DOJ announces the National Fraud Enforcement Division's enforcement priorities

On August 13, 2026, Assistant Attorney General Colin M. McDonald of the United States Department of Justice (DOJ)’s National Fraud Enforcement Division (Fraud Division) released a memorandum outlining the department’s enforcement priorities, identifying five core areas of focus: public trust and financial integrity, healthcare, internal revenue, global trade and commerce, and corporate misconduct.

Following recent figures from the Government Accountability Office estimating that the federal government loses between $233 billion and $521 billion annually to fraud, the memorandum may signal an increase in federal fraud enforcement resources and coordination.

As discussed in a previous client alert, the DOJ’s creation of the Fraud Division earlier this year represents a significant organizational change to its fraud enforcement apparatus. For companies doing business with the federal government, operating in regulated industries, or navigating international supply chains, the memorandum may warrant careful attention.

In this alert, we summarize the key elements of the memorandum and discuss its implications for companies.

The National Fraud Enforcement Division

Although DOJ has historically prosecuted fraud across several components, the Fraud Division is a new DOJ component dedicated exclusively to fraud. Its stated mission is to prosecute fraud, “no matter its size or complexity,” with an emphasis on restoring public confidence in the government’s stewardship of taxpayer dollars. The Fraud Division describes itself as working “without fear or favor” to bring to justice individuals and corporations who defraud the public treasury or threaten the health, safety, security, and prosperity of US citizens.

DOJ is reorganizing substantial resources to support the Fraud Division, with headcount reaching approximately 500 attorneys and staff by late August 2026, and plans to continue growing over the next two years. The Fraud Division has already established a nationwide footprint, prosecuting cases representing billions of dollars in alleged fraud. Many of its resources originated in the Criminal Division’s Fraud Section, which was established in 1955 and served as a platform for DOJ’s nationwide fraud enforcement efforts. The Fraud Section was recently renamed the White Collar and Corporate Enforcement Section, and it continues handling criminal matters involving financial fraud, healthcare fraud, foreign corruption, and offenses impacting health and safety.

The Fraud Division’s organizational chart features multiple specialized litigating sections, including the Health Care Fraud, Public Trust and Financial Integrity, Tax, Global Trade & Commerce Enforcement, National Enforcement, Corporate Enforcement, and Asset Recovery sections. These sections are supported by a National Fraud Detection Center, appellate counsel, a dedicated privilege review team, automated litigation support, and a cross-disciplinary team of data scientists.

On August 18, 2026, DOJ published the formal rulemaking establishing the Fraud Division’s authority at 28 CFR 0.70. Notably, paragraph (k) authorizes the Fraud Division to “investigate criminal conduct in pursuit of cases” under its enumerated areas of responsibility and to “prosecute any criminal charges identified as a result of such investigations whether or not such prosecutions fit within the descriptions” of its stated authority. Furthermore, paragraph (l) allows the Attorney General or Deputy Attorney General to assign the Fraud Division other duties and functions. In practical terms, these provisions grant the Fraud Division broad prosecutorial reach, as it may prosecute any criminal conduct uncovered during the course of a fraud investigation.

Five core areas of focus

The Fraud Division’s organizational structure is matched by a series of substantive enforcement priorities, each focused on a specific form of fraud that DOJ views as posing significant risks to taxpayers, government programs, and economic security.

1. Public trust and financial integrity

The Fraud Division’s first priority centers on protecting taxpayer dollars and the integrity of government programs. This encompasses government procurement fraud, including defective pricing, bid rigging, self-dealing, bribery, product substitution, and billing fraud, in addition to fraud against federal benefit and grant programs, such as student loans, childcare, veterans’ benefits, disaster relief, and small business programs. The memorandum states that, “for too long, lax oversight allowed bad actors—often foreign nationals—to exploit these programs,” declaring that “[t]hat era has come to an end.” The Fraud Division will also prosecute those who cheat markets and compromise the financial integrity of US consumers.

