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Canadian Steel Companies and Owner to Pay $19M to Settle False Claims Act Allegations Relating to Evaded Customs Duties

By Patrick Rowan, Alex J. Brackett, John Padgett, Edwin O. Childs, Brett Barnett, Michael J. Podberesky, Abram J. Pafford, Jack White, Jason M. Vespoli, Sophie Marsh & John Sullivan on May 28, 2026
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On May 20, 2026, the DOJ announced a settlement under the False Claims Act (FCA) with two Canada-based steel companies, Farjess Inc. and Royal Canadian Steel Inc., and their part-owner and president, Feroz Jessani. They agreed to pay $19 million to resolve allegations that they knowingly and improperly misrepresented the country of origin and failed to pay duties owed on flat-rolled steel manufactured in Europe and Asia. The settlement underscores the government’s continued and aggressive use of the FCA to pursue Trump administration policy priorities, including the active implementation of tariffs and customs duties, and reinforces the importance of accurate country-of-origin declarations when importing foreign materials and products.

Read on to learn more about the settlement and its implications for companies engaged in importing goods into the United States.

Tags: Trump Tariffs
Photo of Patrick Rowan Patrick Rowan

As a member of the firm’s nationally recognized Government Investigations and White Collar Litigation department, Pat’s practice focuses on criminal and civil enforcement proceedings and internal investigations. He has substantial experience in international and national security matters. He has represented individuals and companies…

As a member of the firm’s nationally recognized Government Investigations and White Collar Litigation department, Pat’s practice focuses on criminal and civil enforcement proceedings and internal investigations. He has substantial experience in international and national security matters. He has represented individuals and companies in a variety of federal criminal investigations, as well as civil enforcement actions. He also advises corporate clients on compliance with the Foreign Corrupt Practices Act, OFAC sanctions, the ITAR, the EAR and CFIUS regulations. He has conducted numerous internal investigations for large companies with significant international operations.

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Photo of Alex J. Brackett Alex J. Brackett

Alex is a member of the Government Investigations and White Collar Litigation department, and co-head of McGuireWoods’ Strategic Risk and Compliance team. His practice focuses primarily on advising and supporting corporate and individual clients in the areas of white collar criminal defense and…

Alex is a member of the Government Investigations and White Collar Litigation department, and co-head of McGuireWoods’ Strategic Risk and Compliance team. His practice focuses primarily on advising and supporting corporate and individual clients in the areas of white collar criminal defense and internal investigations.

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Photo of John Padgett John Padgett

John is the former office managing partner of the firm’s Norfolk office and the founding leader of the Transportation Industry Team. He has extensive experience in providing a wide range of services to corporate and transportation clients.

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Photo of Edwin O. Childs Edwin O. Childs

As a leader of the firm’s Defense, National Security and Government Contracting industry team, Ned Childs is a government contract and investigations and enforcement attorney who represents companies across a wide range of sectors, including the defense, services, technology, and aerospace industries. His…

As a leader of the firm’s Defense, National Security and Government Contracting industry team, Ned Childs is a government contract and investigations and enforcement attorney who represents companies across a wide range of sectors, including the defense, services, technology, and aerospace industries. His practice, spanning more than a decade in Washington, encompasses a broad array of legal services, including government contract investigations, disclosures, and regulatory enforcement actions; bid protests and government contract disputes; government contract counseling; export licensing and enforcement; prime contractor-subcontractor disputes; corporate ownership and acquisition issues; and election law investigations and enforcement matters.

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Photo of Brett Barnett Brett Barnett

Brett is the co-leader of McGuireWoods’ False Claims Act Investigations & Litigation Practice Group. He focuses his practice on representing clients in high-stakes False Claims Act matters, healthcare fraud and abuse investigations, and complex commercial litigation across the country. Brett routinely leads internal…

Brett is the co-leader of McGuireWoods’ False Claims Act Investigations & Litigation Practice Group. He focuses his practice on representing clients in high-stakes False Claims Act matters, healthcare fraud and abuse investigations, and complex commercial litigation across the country. Brett routinely leads internal and government-facing investigations involving the U.S. Department of Justice and other federal and state agencies, and defends clients in civil FCA litigation, often involving parallel proceedings and regulatory scrutiny.

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Photo of Michael J. Podberesky Michael J. Podberesky

Michael Podberesky, a former federal prosecutor in the U.S. Department of Justice’s Civil Fraud Section, is a partner in the firm’s nationally recognized Government Investigations and White Collar Litigation Department and co-leader of the firm’s Healthcare Litigation and Enforcement Practice Group. Employing his…

Michael Podberesky, a former federal prosecutor in the U.S. Department of Justice’s Civil Fraud Section, is a partner in the firm’s nationally recognized Government Investigations and White Collar Litigation Department and co-leader of the firm’s Healthcare Litigation and Enforcement Practice Group. Employing his extensive experience with False Claims Act cases in the healthcare and defense sectors, Michael represents clients confronting high-stakes government investigations and litigation arising from allegations of healthcare and procurement fraud and also counsels clients regarding compliance issues.

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Photo of Abram J. Pafford Abram J. Pafford

Abe focuses his practice on protecting the rights and interests of companies and individuals who face disputes or conflicts with the federal government in its role as purchaser, prosecutor, and chief regulator. For more than twenty years, Abe has represented government contractors, participants…

Abe focuses his practice on protecting the rights and interests of companies and individuals who face disputes or conflicts with the federal government in its role as purchaser, prosecutor, and chief regulator. For more than twenty years, Abe has represented government contractors, participants in regulated industries, and companies and individuals targeted for federal investigation or prosecution, consistently achieving successful results for clients confronting difficult odds.

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Photo of Jack White Jack White

Jack is an accomplished trial lawyer and legal strategist who guides clients through complex challenges, including high-profile and sensitive litigation and government investigations. He focuses his practice on civil litigation, regulatory enforcement, and congressional investigations for clients in the defense, technology, federal contracting…

Jack is an accomplished trial lawyer and legal strategist who guides clients through complex challenges, including high-profile and sensitive litigation and government investigations. He focuses his practice on civil litigation, regulatory enforcement, and congressional investigations for clients in the defense, technology, federal contracting, higher and K-12 education, and other business sectors.

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Photo of Jason M. Vespoli Jason M. Vespoli

Jason focuses his practice on federal and state procurement, government technology, bid protests and government contract disputes, and regulatory compliance. He utilizes experience in state government, government technology, and complex procurement to solve problems in innovative and efficient ways.

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Photo of Sophie Marsh Sophie Marsh

Sophie focuses her practice on government contracts and government investigations matters.

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Photo of John Sullivan John Sullivan

John is an associate within the Government Investigations and White Collar Litigation group.

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  • Posted in:
    Administrative and Regulatory, Business and Commercial
  • Blog:
    The FCA Insider
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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