On October 1, 2026, the Department of Justice issued a follow-on directive sharpening and formalizing how trade and customs fraud will be investigated and prosecuted going forward, particularly where corporations are involved—building on an August 2026 memo and rule that created the National Fraud Enforcement Division (NFED).

Captioned “Corporate Enforcement in the Fight Against Fraud,” the October memo sets rules for how the Division’s attorneys will handle corporate investigations generally, naming trade fraud among the core categories NFED prosecutors are instructed to prioritize, alongside tariff evasion schemes and forced labor. The memo lays out aggravating factors prosecutors must weigh heavily in charging and resolution decisions—including management’s knowledge of or involvement in the fraud, efforts to conceal or obstruct oversight, conduct lasting 3 years or more, conduct spanning 3 or more federal districts, and conduct causing financial harm to 25 or more victims or $25 million or more in loss.

Importantly, the directive also reaffirms that voluntary self-disclosure, cooperation, and remediation remain meaningfully rewarded, while guarding against overbroad enforcement that could interfere with legitimate business operations. The Division has been directed to expand whistleblower incentives, including for whistleblowers who participated in the underlying conduct.

The NFED has built out a nationwide footprint quickly since its August 2026 launch, growing to approximately 500 attorneys and staff with a standalone Global Trade & Commerce Enforcement Section, and plans for continued growth over the next two years. Enforcement results already bear this out: the DOJ-DHS Trade Fraud Task Force surpassed $1 billion in combined civil and criminal recoveries, penalties, forfeitures, and publicly charged losses in under a year, including (i) evasion of Section 301 tariffs and antidumping/countervailing duties, (ii) eradication of forced labor from supply chains, and (iii) prosecution of criminal violations involving imported goods that threaten public health and safety.

For companies engaged in importing, customs brokerage, or downstream distribution, this signals that trade fraud investigations now sit alongside health care and tax fraud as top corporate enforcement priorities—making early self-disclosure and cooperation with law enforcement the clearest path to a favorable outcome.

For more information on this topic: DOJ Doubles Down on Trade Fraud Enforcement: What the Recent Priority Memo Signals for Importers

If you have specific questions, please contact Todd Gee or Cormac Connor. Husch Blackwell’s White Collar, Internal Investigations, & Compliance team is continually monitoring these developments and will provide updates.