The US Department of Justice (DOJ or Department) published a final rule on August 18, 2026 (Final Rule) formalizing the National Fraud Enforcement Division (Fraud Division) established in April 2026. Companies in the health care, government contracting, trade, and tax sectors should take note and scrutinize their compliance programs accordingly. The Fraud Division has grown rapidly, already wielding data-driven investigative tools and interagency partnerships, and has signaled that it will reward companies that self-disclose and cooperate while aggressively pursuing those that do not.
The Final Rule
Under the Final Rule, the Fraud Division has jurisdiction over the following broad range of fraud-related matters. Companies should understand the scope of the Fraud Division’s reach:
- Criminal fraud. Criminal fraud matters (other than antitrust cases involving conspiracy to defraud the…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.