On October 1, 2026, Colin M. McDonald, Assistant Attorney General for the National Fraud Enforcement Division (“NFED” or the “Fraud Division”), issued a memorandum (the “Memo”) announcing key priorities of the Fraud Division’s Corporate Enforcement Section. The Memo follows significant changes to internal U.S. Department of Justice (“DOJ”) workflows for criminal fraud enforcement and the creation of a standalone NFED earlier in 2026.

Corporate misconduct, including health care, was among the five enforcement priorities previously announced for the NFED. The Memo outlines specific corporate fraud enforcement priorities, including close collaboration between the Corporate Enforcement Section and Fraud Division prosecutors to maximize efficiency.

On or around October 8, 2026, Fraud Division prosecutors will start reporting any ongoing corporate investigations, new investigations and major developments in existing cases to the Corporate Enforcement Section, which will have primary responsibility for evaluating a company’s compliance with the terms of criminal resolutions. Furthermore, to “free up resources in the prosecuting sections,” the Corporate Enforcement Section is designated to lead the Fraud Division’s evaluation of companies’ efforts to implement and enhance compliance programs.

While the Corporate Enforcement Section works to assess compliance with corporate resolutions, Fraud Division prosecutors have been instructed to prioritize four items when opening and conducting a corporate investigation. Of the four, the following two items are of particular relevance to health care organizations:

  1. Fraud schemes involving the health care industry, including health care fraud, distribution of controlled substances and violations of the Federal Food, Drug, and Cosmetic Act; and
  2. Fraud schemes involving the public trust or financial integrity of Americans and markets related to procurement, government contracts and other government functions.

In recommending outcomes in corporate matters, the Memo provides a non-exhaustive list of factors Fraud Division personnel and prosecutors should consider with “great weight,” consistent with the Corporate Enforcement and Voluntary Self-Disclosure Policy, including:

  1. Knowledge of or involvement in a fraud scheme by corporate management;
  2. Efforts to conceal fraud from government agencies or auditors or otherwise impede or obstruct a government function or oversight;
  3. Conduct that furthers the scheme lasting three years or more;
  4. Actions that threaten the safety or security of Americans, including military readiness;
  5. Conduct that causes substantial financial hardship to a taxpayer-funded program or government function;
  6. Conduct that affects multiple taxpayer-funded programs or government functions;
  7. Conduct that affects three federal districts or more;
  8. Conduct that results in financial harm to 25 or more victims or $25 million or more in loss;
  9. Conduct that involves the exfiltration of American dollars to support foreign adversaries; and
  10. Conduct that involves immigration offenses.

Importantly, the Memo also directs Fraud Division leadership to “design and implement policies and programs that appropriately incentivize whistleblowers to bring forward credible information pertaining to fraud and provide the public with transparency to the extent possible regarding those policies and programs.”

Practical Takeaways

Health care fraud remains among DOJ’s highest enforcement priorities. In light of the DOJ’s stated “all-tools” approach, organizations should review whether their compliance programs, reporting mechanisms, investigation protocols and remediation processes are appropriately designed and documented, and functioning effectively in practice.

For help designing a compliance program that is right for your organization or investigating a potential issue, please contact:

Special thanks to summer associate Wyatt Poer for his assistance with this article.

Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.

The post DOJ Memo Sharpens Its Corporate Fraud Focus: Insights from the National Fraud Enforcement Division on Its Corporate Enforcement Priorities appeared first on Law Firm | Health Care Law Firm in the USA | Hall Render.