DOJ Fraud Division Directive Centralizes Corporate Enforcement, Sets Charging Factors
Directive 26-12 puts a new DOJ Fraud Division Corporate Enforcement Section in charge of corporate cases from intake to resolution, prioritizes health care, defense contracting, tax and tariff fraud, and export controls.
On October 1, 2026, DOJ's new National Fraud Enforcement Division issued Directive 26-12, giving its Corporate Enforcement Section lead over corporate investigations from intake through any corporate resolution or litigation, and requiring prosecutors to give "great weight" to ten factors in charging and resolution decisions. Those factors include management knowledge of or involvement in a scheme, concealment from auditors or government agencies, conduct lasting three years or more, harm to 25 or more victims or $25 million or more in loss, and conduct touching three or more federal districts. Priority sectors are health care (controlled substances, FDCA violations), government and defense contracting, significant tax and tariff evasion, and import-export controls and forced labor. The directive also tasks leadership with designing whistleblower incentive programs that will extend to individuals who participated in the misconduct itself — a material change to the internal-reporting risk calculus.
Counsel should expect centralization to shift who evaluates compliance at existing corporate resolutions. Immediate steps: map exposure against the ten factors, stand up escalation and document-preservation protocols, pressure-test speak-up channels against insider-driven reporting, and settle disclosure ownership and speed before a matter surfaces. Watch for the promised whistleblower program details and further implementation guidance.