DOJ Fraud Division Announces New Enforcement Priorities

The DOJ’s National Fraud Enforcement Division issued a memorandum outlining a more aggressive enforcement strategy to target corporate fraud which impacts government programs.

In addition to areas like health care, government procurement, and the collection of taxes and revenue, the memo’s framework extends more broadly to most types of taxpayer-funded programs and government functions.  This could include, for example, the FHA, VA, and USDA loan programs.  The memo provides that all corporate fraud matters will be routed through a new Corporate Enforcement Section within the fraud division.  The Corporate Enforcement Section will monitor fraud investigations and litigation handled by other units within DOJ and will oversee companies’ compliance with plea agreements and other negotiated resolutions.

Under the new guidance, prosecutors are directed to place great weight on various aggravating factors, such as knowledge or involvement by corporate management; concealment from auditors or regulators; schemes lasting more than three years; conduct that causes substantial financial hardship to taxpayer-funded programs or government functions, or which affects multiple programs; and conduct causing financial harm to 25 or more victims or $25 million or more in losses.  At the same time, the DOJ states that it will guard against overbroad enforcement and give credit where a company voluntarily discloses misconduct, cooperates with the government, and provides remediation, consistent with the DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy released earlier in 2026.

Finally, the DOJ announced an expanded, data-driven effort to identify potential fraud through its National Fraud Detection Center and a forthcoming push to incentivize and protect whistleblowers, including culpable insiders.