Feds: Chicago is key in trade fraud fight

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – Federal officials came to Illinois this week to announce the results of a major crackdown on trade fraud.

At a news conference in the Chicago suburb of Bensenville on Tuesday, U.S. Assistant Attorney General Colin McDonald announced that the Trade Fraud Task Force, which launched in August 2025, recently surpassed $1 billion in criminal and civil recoveries, penalties, forfeitures and charged losses.

“Our goal is to protect taxpayer dollars and stop the brazen thievery of America’s wealth and generosity,” McDonald said.

Flanked by officials from other federal agencies, McDonald said foreign actors develop schemes that can price mom-and-pop shops out of business.

“That is a core issue that we are focused on is to make sure that the American businesses are in a fair fight,” McDonald said.

The task force was established by the Department of Justice and the Department of Homeland Security to investigate and prosecute those who defraud the government through misrepresentations to U.S. Customs and Border Protection.

McDonald said the milestone case in Chicago that brought the task force to the $1 billion mark involved customs duty evasion schemes involving the false declaration of countries of origin for gold jewelry.

“Trade fraud schemes impose severe financial consequences to the United States, depriving the country of billions of dollars every year,” McDonald said.

McDonald said the fraud schemes threaten U.S. national and economic security, steal from taxpayers, undermine American businesses, fund foreign adversaries, introduce hazardous products and exploit modern-day slavery.

U.S. Attorney for the Northern District of Illinois Andrew Boutros said the ground work for the task force was laid by a case he took on in 2008 that involved falsely-declared and adulterated honey from China.

“The key roads for trade fraud enforcement lead from, to and through Chicago, both past, present and now future,” Boutros said.

Boutros said Chicago remains one of the largest inland ports in the country.

McDonald said whistleblowers are highly valuable to trade fraud enforcement.

“There is whistleblower protection and there are also whistleblower payments that can come by virtue of recovering in those cases,” McDonald said.

Whistleblowers can alert the government to credible allegations of fraud through provisions of the False Claims Act or through an online form.

The U.S. Government Accountability Office estimated in April 2024 that the federal government loses between $233 billion and $521 billion annually to fraud.

Brett Rowland contributed to this story