Two Brampton-based steel companies and one of their executives have agreed to pay $19 million (U.S.) to settle allegations from the U.S. Department of Justice that they improperly avoided paying duties on imported steel products.<\/p>\n
According to U.S. officials, Farjess Inc., Royal Canadian Steel Inc. and company president and part-owner Feroz Jessani knowingly misrepresented the origin of flat-rolled steel imported into the United States between May 2019 and January 2025.<\/p>\n
The settlement resolves allegations only and does not constitute an admission of wrongdoing.<\/p>\n
The U.S. Department of Justice alleges the companies falsely claimed the steel originated in Canada or the United States when it was actually manufactured in China, Indonesia, Italy, Turkey and Vietnam. By doing so, officials allege the companies avoided paying duties owed to U.S. Customs and Border Protection.<\/p>\n
The allegations were resolved through a civil settlement under the U.S. False Claims Act. Officials noted there has been no determination of liability.<\/p>\n
\u201cImport duties serve an important role in protecting our national interests generally and the American steel industry in particular,\u201d said Assistant Attorney General Brett Shumate of the Justice Department\u2019s Civil Division. \u201cThe Department of Justice will zealously pursue anyone who fraudulently evades the duties owed on steel products imported into this country.\u201d<\/p>\n
U.S. Attorney Jerome Gorgon Jr. for the Eastern District of Michigan said approximately half of all land trade between Canada and the United States passes through the district.<\/p>\n
\u201cOur border is the frontline of American industry,\u201d Gorgon said. \u201cWe will continue to protect our businesses from foreign fraudsters.\u201d<\/p>\n
The investigation began following a whistleblower lawsuit filed by broker Shamsh Dhala under provisions of the False Claims Act that allow private citizens to sue on behalf of the U.S. government. As part of the settlement, Dhala will receive approximately $3.61 million.<\/p>\n
Homeland Security Investigations and U.S. Customs and Border Protection assisted in the cross-border investigation.<\/p>\n
Officials said the case was part of a broader effort by the Department of Justice\u2019s Trade Fraud Task Force, which targets tariff evasion and trade-related fraud schemes.<\/p>\n
\u201cSince 1789, the United States has imposed tariffs and collected customs duties on imports to fund government operations, provide public services and protect American industry,\u201d said Jared Murphey, acting special agent in charge of Homeland Security Investigations\u2019 Detroit field office. \u201cThis record-setting settlement underscores HSI\u2019s commitment to protecting American manufacturers and consumers from unfair trade practices.\u201d<\/p>\n
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