of commodities or technology on an international shipping manifest can also lead to civil or criminal charges depending on the circumstances involved. Federal rules strictly prohibit false commodity descriptions, as they can be (and often are) used to conceal illegal activity such as import and export violations, theft, embezzlement, and other federal crimes. Here too, when facing allegations of intentional fraud, executing a strategic defense is critical for avoiding criminal charges that could lead to fines and imprisonment.

Making False Statements to CPB Agents

Making false statements to CPB agents in response to inquiries about an international shipping manifest can also lead to criminal charges under federal law. When going through the importing or exporting process, all parties involved must be extremely careful to avoid making any false or misleading statements that could lead to being convicted in federal court. While inadvertent misstatements should not expose parties to criminal penalties, prosecutors can pursue criminal charges in cases involving “knowing” false statements to CPB and other federal authorities.

Splitting Shipments to Avoid Regulatory Scrutiny

Splitting shipments to avoid regulatory scrutiny is another common allegation in global trade investigations focused on manifest fraud. Criminal allegations are common in these cases. When prosecutors allege that a defendant intended to commit fraud against the United States by splitting shipments, this can carry exposure to substantial fines and prison time.

US Defense Counsel for Manifest Fraud Cases

Our attorneys also rely on their experience to defend clients post-investigation in civil and criminal enforcement proceedings. We serve as defense counsel in cases involving all of the allegations discussed above, as well as other civil and criminal allegations under federal law.

In these cases, we utilize a variety of strategies to protect our clients by all means available. Some examples of these strategies include:

Using our clients’ documentation of compliance with industry standards to refute the DOJ’s fraud allegations
Demonstrating that our client engaged in good faith conduct and that allegations of manifest fraud are unwarranted
Demonstrating that negligence or a misunderstanding is to blame for a deviation that the DOJ is attempting to construe as intentional fraud
Asserting defenses such as duress and coercion to negate liability for fraud
Seeking to have our clients charges dropped due to procedural errors
Convincing prosecutors that they do not have the evidence needed to prove their fraud claims by clear and convincing evidence or beyond a reasonable doubt
Filing pretrial motions to challenge the DOJ’s evidence and seek dismissal of our clients’ charges
Fighting the DOJ’s allegations at trial when necessary and targeting favorable out-of-court settlements when warranted
Filing appeals when trials result in unfavorable judgments (when necessary)

While defending against allegations of manifest fraud often involves attacking the elements of intent and materiality, targeted businesses and individuals need to be careful to avoid making admissions that could lead to civil liability. Even when allegations of deliberate deception are unwarranted, ordinary mistakes can still warrant civil enforcement in many cases.

Legal Services Backed By Extensive International Experience

Our legal services are backed by extensive international experience. We represent clients throughout the US and worldwide in global trade and other cross-border enforcement matters. As a result, not only are we able to assist with manifest fraud defense, but we are able to assist with other high-stakes investigations and law enforcement proceedings as well. We also help clients proactively manage compliance with a focus on avoiding federal scrutiny going forward.

FAQs: Defending Against Allegations of Manifest Fraud

What do I need to do if my company is facing a manifest fraud investigation?

When facing a manifest fraud investigation, it is crucial to promptly preserve all records that may be relevant to the government’s inquiry. Preservation of relevant documents is essential for both building a strategic defense and avoiding allegations of destroying evidence or interfering with the government’s investigation. Experienced defense counsel should be able to assist with doing what is required.

How can I convince the US government that an error on a shipping manifest was unintentional?

In manifest fraud investigations, the question of intent can be critical. If prosecutors can prove intent, they can pursue criminal charges in federal court. If they cannot prove intent, civil liability could still be on the table, but you shouldn’t be at risk of facing criminal prosecution.

A timeline of events can help distinguish between ordinary mistakes and deliberate deception. If you can show that your company has consistently made good-faith efforts to comply with the law, this can help support a defense strategy focused on acknowledging an honest error. Notably, this can be a viable defense strategy in cases involving related allegations such as insurance fraud (i.e., allegations of falsifying or exaggerating a claim for financial gain) and securities fraud (i.e., allegations of misleading investors about the company’s legal compliance or profitability) as well.

What are the penalties for manifest fraud under federal law?

Since manifest fraud can lead to either civil or criminal allegations depending on the circumstances involved, potential penalties can vary widely. Generally speaking, potential penalties can include civil or criminal fines, administrative penalties (i.e., import and export restrictions), and federal prison time.

Do I need to engage US defense counsel for a manifest fraud investigation?

Yes, if your company is facing a manifest fraud investigation involving the DOJ, CPB, or other federal authorities, you should engage experienced US defense counsel promptly. Our experienced attorneys are available to help, and we can provide representation on an emergency basis if necessary.

Speak with a Senior Manifest Fraud Defense Attorney at Oberheiden PC

If your business is facing scrutiny from the DOJ or CPB, our team can help—but it is important that you contact us promptly. To arrange a free consultation with an experienced attorney at Oberheiden PC as soon as possible, call us at 888-680-1745 or contact us online now.

Related pages: