DOJ Announces New Corporate Fraud Priorities and Whistleblower Incentive Programs

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 programs; whether the conduct affects multiple taxpayer-funded programs; geographic scope (three federal districts or more); whether the conduct results in harm to 25 or more victims or $25 million or more in loss; whether the conduct funnels money to foreign adversaries; and whether the fraud involved immigration offenses. These factors, however, are nonexhaustive; prosecutorial discretion permits consideration of any relevant factor consistent with the Justice Manual.

The October Memo also warns that DOJ is proactively generating leads and opening investigations using new data-analytics tools, and it encourages whistleblowers—even those who share culpability—to come forward. To that end, it directs NFED leadership to design and implement new policies to incentivize whistleblowers.

Finally, the October Memo clarifies that NFED's Corporate Enforcement Section will have primary responsibility for monitoring compliance with criminal resolutions, including evaluating corporate defendants' compliance programs and overseeing their reporting under any disclosure obligations. In so doing, DOJ hopes to free up resources in its prosecuting sections to pursue new cases. This centralization of compliance monitoring authority may herald increased scrutiny of corporate adherence with criminal resolutions across all priority industries.

Companies operating in the NFED's priority areas may consider reviewing their compliance programs against the memo's "great weight" factors, particularly management oversight and transparency. Companies should also consider assessing their internal data—such as claims, pricing, import, and grant or loan data—for practices likely to attract scrutiny. Additionally, companies that are subject to ongoing compliance and reporting requirements from past prosecutions may take this opportunity to review their current obligations and be prepared to engage with new DOJ counsel.