The recently developed Fraud Division at the Department of Justice has announced its key priorities, as it kick-started in April as part of a broader fraud crackdown effort by the Trump administration.
A memo sent out to the division’s employees on Thursday explained that the stated priorities are “Public Trust and Financial Integrity,” “Internal Revenue,” “Health Care,” “Global Trade and Commerce” and “Corporate Misconduct.”
“The Government Accountability Office recently estimated that the federal government loses between $233 billion to $521 billion annually to fraud—with other models showing even higher annual losses,” Colin McDonald, Assistant Attorney General, wrote in the memo.
“These shocking figures alone are worth our full and complete attention. And there is so much more at stake than simply dollars and cents: unabated fraud inflicts just as much damage to the hearts and souls of Americans as it does to their wallets,” McDonald continued.
Medicaid fraud cases in Minnesota and other states garnered national attention in recent months, and the National Health Care Fraud Takedown resulted in roughly $6.5 billion caught in alleged fraud; and 455 people faced charges as a result, according to the DOJ in June.
On healthcare fraud, the memo specifically states that the DOJ will “prosecute defendants who orchestrate schemes that result in the loss of hundreds of millions of dollars, the distribution of thousands of controlled substance pills, and complex money laundering, tax, and other associated financial crimes relating to health care.”
The memo highlights concerns about hospice scams, as well as organizations and people that “deceptively market unsafe products and services.”
On the Internal Revenue priority, the memo explains that fraudsters will often break tax laws while conducting a scheme.
“The federal government trusts Americans to voluntarily comply with their tax obligations. Yet, unscrupulous actors abuse this trust. For example, unethical return preparers include false claims on individuals’ tax returns and often charge higher fees to do so,” the memo states.
“Others conceal their income or otherwise falsify information on their returns. Abusive promoters line their pockets while selling their unsuspecting clients on illegal tax schemes,” it continues.
At a meeting of Vice President JD Vance’s anti-fraud task force earlier this month, administration officials proposed stronger mandatory minimums for individuals convicted of fraud and more vetting before welfare and Medicaid benefits are doled out.
“This effort will fundamentally always have a limitation unless our colleagues in the House and the Senate are working with us,” the vice president said at the time.
“We need our colleagues in Congress to really codify some of this stuff,” he added.
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