DOJ Memo Prioritizes Healthcare Fraud in Corporate Investigations

An Oct. 1 memo from Assistant Attorney General Colin McDonald directs the Justice Department's National Fraud Enforcement Division to prioritize healthcare fraud, including controlled substance distribution and FDCA violations, as one of four focus areas for corporate investigations. Prosecutors must weigh 10 factors when deciding on charges or plea agreements, including corporate management's knowledge of schemes, efforts to conceal fraud from government auditors, and conduct causing substantial harm to taxpayer-funded programs. The division, formed in April from the former Criminal Division Health Care Fraud Unit, is using data analytics to accelerate new investigations and will develop whistleblower incentive programs, including for participants in misconduct. The policy also directs prosecutors to follow existing self-disclosure and cooperation credit guidance while avoiding overly broad enforcement.

Finance · Pharmacy