Signed on October 1 by Colin M. McDonald, Assistant Attorney General for the National Fraud Enforcement Division, the memorandum sets out priorities for investigating corporate misconduct, factors to be considered in corporate charging decisions, and measures to incentivize voluntary disclosure of fraud.
Priority enforcement areas include fraud schemes involving the healthcare industry; procurement, government contracts, and other government functions; significant evasion of internal or external revenue; and tariff evasion, the importation of goods or services, and forced labor.
When determining whether to bring charges against companies and negotiating plea or other agreements, prosecutors are instructed to place particular weight on several factors, including:
- knowledge of or involvement in a fraudulent scheme by corporate management;
- efforts to conceal fraud from government agencies or auditors, or otherwise impede or obstruct government functions or oversight;
- conduct furthering a fraudulent scheme for three years or more;
- conduct causing substantial financial hardship to taxpayer-funded programs or government functions;
- the scope of the misconduct, including its impact on multiple taxpayer-funded programs or government functions, or three or more federal districts;
- the extent of financial harm and the number of victims, particularly cases involving financial harm to 25 or more individuals or losses of at least $25 million.
- The list is not exhaustive, and prosecutors may consider other relevant factors in accordance with existing DOJ policies.
The memorandum also places particular emphasis on corporate compliance and voluntary self-disclosure. It requires prosecutors to apply the DOJ's existing Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). Under this policy, companies' willingness to voluntarily disclose misconduct, cooperate with investigations, and undertake appropriate remediation is taken into account when determining appropriate enforcement outcomes and resolutions.
The Corporate Enforcement Section is assigned a central role in coordinating corporate enforcement matters. It will support corporate investigations and oversee companies' compliance with the terms of corporate criminal resolutions. In particular, the Section will lead efforts to evaluate companies' implementation or enhancement of compliance programs, ensure adequate reporting under disclosure obligations, and address other issues arising during the term of an agreement.
In addition, the leadership of the National Fraud Enforcement Division has been directed to develop and implement additional policies and programs to incentivize whistleblowers to report credible information about fraud, including individuals who participated in criminal conduct. These mechanisms are intended to help uncover fraudulent schemes, strengthen investigations, prevent financial losses, and enable the DOJ to respond effectively to emerging fraud threats.
