DOJ Announces Charges for False Country-of-Origin Claims and Tariff Evasion Through Undervaluation

Key Notes

• Tariff undervaluation may result in criminal charges.
• False country of origin may result in government procurement-related fraud charges, not only tariff-related fraud charges.

The Department of Justice (DOJ) in September announced the unsealing of an indictment charging two Colorado companies and three executives with a multiyear scheme to sell Chinese made forklifts to the U.S. government while falsely representing that the equipment was manufactured in the U.S. and compliant with the Buy American Act and the Trade Agreements Act. The charges span 27 counts, including conspiracy to commit wire fraud, wire fraud, making materially false statements, and conspiracy to defraud the United States.

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Partner Brian Lanciault of the firm’s Business Litigation and White Collar Defense & Investigations practice groups co-authored this article.