2. Healthcare

Healthcare fraud enforcement is a significant priority. The memorandum notes that national healthcare expenditures are expected to grow from more than $3 trillion to more than $7 trillion annually, with three to ten percent lost to fraud. The Fraud Division announced its focus on schemes related to telemedicine fraud, Medicare and Medicaid fraud, controlled substance diversion, home health and hospice schemes, and deceptive marketing of unsafe products. The Fraud Division intends to “supercharge” the Health Care Fraud Strike Force model with greater resources, data analytics, and technology to pursue defendants orchestrating schemes involving hundreds of millions in losses and complex money laundering.

3. Internal revenue

The memorandum describes criminal tax enforcement as “an integral part of the Fraud Division’s mandate to protect the public fisc.” The Fraud Division will prioritize unethical return preparers, those who conceal income or falsify returns, and abusive promoters selling illegal tax schemes. The memorandum emphasizes intra-division and interagency coordination to create “an all-tools response to fraud enforcement,” deploying the full array of criminal tax tools paired with data analytics, financial forensics, and nationwide coordination. The Fraud Division will apparently handle matters that previously would have been the responsibility of DOJ’s Tax Division, which it dissolved in December 2025.

4. Global trade and commerce

Through a cross-agency Trade Fraud Task Force, prosecutors will enforce against systemic, high-impact non-compliance threatening economic and national security, including illicit transshipment schemes, country-of-origin fraud, the undervaluation of imported goods to evade duties, sanctions evasion, and foreign forced-labor schemes. The memorandum frames this priority element as protecting domestic market integrity and border security, noting that trade fraud undermines US industry, deprives the government of vital revenue, and funds foreign adversaries. The prioritization of trade enforcement is consistent with actions DOJ has already taken: On July 14, 2026, DOJ formally stood up the Global Trade & Commerce Enforcement Section and, together with the US Department of Homeland Security, issued the first joint Trade Fraud Enforcement Guide. Meanwhile, the Trade Fraud Task Force surpassed $1 billion in civil and criminal recoveries, penalties, and forfeitures in less than a year.

5. Corporate misconduct

According to the memorandum, the Fraud Division will hold accountable organizations that break the law, while rewarding those that voluntarily self-disclose, cooperate, and remediate. The memorandum notes that the Fraud Division has a “strong pipeline of ongoing corporate matters” and that prosecutors will work closely with its Corporate Enforcement Section. In addition, the memorandum discusses fair and consistent application of DOJ’s policies concerning the prosecution of organizations, including appropriate incentives for voluntary self-disclosure and cooperation.

Takeaways for companies

In light of the Fraud Division’s announced enforcement priorities, organizations are encouraged to consider the below steps.

• Prepare for heightened enforcement activity across multiple sectors. The Fraud Division’s rapid build-out, combined with its emphasis on data analytics, new technology, and cross-agency coordination, suggests that companies in government contracting, healthcare, financial services, tax-sensitive industries, and international trade could face increased scrutiny and investigations.


• Reassess compliance programs against stated priorities. The memorandum’s specificity regarding prioritized fraud schemes, from defective pricing and bid rigging in procurement to transshipment schemes in global trade, provides a detailed enforcement roadmap. Notably, the Fraud Division has expressly committed to using advanced data-driven investigative techniques and developing systems that enable more efficient identification and investigation of fraud, reflecting DOJ’s broader shift toward analytics-driven enforcement. Companies are encouraged to evaluate whether existing compliance programs adequately address the risk areas identified by the Fraud Division and whether monitoring publicly available data is warranted.


• Leverage voluntary self-disclosure and cooperation. The Fraud Division’s explicit statement that it will reward companies that voluntarily self-disclose, cooperate, and remediate reinforces DOJ’s broader Corporate Enforcement Policy. Companies that identify potential issues are encouraged to evaluate the benefits of proactive disclosure, which could lead to favorable resolution terms, reduced penalties, and, in some cases, declinations from prosecution.

Looking ahead

The Fraud Division’s enforcement priorities memorandum signals a structural shift in how DOJ will investigate and prosecute fraud across sectors. The combination of substantial advanced technology and clearly articulated priorities suggests that companies could face an increasingly active enforcement environment.

DLA Piper will continue to monitor the Fraud Division’s activities and related developments. Additional updates will be provided as DOJ’s enforcement priorities take shape.

For more information, please contact the authors.