On October 1, 2026, Assistant Attorney General ("AAG") Colin M. McDonald issued a memorandum (the "October Memo"), setting new corporate fraud enforcement priorities for the National Fraud Enforcement Division ("NFED") of the Department of Justice ("DOJ")—signaling aggressive enforcement across four priority areas, directing prosecutors to weigh 10 factors in making charging decisions, while also cautioning against enforcement that could "interfere with legitimate business operations."

OCTOBER 2026 Alert

The October Memo builds on AAG McDonald's August memorandum announcing the NFED's enforcement priorities for all matters, as highlighted in a September 2026 Jones Day Alert. Consistent with that memo, the October Memo sets four corporate fraud enforcement priority areas: health care fraud; fraud involving the public trust (e.g., government contract and procurement fraud); fraud involving significant tax evasion; and customs fraud. While promising to "zealously prosecute" corporate fraud, the memo also pledges to "firmly guard against overbroad corporate enforcement."

To strike this balance, prosecutors are directed to "place great weight" on 10 factors when making charging decisions: corporate management's knowledge or involvement in the fraud; whether the company attempted to conceal the fraud; the fraud's duration (three years or more); whether the conduct threatens national security or safety; whether the conduct causes substantial financial hardship to taxpayer-funded...

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