CBP Trade Fraud Probe: Two Arrested, $13.6M Gold Seized

CBP Trade RSS

Filed November 17th, 2025

Detected March 1st, 2026

Summary

U.S. Customs and Border Protection (CBP) announced the arrest of two individuals and the seizure of $13.6 million in gold as part of a trade fraud investigation. The probe identified an estimated $86.47 million in evaded duties through a scheme involving misrepresenting gold jewelry shipments.

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What changed

CBP, in conjunction with Homeland Security Investigations (HSI) and the Internal Revenue Service (IRS), has concluded a multiyear trade fraud investigation resulting in two arrests and the seizure of approximately $13.6 million in gold. The investigation revealed a suspected scheme to evade duties by routing gold jewelry through a foreign intermediary and falsely declaring it as "U.S. goods returned." This alleged scheme is estimated to have evaded $86.47 million in duties.

Two individuals have been arrested on federal charges including false statements, wire fraud, and money laundering. CBP assisted in executing search warrants that led to the gold seizure. The investigation remains ongoing, with HSI and IRS leading the criminal aspects. Companies involved in importing gold jewelry should ensure compliance with duty declarations and import regulations to avoid potential penalties and investigations.

What to do next

Review import procedures for gold and jewelry shipments.
Ensure accurate declaration of goods and compliance with duty requirements.
Verify the legitimacy of foreign intermediaries and "U.S. goods returned" claims.

Penalties

Suspected $86.47 million in evaded duties; individuals arrested on federal charges including false statements, wire fraud, and money laundering.

Source document (simplified)

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CBP plays major role in HSI, IRS trade fraud probe; two arrested, $13.6 million in gold seized; suspected $86.47 million in duties evaded

CBP plays major role in HSI, IRS trade fraud probe; two arrested, $13.6 million in gold seized; suspected $86.47 million in duties evaded

Release Date Mon, 11/17/2025 For More Information (202) 344-1780 NEW YORK, N.Y. — 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.

U.S. Customs and Border Protection (CBP) is America's frontline: the nation's largest law enforcement organization and the world's first unified border management agency. The 67,000+ men and women of CBP protect America on the ground, in the air, and on the seas. We enforce safe, lawful travel and trade and ensure our country's economic prosperity. We enhance the nation's security through innovation, intelligence, collaboration, and trust.