The Department of Justice (DOJ) just issued a new memorandum that may reshape how the government handles False Claims Act (FCA) cases involving federally funded benefits programs. Signed by Assistant Attorney General Brett A. Shumate on May 27, 2026, the memo directs DOJ attorneys to accelerate their review and prosecution of whistleblower suits alleging fraud in Medicaid, housing, food assistance, and other state-administered federal benefits programs.
The Policy
The memo flows from an executive order issued in March 2026 establishing a task force to eliminate fraud in federal benefits programs. At its core, it imposes strict new timelines on DOJ’s handling of benefits fraud qui tam cases and creates an explicit framework for fast-tracking whistleblower suits.
Here is how the new protocol works:
The 60/120-Day Initial Review
When a new benefits-fraud qui tam is filed, DOJ will aim…
CLICK HERE to read the FULL DOJ Puts Benefits Fraud Cases on a Fast Track – JD Supra article.
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.