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Canadian Steel Firms and Owner Agree to $19 Million Settlement Over U.S. Duty-Evasion Claims

Resolving civil False Claims Act allegations without admitting liability, the settlement signals a push by U.S. authorities to more strictly enforce import duties on steel.

Two men drive past steel coils at the thyssenkrupp steel mill in Duisburg, Germany, Wednesday, Nov. 5, 2025. (AP Photo/Martin Meissner)

Overview

  • The Justice Department announced the $19 million settlement on Wednesday, May 20, 2026, resolving a qui tam suit filed by broker Shamsh Dhala and ending the government’s civil claims in the case.
  • DOJ says Farjess Inc., Royal Canadian Steel Inc., and part-owner Feroz Jessani allegedly misreported the country of origin of flat-rolled steel to U.S. Customs and Border Protection from May 2019 through January 2025.
  • The department alleges the companies declared steel as Canadian or American when they knew it was made in China, Indonesia, Italy, Turkey, or Vietnam, which the government says reduced duties owed on those imports.
  • As part of the settlement the relator Shamsh Dhala will receive about $3,610,000, and the Justice Department credited assistance from its Trade Fraud Task Force, CBP, and Homeland Security Investigations in the probe.
  • The settlement is civil only and expressly does not determine liability; the case highlights increased stakes after U.S. tariff changes in 2025 and may lead to tighter checks on import declarations and more enforcement actions.