Since the April creation of the Department of Justice (DOJ) National Fraud Enforcement Division, the DOJ has issued memos operationalizing that Division, including setting forth its priorities and providing guidance on criminal enforcement.
An October 1 memo (entitled Directive 26-12) from Colin McDonald, the Assistant Attorney General in charge of the National Fraud Enforcement Division, which Reed Smith has previously briefed, outlines the Division's priorities to prosecute fraud related to health care, government contracts, tax evasion, and tariff evasion, and factors to weigh in determining outcomes for corporations involved in government investigations.
But how do the DOJ’s reorganization and recent directives affect how civil False Claims Act (FCA) cases and other criminal corporate fraud cases are prosecuted and resolved, including for health care companies that are in the crosshairs of scrutiny? Although civil FCA cases have been and will continue to be handled by the Civil Division of the DOJ, we may see changes to parallel criminal and civil investigations related to health care fraud.
The Responsibility for Investigating Fraud Matters
Before the DOJ created the National Fraud Enforcement Division, the Criminal Division’s Fraud Section—now renamed the White Collar and Corporate Enforcement Section—prosecuted criminal fraud matters, while the Civil Division’s Commercial Litigation Branch, Fraud Section handled civil FCA matters. In forming the new Division, which...
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