Story perspectives

Trump Launches National Fraud Division to Combat Federal Scams

2/10/2026

Center

Trump Launches Fraud Division

On January 8, 2026, U.S. President Donald Trump launched the National Fraud Enforcement Division within the Department of Justice.
The division, with Colin McDonald nominated as Assistant Attorney General, will tackle fraud affecting federal programs and coordinate interagency investigations.
Initial focus areas include fraud in Minnesota and issues in Ohio and California.
Recent actions include a $120 million New York Medicare and Medicaid kickback scheme, signaling heightened scrutiny.

Right

Fraud Fighters Unite

U.S. Attorney Leah Foley announced a new fraud coordinator for Massachusetts due to increasing SNAP fraud cases, including a $1 million bust and a $7 million scheme involving Haitian nationals.
The Small Business Administration (SBA) suspended over 111,000 borrowers tied to $8.6 billion in suspected COVID-related fraud.
SBA Administrator Kelly Loeffler criticized California's welfare policies, while Attorney General Rob Bonta stated California recovered nearly $2.7 billion in fraud cases over the past decade.
Tensions are rising between state and federal officials as investigations continue.

History

Historical Context

The Comprehensive Drug Abuse Prevention and Control Act of 1970 established a federal framework for drug enforcement, leading to the creation of the Drug Enforcement Administration (DEA). In response to rising fraud, particularly highlighted by the $120 million Medicare scheme, the National Fraud Enforcement Division was recently formed, reflecting a growing urgency to protect public trust and government resources.

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Trump Launches Fraud Division

On January 8, 2026, U.S. President Donald Trump launched the National Fraud Enforcement Division within the Department of Justice.
The division, with Colin McDonald nominated as Assistant Attorney General, will tackle fraud affecting federal programs and coordinate interagency investigations.
Initial focus areas include fraud in Minnesota and issues in Ohio and California.
Recent actions include a $120 million New York Medicare and Medicaid kickback scheme, signaling heightened scrutiny.

1 / 3