As part of the Executive Branch’s move to bolster fraud enforcement, on Tuesday, April 7, 2026, Acting Attorney General Todd Blanche issued a memorandum outlining the initial staffing of the newly created National Fraud Enforcement Division of the U.S. Department of Justice (“DOJ”). The Division is part of an initiative under President Donald J. Trump to fight fraud and complements the newly established Task Force to Eliminate Fraud, which was created by an Executive Order signed by the President on March 16.
Division Leadership and Structure
Recently confirmed Assistant Attorney General Colin McDonald will oversee the new Division, which as of April 7 has assumed operational control of three existing DOJ criminal units: the Criminal Division’s Tax Section; the Health Care Fraud Unit; and the Market, Government, and Consumer Fraud Unit. In addition, by April 28, each of the 93 U.S. Attorney’s Offices shall designate an experienced prosecutor to be detailed in-place at the division.
A Coordinated Approach to Fraud Enforcement
These actions are part of the U.S. government’s emphasis on heightened fraud enforcement, which has recently resulted in record recoveries by the U.S. government. The “comprehensive and coordinated approach” undertaken by the National Fraud Enforcement Division is intended to equip prosecutors and law enforcement with “state-of-the-art tools and resources needed” to “zealously investigate and prosecute those who steal of fraudulently misuse taxpayer dollars.” Underscoring the importance of the mission, in addition to the staffing movements detailed above, the Acting Attorney General has directed three other units within the DOJ’s Criminal Division to support, advise, and litigate on behalf of the Division.
Potential Expansion to Civil Enforcement
Although these initial moves do not include attorneys from the civil fraud section, Acting Attorney General Blanche has directed the Office of Legal Policy to recommend whether “non-criminal elements of the Department should be brought within the National Fraud Enforcement Division.” If such a move were to happen, DOJ would likely draw significantly from the unit that investigates civil False Claims Act cases. A move from civil enforcement to criminal prosecution could have far-reaching consequences for both individuals and corporations alike.
What This Means for You
Because this enhanced oversight has the potential for largescale civil and criminal consequences, Gunster clients must remain diligent. The criminal statutes available to the National Fraud Enforcement Division allow for the prosecution of all varieties of entities, not limited to a particular practice (such as healthcare). In addition, all government contractors and grantees are subject to civil penalties under the False Claims Act.
- Compliance is key. You may benefit from reviewing and strengthening your compliance policies in advance of the increased scrutiny by the U.S. government.
- You may learn your entity is under criminal investigation by several means, including being served with a grand jury subpoena or being asked to speak to federal law enforcement. You may benefit from identifying a response protocol in advance with a clear chain of command and ensuring your staff is trained accordingly.
- Gunster’s attorneys are skilled in responding to and resolving allegations of all varieties of fraud, including healthcare fraud; securities fraud; bank, wire, and mail fraud; email fraud and computer crimes; and tax and bankruptcy fraud.
Gunster’s attorneys remain available to answer your questions and advise and defend you accordingly.
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