On August 13, 2026, Assistant Attorney General Colin M. McDonald issued the first enforcement priorities memorandum for the Department of Justice’s (DOJ) new National Fraud Enforcement Division (Fraud Division).1 The memorandum establishes five priority enforcement areas for what the DOJ describes as the first division in Department history dedicated solely to detecting, investigating, and prosecuting fraud against the United States and its citizens. With an estimated $233 to $521 billion in annual federal fraud losses at stake, the Division represents a fundamental restructuring of how the federal government pursues fraud—and companies across industries should take notice.
This alert discusses:
- The DOJ’s announcement and the Fraud Division’s structure;
- The five stated enforcement priority areas;
- Why this matters for companies, government contractors, and regulated entities; and
- Key…
HOW TO SPOT A “RED FLAG” (THE BEHAVIORAL AUDIT)
Keep an eye out for these behavioral shifts in your staff:
Refusal to take leave: Afraid someone will find their “adjustments.”
Unexplained wealth: Buying luxury items that don’t match their known salary.
Working odd hours: Preferring to work alone late at night when no one is watching the system.
“Gatekeeper” behavior: Becoming overly defensive or angry when someone asks to see their records.