Tariff Enforcement at the Forefront: Importer Agrees to Pay $549.5 million in Largest-Ever Trade-Related False Claims Act Settlement

On May 12, 2026, the U.S. Department of Justice (“DOJ”) announced a $549.5 million settlement with Perfectus Aluminum Acquisitions LLC (“Perfectus Aluminum”) and four affiliated warehousing companies (collectively, “the Warehouses”) to resolve allegations that they violated the False Claims Act (“FCA”) by evading customs duties.[1] The settlement is the largest trade-related settlement under the FCA.

The matter was initiated by qui tam cases brought by individuals who worked for U.S.-based competitors and the Aluminum Extrusion Counsel and was ultimately coordinated through DOJ’s Trade Fraud Task Force, which involved cooperation between DOJ and the Department of Homeland Security (“DHS”). This case highlights the increasing use of the FCA to hold importers liable for the underpayment of customs duties, the Administration’s commitment to enforcing U.S. customs laws, and the potential for competitors and former employees to harness the FCA to motivate federal investigations into allegations of trade fraud.

Case Overview

Perfectus Aluminum and the Warehouses imported large volumes of aluminum extrusions from China, which are subject to antidumping and countervailing duties upon importation into the United States. The aluminum extrusions were spot-welded together to resemble pallets and declared upon importation as finished merchandise exempt from the antidumping and countervailing duties. The qui tam actions were initially brought against Perfectus Aluminum and the Warehouses in 2015, 2017, and 2018.

Earlier this month, Perfectus Aluminum agreed to sell the Warehouses and the imported extrusions, an approximate value of $549.5 million, and pay that amount to resolve allegations that it violated the FCA by knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States on the aluminum extrusions imported from China. Under the settlement agreement, the United States will release Perfectus Aluminum from civil claims related to the importation of the aluminum extrusions once it receives the revenue from the sale of the Warehouses and the extrusions. The whistleblowers, including the CEO and president of a U.S. competitor of Perfectus Aluminum and a U.S. aluminum extrusions association, will receive 17.5% of the settlement – roughly $96 million – paid by Perfectus Aluminum to the United States.

In addition to the recent FCA resolution, Perfectus Aluminum was criminally convicted of conspiracy to defraud the United States, wire fraud, and money laundering in August 2021.[2] The convictions were appealed and then affirmed by the U.S. Court of Appeals for the Ninth Circuit in July 2024.[3] As part of those convictions, Perfectus Aluminum and the Warehouses were ultimately ordered to pay over $1.8 billion in restitution to U.S. Customs and Border Protection (“CBP”).

Takeaways

While the original qui tam cases were filed prior to the second Trump Administration, the subsequent involvement of the government was coordinated through the Trade Fraud Task Force, which was established in 2025 to target trade fraud and circumvention of duties on imported goods. With the imposition of additional tariffs since February 2025, the Administration has repeatedly emphasized its commitment to enforcing trade laws to ensure the collection of tariffs owed on imported goods.[4] This settlement illustrates how the FCA is increasingly being used to target alleged trade violations. The case also highlights the role that whistleblowers and qui tam lawsuits play in tariff enforcement, as well as how much whistleblowers stand to gain when trade fraud allegations are investigated and prosecuted.

As the Administration continues to impose additional tariffs on imported goods, importers will face an increasingly complex and high-risk tariff and enforcement environment. It is now more important than ever for importers to have documented policies and procedures over substantive customs compliance areas, including tariff classification, country of origin and marking, and customs valuation. Such procedures should be periodically tested and improved to ensure they are reliable and effective. In addition, importers considering tariff mitigation strategies should thoroughly vet those strategies to ensure that they comply with U.S. customs law. Law enforcement authorities are increasingly questioning and investigating the information reported by companies on their customs declarations and companies should be taking steps today to ensure they are prepared to respond.

[1] Press Release, Department of Justice, Perfectus Aluminum Inc. and Related Companies Agree to Pay $549.5M to Settle False Claims Act Allegations Related to Evaded Customs Duties (May 12, 2026), https://www.justice.gov/opa/pr/perfectus-aluminum-inc-and-related-companies-agree-pay-5495m-settle-false-claims-act.

[2] United States v. Perfectus Aluminum Inc., et al., No. 2:19-cr-00282-GK.

[3] United States v. Scuderia Dev., LLC, No. 22-50080, 2024 WL 3594382 (9th Cir. July 31, 2024).

[4] For example, in May 2025, DOJ announced that trade and customs fraud is an enforcement priority. Memorandum from Department of Justice, Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime (May 12, 2025), https://www.justice.gov/opa/media/ok.1400141/dl.

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