DOJ Fraud Division's First Corporate Enforcement Directive Sets Priorities
Directive 26-12 (Oct. 1, 2026) prioritizes health care, public trust, revenue evasion and tariff fraud, requires reporting of corporate investigations to a new Corporate Enforcement Section, and gives "great weight" to ten charging factors.
On October 1, 2026, Assistant Attorney General Colin M. McDonald issued Directive 26-12, the National Fraud Enforcement Division's first statement of corporate enforcement principles, priorities and resolution factors. Prosecutors are directed to prioritize corporate investigations in four areas: health care fraud (including controlled substances and FDCA violations), public trust and procurement/government contract fraud, significant evasion of internal or external revenue, and tariff evasion, importation and forced labor — categories that track the Division's four announced sections.
Ten non-exhaustive factors must receive "great weight," including management knowledge or involvement (which McDonald publicly called the "top line" factor), concealment, conduct lasting three years or more, effects across three or more federal districts, $25 million-plus or 25-victim harm, dollar flows to foreign adversaries, and immigration offenses. A new Corporate Enforcement Section must be notified of corporate investigations, takes primary responsibility for monitoring resolution compliance, and coordinates resourcing. The Directive also directs policies incentivizing whistleblowers, including culpable participants, and underscores that CEP self-disclosure credit is at risk as the Division's data analytics generate leads independently.
Counsel should map client exposure against the ten factors, test detection controls, and weigh early self-reporting before internal investigations conclude.