This National Law Review article highlights recent SEC enforcement developments — focused on new cases the SEC brought, instead of old cases it dismissed. It reports that, in the second quarter, every case filed in district court alleged fraud, which may suggest that enforcement was focused on egregious conduct, and less on technical violations. It also says, “it is no surprise that the SEC now files all of its fraud cases in district court (where a jury is available) and not in its administrative forum (where cases are decided by administrative law judges),” after the Supreme Court held in Jarkesy that, “when the SEC seeks civil penalties for securities fraud, the defendant is entitled to a jury trial.”

At the DOJ, one of the more recent areas of focus is import-related fraud, especially U.S. tariffs and duties evasions. Per this Troutman Pepper alert, targeted conduct includes:

– Undervaluing imported goods to reduce duties owed;
– Falsifying country-of-origin information, including deceptive labeling or transshipment to conceal origin;
– Misusing free trade agreement preferences (e.g., under the U.S.-Mexico-Canada Agreement) without meeting eligibility requirements;
– Improperly classifying products to secure a lower duty rate or avoid tariffs entirely; and
– Structuring transactions to sidestep tariffs, such as Section 301 duties on Chinese-origin goods or Section 232 tariffs on steel, aluminum, automobiles, and automotive parts.

It suggests companies renew their focus on import compliance by:

– Auditing import records and customs filings for potential misstatements or misclassifications;
– Reviewing supplier declarations and country-of-origin certifications, especially for goods sourced from high-risk jurisdictions;
– Ensuring trade compliance policies and training are updated and applied consistently across the business; and
– Conducting internal investigations where potential red flags exist and preparing for voluntary disclosure where appropriate.

– Meredith Ervine