US Department of Justice fraud enforcement initiatives

The U.S. Department of Justice (DOJ) has initiated a major effort to combat fraud through the establishment of the National Fraud Enforcement Division. Led by Assistant Attorney General Colin M. McDonald, the division focuses on investigating healthcare, government, tax, and trade fraud. To address significant federal losses, the DOJ is utilizing data analytics and artificial intelligence to process large datasets, such as medical records and billing claims.

Following the division's launch, the DOJ issued Directive 26-12 to refine corporate fraud enforcement and False Claims Act (FCA) litigation. This directive establishes ten factors for prosecutors to consider when deciding whether to charge a company and creates a central Corporate Enforcement Section. The new policy seeks to balance aggressive prosecution of misconduct with restraint for legitimate businesses, specifically rewarding voluntary disclosure and remediation.

Furthermore, revisions to the Justice Manual regarding FCA enforcement aim to limit the ability of sub-regulatory guidance to impose legal obligations and encourage the dismissal of meritless qui tam actions when the government declines to intervene.