DOJ is Pursuing Tariff Evasion Case Against Forklift Manufacturers

According to Baker McKenzie’s Global Import Blog, the Department of Justice has filed criminal charges against two forklift manufacturers and three executives, accusing them of tariff evasion and procurement fraud.

The scheme allegedly rested on the false claim that Chinese-made forklifts were U.S.-manufactured. The indictment, United States of America v. Octane Forklifts, Brian Lee Firkins, Joseph Ryan Antczak, Jeffrey William Blasdel, was returned by a federal grand jury in Colorado in August 2025.

It alleges that the defendants falsified country-of-origin labels and under-reported import values, depriving the U.S. government of over $1 million in tariffs and duties.

The charges were announced shortly after the DOJ and the Department of Homeland Security launched the Trade Fraud Task Force, a new interagency initiative focused on customs fraud, tariff evasion, and product mislabeling.

The task force integrates civil and criminal enforcement resources to protect federal procurement integrity and promote fair competition. It aims to pursue violators who manipulate origin certifications or falsify import declarations.

The case is being prosecuted by the DOJ Antitrust Division’s Procurement Collusion Strike Force, signaling heightened enforcement against trade and sourcing misrepresentations in government contracting.

The initiative reflects a broader trend toward criminal enforcement of trade-related offenses that were traditionally handled as civil matters.

According to the indictment, the defendants allegedly removed “Made in China” labels, re-branded forklifts as American-made, and submitted false certifications to qualify for contracts governed by the Buy American and Trade Agreements Acts.

Prosecutors further allege that undervalued invoices were used to evade import duties. Multiple federal agencies participated in the investigation, including military and inspector general offices across the defense and homeland security sectors.

Legal teams should be aware that there is a multi-agency strategy to merge antitrust and trade enforcement. Apparently, there is increasing scrutiny on contractors’ sourcing and import practices. Expect a sustained focus on Buy American compliance, supply chain transparency, and accurate customs reporting.