A new memo from Assistant Attorney General Colin McDonald outlines the corporate enforcement policies of the Department of Justice’s National Fraud Enforcement Division, and importantly acknowledges the critical role of whistleblowers in the ongoing effort to combat fraud. Recognizing that DOJ has “historically relied on honest brokers willing to come forward and share information with the government,” the memo concludes that the fraud division’s policies “must encourage and protect the disclosure of information by whistleblowers.”
The National Fraud Enforcement Division was created in early 2026 to coordinate between agencies administering taxpayer-funded programs and partner with federal, state, and local law enforcement to fight government fraud. The latest memo directs prosecutors to follow DOJ policies governing corporate enforcement, to coordinate with the Corporate Enforcement Section of DOJ, and to follow a list of priorities for enforcement and factors to consider in determining whether to bring charges and negotiate agreements. Phillips & Cohen previously wrote about DOJ’s National Fraud Division.
The recent memo also directs the Fraud Division “to design and implement policies and programs that appropriately incentivize whistleblowers” to provide DOJ with credible information about fraud and to make those policies and programs transparent to the public. The memo makes clear that these policies should extend to whistleblowers who participated in the criminal conduct.
The directive to encourage and incentivize whistleblowers is sound, as they play a critical role in combating fraud. Whistleblowers with insider knowledge of wrongdoing have proven to be the most effective way to uncover fraud, returning billions to the public fisc each year. According to DOJ, in fiscal year 2025 the False Claims Act’s settlements and judgments exceeded $6.8 billion, and qui tam lawsuits filed under the False Claims Act by whistleblowers led to over $5.3 billion of those settlements and judgments. Whistleblowers can earn a financial award for reporting fraud schemes, usually between 15 and 30 percent of monies collected.
Phillips & Cohen is the most successful law firm representing whistleblowers, recovering more than $13 billion in civil settlements and criminal fines. The firm represents whistleblowers in qui tam lawsuits and whistleblower claims under the SEC, CFTC, and IRS whistleblower programs. If you know of fraud against the government or financial markets and would like to speak to an experienced whistleblower attorney, contact Phillips & Cohen for a confidential review of your case.