Italian national Claudio Fogale, who had been incarcerated on federal charges for nearly one month, was released from jail following an application filed by his defense attorney, Anthony J. Mahajan. According to public documents and court proceedings, Mr. Fogale is charged with participating in a wire fraud conspiracy involving UBS Gold, an Indonesian-based jewelry company. On November 17, 2025, the U.S. Department of Justice (DOJ) unsealed a Criminal Complaint against Mr. Fogale and others alleging that UBS Gold used a Jordanian company to ship more than $1.2 billion in jewelry to U.S.-based customers in a manner that evaded approximately $86 million in customs duties and tariffs. These alleged activities are serious and reflect the expansive reach of multiple federal enforcement agencies, including Homeland Security Investigations (ICE), IRS-Criminal Investigation, and U.S. Customs and Border Protection (CBP).

The federal prosecution of Mr. Fogale reflects a marked escalation in federal enforcement targeting global supply chains, country-of-origin designations, and tariff compliance.

The federal prosecution of Mr. Fogale reflects a marked escalation in federal enforcement targeting global supply chains, country-of-origin designations, and tariff compliance. He is represented by Anthony Mahajan, the founding partner of Health Law Alliance, whose extensive background in complex federal investigations has resulted in charges being dropped pretrial by the same U.S. Attorney's Office prosecuting the case against Mr. Fogale. The firm's engagement in this matter represents a natural expansion of its bustling import and export regulatory practice involving API, GLP-1, and peptide manufacturers who ship goods into the United States from foreign countries, including China, India, and Mexico, and deep experience with federal agencies across administrative, civil and criminal forums, including under the False Claims Act.

Alleged Customs Duty & Tariff Evasion

The Criminal Complaint alleges two distinct schemes, one to avoid customs duties through allegedly false country-of-original labeling, and the second to avoid tariffs through U.S.-based manufacturing facilities that did not, in fact, manufacture finished goods. First, the defendants are alleged to have trans-shipped jewelry through Jordan following the expiration, in 2020, of duty-free treatment for Indonesian exports under the Generalized System of Preference ("GSP") program. The government alleges that the jewelry at issue was manufactured in Indonesia, and that by shipping it through Jordan, which had a Free Trade Agreement with the United States, the defendants were able to avoid the duty that would otherwise have applied.

Second, beginning in or about 2025, the United States imposed tariffs for the importation of goods into the United States from many different countries, including Indonesia and Jordan. The tariffs, however, excepted goods manufactured in the United States. According to the Criminal Complaint, the defendants allegedly shipped scrap gold from the United States to Jordan, claiming that it simply needed to be assembled or finished in Jordan. In addition, the defendants allegedly swapped the scrap gold for jewelry that had been manufactured in Indonesia and shipped to Jordan, which was then imported back into the United States tariff-free.

The Complaint alleges a one-count violation of 18 U.S.C. 1349 (conspiracy) to violate 18 U.S.C. 1343 (wire fraud), which carries a maximum sentence of incarceration of 20 years. In contrast, the government has previously used 18 U.S.C. 541 (entry of goods falsely classified), and 18 U.S.C. 542 (entry of goods by means of false statements), to target customs and import frauds, both of which statutes carry far lower maximum sentences.

The Government's Trade Fraud Task Force

In August 2025, the government launched a cross-agency Trade Task Force to bring enforcement actions against importers and other parties who seek to defraud the United States. According to the DOJ's announcement, the Task Force is charged with advancing President Trump's "America First Trade Policy" through duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and criminal prosecutions, penalties and seizures under federal law.

Further to this initiative, the Task Force has incentivized "whistleblowers" to make referrals to DOJ's Corporate Whistleblower Program and to utilize the qui tam provisions of the False Claims Act to alert the government to credible allegations of fraud.

Mr. Fogale's Application for Pretrial Release

In a December 9, 2025, filing, Mr. Mahajan disputed the evidence against Mr. Fogale, calling it "thin, at best." Specifically, rules around country-of-origin labeling are extremely complicated, and Mr. Fogale is not alleged to have had any role or influence in the labeling determination. For example, the Complaint alleges that "the United States imposed duties on the importation of products from Indonesia pursuant to the Harmonized Tariff Schedule of the United States," but Mr. Fogale, an Italian citizen, is not alleged to had any job responsibilities relating to the Harmonized Tariff Schedule, in a compliance function or otherwise.

Similarly, with respect to the alleged tariff evasion scheme, the Complaint admits one of the companies involved in the purported scheme "asked a customs broker whether this type of scheme was permissible," and the customs broker "then asked a CBP official in the United States about the scheme," who cited "substantial transformation" ambiguities relating to the country-of-origin. In fact, the CBP official opined merely that importers would be "treading on thin ice," not that the operation was illegal and subject to criminal prosecution.

Mr. Fogale was released from the Essex County Correctional Facility just two days after the filing of his application.

Accordingly, the government ultimately agreed that bail was appropriate, and Mr. Fogale was released from the Essex County Correctional Facility on December 11, 2025, just two days after the filing of his application. Mr. Fogale is required to remain in the United States pending resolution of charges against him.

How HLA Can Help

Health Law Alliance and its founding partner, Anthony Mahajan, are renowned for defending clients against federal enforcement, including criminal prosecutions and claims under the False Claims Act. The firm has obtained complete acquittals of multiple individuals accused of fraud against the government, and won dismissals or achieved successful settlements of "whistleblower" litigation in various federal courts across the country. With global trade enforcement intensifying, companies and individuals need counsel who understand the intersection of federal criminal law, complex regulatory requirements, and novel prosecution theories.