Blog
Import Export Business Criminal Case
Import Export Business Criminal Case: When Federal Agents Come Knocking
The HSI agent standing in you’re warehouse doesn’t care that you’ve been in buisness for 20 years. They don’t care that you thought your customs broker was handling everything correctly. They care about the $2.3 million in undervalued shipments there audit uncovered—and wether your facing 10 years in federal prison. Your spouse is calling. Your employees are watching. The agent is asking if you want to “cooperate” or if you need to “call someone.” You got maybe 72 hours to make the decision that determines if you walk away with a fine or spend the next decade behind bars.
Here’s what actually happens when your import/export business becomes a federal criminal case, which agencies are involved, and the critical decisions you face right now.
The First 72 Hours – What Federal Contact Actually Means
Look, here’s the deal. When Homeland Security Investigations (HSI), U.S. Customs and Border Protection, or IRS Criminal Investigation shows up, your in a narrow window where everything you say and do matters. Most business owners think cooperating immediantly proves they got nothing to hide.
Wrong. Dead wrong.
The evidence they already have shows a pattern—misclassified goods, undervalued invoices, exports without proper licenses. They wouldn’t be at you’re door if they didn’t think they had a case. The question ain’t whether you did something wrong. The question is wether its a civil violation you can fix with money or a criminal case that destroys everything.
Federal agents investigating import/export violations typically come from one of these agencies:
- Homeland Security Investigations (HSI) – criminal smuggling, duty evasion, export violations
- U.S. Customs and Border Protection (CBP) – initial detection, administrative enforcement
- IRS Criminal Investigation – tax fraud, money laundering connected to trade
- FBI – certain export control cases, especially involving sanctions
If HSI is involved from the start, irregardless of what they say about “routine questions,” their looking at criminal prosecution. CBP handles civil stuff. HSI handles putting people in prison. Thats the diffrence.
But here’s the thing nobody tells you—the informal $100,000 threshold. Based off prosecutorial economics and actual case patterns, if the alleged duty loss or violation value is under $100K and appears unintentional, it probly stays civil. Over $100K? Your getting serious attention. Over $250K? Your almost definately facing criminal referral to the U.S. Attorney’s Office. Over $1M, like the recent Indonesian jewelry company case in November 2025 involving $136 million in duty evasion? They want prison time.
What you do in the first 72 hours:
Do not talk to federal agents without a lawyer present. I don’t care how innocent you think you are. I don’t care if you beleive cooperating shows good faith. Every statement you make—even “I thought my broker handled that”—becomes evidence. The agent who seems sympathetic is building a case, not helping you.
If agents show up without a warrant and ask to “have a conversation,” you have the right to politely decline and say you’ll have your attorney contact them. If they have a search warrant, let them execute it, but don’t answer questions beyond identifying yourself. Dont try to “explain” anything becuase you’ll make it worse.
If you recieve a grand jury subpoena or target letter, you have a short window to potentially prevent charges through pre-indictment negotiation with the Assistant U.S. Attorney handling the case. But only with experienced counsel who knows the AUSA’s in that district.
Which Federal Agency Is After You (And Why It Matters)
Different agencies have different goals, different tools, and different standards for prosecution. Understanding who is investigating you determines you’re entire strategy.
Bureau of Industry and Security (BIS) enforces export controls under the Export Administration Regulations. BIS is primarily administrative – they want compliance programs fixed, civil penalties paid, export priveledges maybe suspended. They can refer cases to DOJ for criminal prosecution, but alot of BIS investigations stay civil if you cooperate and fix the violations. Civil penalties from BIS can reach hundreds of thousands or millions per violation, but your not going to prison.
Office of Foreign Assets Control (OFAC) enforces U.S. sanctions programs. Here’s the thing—OFAC has authority to freeze your business bank accounts before any criminal charges are filed. They operate on a civil administrative track that runs parallel to any criminal investigation. So you could be negotiating with prosecutors while OFAC freezes every dollar you own, destroying you’re ability to pay for defense or keep you’re business running. This is the biggest trap nobody warns you about. OFAC doesn’t care about intent—strict liability. If you’re company did business with a sanctioned entity or individual, even unknowingly through intermediaries, OFAC can impose penalties that exceed $1 million per violation.
State Department Directorate of Defense Trade Controls (DDTC) enforces the International Traffic in Arms Regulations (ITAR). ITAR violations involving defense articles or defense services are taken very seriously. Criminal penalties under ITAR can reach up to $1 million and 10 years imprisonment per violation. Civil penalties from DDTC can also exceed $1 million per violation.
Homeland Security Investigations (HSI) is the criminal investigative arm. When HSI leads the investigation—especially if there working with IRS-CI—your facing potential criminal charges. HSI investigates smuggling, duty evasion, export violations, trade-based money laundering. They execute search warrants, flip cooperators, build conspiracy cases. There goal is prosecution, not compliance.
U.S. Customs and Border Protection (CBP) is the frontline. They inspect shipments, assess duties, detain cargo. Most CBP activity is administrative. But when CBP finds something that looks intentional—systematic undervaluation, trans-shipment through third countries to hide origin, falsified documents—they refer to HSI for criminal investigation. The recent November 2025 case where CBP supported HSI and IRS in a trade fraud probe shows this coordination.
Real talk: if CBP contacts you about “discrepancies,” that could go either way. If HSI contacts you, assume criminal. If OFAC contacts you, assume your accounts could be frozen any day. If BIS contacts you, you might have a path to civil resolution if you act fast.