Washington, DC –May 20, 2026 – Royal Canadian Steel Inc., Farjess Inc., and their President and part-owner, Feroz Jessani, have agreed to pay $19 million plus interest to the federal government to settle a False Claims Act lawsuit alleging that the companies engaged in customs fraud. The settlement resolves claims that the companies fraudulently avoided paying duties by misrepresenting the country of origin on entry documentation presented to U.S. Customs and Border Protection for steel sold to U.S. customers. The companies allegedly claimed that the steel they sold was made in Canada, allowing them to avoid customs duties imposed on steel from its actual sources in China, Italy, Indonesia, Turkey, and Vietnam. Phillips & Cohen LLP brought the case in 2023 on behalf of a whistleblower who will now receive 19% of the U.S.’s recovery. Royal Canadian Steel and Farjess are located in Brampton, Ontario, Canada.
Cracking down on customs evasion is a top priority for the Trump administration. Last August, the Department of Justice (DOJ) launched a cross-agency Trade Fraud Task Force to bring “robust enforcement against importers and other parties who seek to defraud the United States.” The Task Force aims to strengthen coordination between the DOJ’s Civil and Criminal Divisions and the Department of Homeland Security to pursue enforcement actions against companies that seek to evade tariffs and other duties.
“Customs evasion puts law-abiding companies at a disadvantage, harming the US marketplace,” said Stephen Hasegawa, a partner with the whistleblower law firm Phillips & Cohen LLP. “DOJ was all over this from the moment we filed it in 2023. It’s clear that the government is committed to addressing customs fraud. DOJ showed that commitment by devoting attention, resources, and talented lawyers to this case.” Phillips & Cohen thanked DOJ Trial Attorney James Nealon and Eastern District of Michigan Assistant United States Attorney John Postulka for their hard work on the case.
“The speed of this settlement shows the importance the administration is placing on customs enforcement,” said Edward Arens, a partner at Phillips & Cohen LLP. “We are proud to represent the whistleblower who exposed this fraud.”
The whistleblower lawsuit alleges that from May 1, 2019, through January 31, 2025, Royal Canadian Steel and Farjess knowingly avoided paying the proper U.S. duties assessed on steel under the Trade Expansion Act of 1962, the Trade Act of 1974, and other customs laws.
“Customs fraud deprives U.S. companies of a fair and competitive marketplace,” said John Tremblay, a partner at Phillips & Cohen LLP. “Our client’s decision to speak out shows the importance of people with inside knowledge participating in tariff fraud enforcement.”
The False Claims Act allows entities to file a lawsuit on behalf of the US government for fraud committed against the government and share in the financial recovery, usually between 15 and 30 percent.
Phillips & Cohen is the nation’s most successful law firm representing whistleblowers. The firm’s cases have helped recover more than $13 billion in civil settlements and criminal fines. Phillips & Cohen represents whistleblowers in qui tam lawsuits as well as whistleblower claims under other reward programs including the SEC, CFTC, and IRS whistleblower programs. If you are aware of potential fraud involving government programs or funds, contact Phillips & Cohen to discuss your situation confidentially.
DOJ’s press release: Office of Public Affairs | Canadian Steel Companies and Owner to Pay $19M to Settle False Claims Act Allegations Relating to Evaded Customs Duties | United States Department of Justice