Trump Administration Creates New DOJ Division to Target National Fraud

President Donald J. Trump announced plans to create a new Department of Justice division dedicated to national fraud enforcement, marking a significant expansion of federal efforts to investigate and prosecute fraud targeting government programs, federally funded benefits, and private citizens.

According to the administration, the new division will be responsible for enforcing federal criminal and civil laws against fraud affecting the federal government, businesses, nonprofits, and individuals across the country. The move comes amid what officials describe as a widespread and costly rise in organized and sophisticated fraud schemes.

The new division will be led by an Assistant Attorney General, who will oversee multi-district and multi-agency fraud investigations and provide guidance to U.S. attorneys’ offices nationwide on fraud-related matters. The role will also involve coordinating closely with federal agencies to identify, disrupt, and dismantle complex fraud networks that operate across state and jurisdictional lines.

Administration officials said the Assistant Attorney General will help set national enforcement priorities and propose legislative and regulatory changes aimed at closing systemic vulnerabilities that allow fraud to occur. The position will also advise the attorney general and deputy attorney general on major, high-impact fraud investigations and related policy issues.

The announcement highlighted ongoing federal investigations in Minnesota as an example of the type of cases the new division would oversee. The Department of Justice said it is currently conducting extensive investigations into alleged fraud involving several Minnesota programs, including Feeding Our Future, Housing Stabilization Services, and Early Intensive Developmental and Behavioral Intervention programs. Federal prosecutors are also handling cases tied to the Evergreen Recovery Medicaid fraud scheme.

According to the DOJ, 98 defendants have been charged in Minnesota-related fraud cases, with 64 convictions to date. The department said it has issued more than 1,750 subpoenas, executed over 130 search warrants, and conducted more than 1,000 witness interviews as part of those investigations. The DOJ also said it is doubling the number of attorneys assigned to Minnesota cases.

The administration said some of the locations featured in a viral video by commentator Nick Shirley are currently under active DOJ investigation, noting that one building highlighted in the video has already been linked to 13 fraud-related defendants.

Other federal agencies are also involved in coordinated enforcement efforts in Minnesota, according to the administration. The FBI is investigating dozens of health care and home care providers accused of fraud, deploying forensic accountants and data analytics teams, and examining potential links to elected officials and terrorist financing.

The Department of Homeland Security has sent approximately 2,000 agents to Minnesota, conducting targeted investigations at locations suspected of fraud. DHS said it has arrested more than 1,000 criminal illegal aliens in recent weeks and, through an earlier operation known as Operation Twin Shield, identified more than 1,300 fraud findings following site visits in Minneapolis and St. Paul. DHS officials said they are reviewing whether some cases warrant additional scrutiny related to refugee status or potential denaturalization.

The Department of Health and Human Services has frozen certain childcare payments nationwide and now requires documentation, such as receipts or photographic evidence, for childcare-related claims. HHS is also enforcing a federal law requiring immigration sponsors to repay Medicaid benefits used by sponsored immigrants and is investigating Minnesota Head Start programs over alleged fraud.

The Centers for Medicare and Medicaid Services have paused Medicaid payments to 14 Minnesota programs previously flagged for fraud, waste, and abuse, pending audits to determine which claims are legitimate. CMS has also notified Gov. Tim Walz that Minnesota’s Medicaid agency is operating in substantial noncompliance with federal requirements, according to the administration. HHS said it has cut off an additional $10 billion in funding to five Democratic-led states, including Minnesota.

Other actions cited by the administration include the Small Business Administration’s suspension of annual grant payments to Minnesota and the suspension of 6,900 borrowers in the state over roughly $400 million in suspected fraudulent activity. The Department of Housing and Urban Development has sent a team to Minnesota to investigate potential housing assistance fraud, while the Department of Labor is reviewing the state’s unemployment insurance program. The Department of Agriculture has ordered Minnesota to recertify SNAP recipients to ensure compliance with eligibility rules, a move state officials have challenged in court.

The administration said the new DOJ fraud enforcement division is intended to centralize and strengthen these efforts, signaling an aggressive federal posture against fraud across multiple programs and jurisdictions.

By: Politics406 staff