The U.S. Attorney’s Office for the District of Columbia (USAO-DC) announced the establishment of a new Fraud and Asset Recovery Division on Wednesday, consolidating efforts to combat fraud, waste, and abuse within federal agencies and programs. U.S. Attorney Jeanine Pirro unveiled the specialized unit, emphasizing its alignment with the White House's priorities to protect taxpayer dollars and ensure the integrity of government operations.
"President Trump has prioritized the elimination of fraud, waste, and abuse involving federal agencies and programs. We are sending a clear message: those who cheat the federal government will face decisive, coordinated action." Jeanine Pirro, U.S. Attorney for the District of Columbia
The newly formed division brings together prosecutors, investigators, auditors, and financial specialists under one banner. Its comprehensive mission encompasses civil fraud cases, the collection of money owed to the federal government, and other affirmative civil enforcement actions. This strategic reorganization aims to enhance coordination and efficiency in pursuing those who defraud federal programs.
Central to the division's enforcement efforts is the False Claims Act, a statute originally enacted by Congress in 1863 to address contractor fraud against the Union Army during the Civil War. This powerful law authorizes the government to sue companies and individuals accused of knowingly submitting false claims for federal money. Its reach extends across various sectors, including healthcare programs, government contracts, grants, and procurement initiatives. Penalties under the current law can include up to triple the damages incurred by the government, along with civil penalties adjusted for inflation.
U.S. Attorney Jeanine Pirro linked the division's creation directly to the administration's agenda. "President Trump has prioritized the elimination of fraud, waste, and abuse involving federal agencies and programs," Pirro stated during the announcement. She added, "We are sending a clear message: those who cheat the federal government will face decisive, coordinated action."
The False Claims Act also includes a robust whistleblower provision, which allows private citizens with knowledge of alleged fraud to file lawsuits on the government's behalf. These plaintiffs, known as "relators," are entitled to a portion of any recovered funds if their cases succeed, providing a strong incentive for individuals to come forward with information. Data from the Department of Justice highlights the act's significant impact, with Fiscal Year 2025 yielding over $6.8 billion in settlements and judgments—the largest annual total in the law's history. That same year, whistleblowers contributed a record 1,297 qui tam lawsuits, while the government initiated another 401 investigations on its own.
The statute underwent a significant overhaul in 1986, leading to a dramatic increase in recoveries. Since that time, settlements and judgments secured through the False Claims Act have surpassed $85 billion nationwide. Given its unique location in the nation's capital, the USAO-DC handles a substantial portion of the country's major federal civil cases, including those involving improper government-contract billing and violations within pharmaceutical and medical-device industries.
Previously, much of this affirmative civil enforcement work was handled by the Affirmative Civil Enforcement (ACE) unit, which was part of the broader Civil Division within the USAO-DC. The Civil Division also bears the responsibility of defending federal agencies and officials against lawsuits. According to the U.S. Attorney’s Office, the increasing demands of defensive litigation began to draw heavily on the same resources needed for fraud investigations. The new Fraud and Asset Recovery Division will now assume much of the affirmative work, allowing for a more focused and integrated approach to these complex cases.
The division's responsibilities extend beyond False Claims Act cases. It now incorporates the Financial Litigation Unit, which is tasked with collecting criminal fines, restitution, special assessments, civil judgments, settlements, and other debts owed to the federal government. This includes certain student-loan obligations tied to the Department of Education. Additionally, civil asset forfeiture and the enforcement of subpoenas issued by federal agencies and inspectors general fall within the new division’s portfolio.
Leadership for the new division includes Dan Schiffer, who will serve as chief, and Sean M. Tepe, who will be the deputy chief for operations.
This local initiative in Washington D.C. complements broader national efforts to combat fraud. In April, Acting Attorney General Todd Blanche established the National Fraud Enforcement Division at the national level to coordinate criminal and civil fraud enforcement across all federal jurisdictions. This national division supports President Trump's Task Force to Eliminate Fraud, which is chaired by Vice President JD Vance, and aims to link prosecutors, investigators, benefit agencies, and government data systems to proactively identify suspected fraud schemes. While the Justice Department has not yet announced the new division's eventual headcount, any added funding, or its first major targets, its establishment signals a reinforced commitment to deterring and prosecuting those who attempt to defraud the federal government.
