The U.S. Department of Justice’s National Fraud Enforcement Division (NFED) has recently unveiled a comprehensive corporate enforcement policy, signaling a robust approach to combating fraud across various sectors. This initiative underscores the division’s commitment to safeguarding taxpayer dollars and maintaining the integrity of federal programs.
Established in April 2026, the NFED was tasked with investigating and prosecuting fraud against the American people. Assistant Attorney General Colin M. McDonald emphasized the division’s mission to protect the financial integrity of the United States and ensure justice for victims of fraud. ([justice.gov](https://www.justice.gov/fraud/about-national-fraud-enforcement-division?utm_source=openai))
On October 1, 2026, McDonald issued Directive 26-12, titled “Corporate Enforcement in the Fight Against Fraud.” This directive outlines the division’s enforcement priorities, focusing on:
- Healthcare fraud, including the distribution of controlled substances and violations of the Federal Food, Drug, and Cosmetic Act.
- Fraud affecting public trust or financial integrity related to procurement, government contracts, and other government functions.
- Significant evasion of internal or external revenue, such as tax evasion.
- Tariff evasion, importation of goods or services, or forced labor. ([skadden.com](https://www.skadden.com/insights/publications/2026/10/doj-fraud-division-rolls-out-new-corporate-enforcement-framework?utm_source=openai))
The directive also introduces ten factors that will influence prosecutorial decisions, including management involvement in misconduct, efforts to conceal conduct, duration of the scheme, and the financial harm caused to taxpayer-funded programs. ([debevoise.com](https://www.debevoise.com/insights/publications/2026/10/new-doj-directive-details-fraud-divisions-corporat?utm_source=openai))
To ensure consistent and effective prosecution of corporate crime, the NFED has established the Corporate Enforcement Section. This section will oversee corporate investigations, evaluate compliance programs, and monitor adherence to corporate resolutions. ([dlapiper.com](https://www.dlapiper.com/en/insights/publications/2026/10/what-the-dojs-new-fraud-enforcement-rules-mean-for-companies?utm_source=openai))
In line with the Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy, the directive encourages companies to voluntarily disclose misconduct, cooperate fully with investigations, and implement timely remediation measures. Such actions may result in favorable treatment, including potential declinations of prosecution. ([bakerbotts.com](https://www.bakerbotts.com/thought-leadership/publications/2026/october/dojs-new-fraud-division-puts-the-department-wide-cep-to-work?utm_source=openai))
Legal experts advise companies, particularly those in healthcare, government contracting, tax, and international trade sectors, to reassess their compliance programs and internal controls. Proactive measures can mitigate risks and demonstrate a commitment to ethical business practices. ([foley.com](https://www.foley.com/insights/publications/2026/10/dojs-new-corporate-fraud-enforcement-directive-reflects-continued-focus-on-trump-administrations-policy-priorities/?utm_source=openai))
The NFED’s new enforcement policy reflects a concerted effort to address fraud comprehensively, leveraging data analysis and inter-agency collaboration to protect federal programs and taxpayer interests.