U.S. Customs and Border Protection aids in trade fraud case with 2 arrests, $13.6M gold seizure

U.S. Customs and Border Protection officers with the John F. Kennedy International Airport partnered with Homeland Security Investigations and the Internal Revenue Service in a multiyear trade fraud investigation that led to two arrests, the seizure of $13.36 million in gold, and the identification of a suspected $86.47 million in evaded duties.

Working with HSI and IRS, CBP officers and import specialists conducted targeted examinations and analysis that revealed a suspected scheme to route gold jewelry shipments through a foreign intermediary and return them to the United States under the guise of “U.S. goods returned,” significantly reducing duties owed. Examinations found discrepancies between outbound materials and inbound finished products and timelines inconsistent with processing.

On Nov. 10, CBP personnel assisted HSI and IRS with the arrests of two individuals on federal charges that include making false statements, wire fraud, and money laundering. The following day, CBP supported the execution of federal search warrants at a commercial facility in Brooklyn and on an outbound shipment, resulting in the seizure of approximately $7.2 million in gold at the facility and $6.16 million in gold from the outbound shipment.

“This case underscores CBP’s role in safeguarding the U.S. economy by enforcing trade laws and holding suspected bad actors accountable,” said CBP’s New York Field Office Director of Field Operations Francis J. Russo. “Our officers and import specialists used data-driven targeting and meticulous examinations to help disrupt this suspected duty-evasion scheme while facilitating legitimate commerce.”

The investigation remains ongoing. HSI and IRS are leading the criminal investigation with continued support from CBP’s New York Field Office. The charges and allegations are merely accusations; the defendants are presumed innocent unless and until proven guilty in a court of law.

For additional case updates, please refer to the appropriate prosecutorial authorities. CBP will have no further comment at this time.