Pirro Launches New Division to Pursue Federal Fraud

U.S. Attorney Jeanine Pirro is creating a dedicated fraud and asset recovery operation in Washington, bringing prosecutors and financial investigators together to pursue fraudulent claims and collect money owed to the federal government.

The U.S. Attorney’s Office for the District of Columbia announced the Fraud and Asset Recovery Division on Wednesday. The reorganization gives affirmative civil enforcement a separate home within the office, reducing competition for resources with attorneys responsible for defending federal agencies against lawsuits.

Pirro presented the move as part of President Donald Trump’s commitment to protecting public funds.

“President Trump has prioritized the elimination of fraud, waste, and abuse involving federal agencies and programs,” Pirro said.

“We are sending a clear message: those who cheat the federal government will face decisive, coordinated action.”

The new division will place prosecutors, investigators, auditors and support staff together to investigate suspected fraud, pursue civil recoveries and enforce financial obligations.

Dan Schiffer will serve as division chief. Sean M. Tepe will be deputy chief for operations.

A central tool will be the False Claims Act, which allows the federal government to pursue businesses and individuals accused of knowingly submitting fraudulent claims for payment. Those cases can involve healthcare reimbursements, government contracts, grants, procurement and other programs distributing federal dollars.

The law gives prosecutors substantial financial remedies. Successful cases can result in recovery of up to three times the government’s damages, along with inflation-adjusted civil penalties.

Congress originally enacted the statute in 1863 after allegations that contractors were cheating the Union Army during the Civil War. Its modern application reaches across the federal government’s extensive network of contractors, providers and funding recipients.

The law also permits whistleblowers with information about suspected fraud to bring lawsuits on the government’s behalf. These private plaintiffs, known as relators, may receive a share of the recovery when their cases succeed.

Such cases have become a major source of federal recoveries.

The Justice Department reported more than $6.8 billion in False Claims Act settlements and judgments for fiscal 2025, describing it as the highest annual total in the law’s history.

Whistleblowers filed a record 1,297 qui tam lawsuits during that period. The government separately opened 401 investigations on its own.

Since Congress strengthened the statute in 1986, settlements and judgments under the False Claims Act have surpassed $85 billion.

Pirro’s office already participates in substantial civil enforcement work. According to the office, its prosecutors have recovered billions of dollars through False Claims Act litigation and other civil cases involving allegations such as improper billing on government contracts and violations involving pharmaceutical and medical-device companies.

Until now, much of that work was handled by the Affirmative Civil Enforcement unit inside the broader Civil Division.

The Civil Division also defends federal agencies and officials when they are sued. The office says that growing defensive workload increasingly competed with the personnel and resources required to pursue affirmative fraud investigations.

The new division is intended to give recovery efforts a clearer organizational focus and dedicated leadership.

Whether that restructuring will be accompanied by additional resources remains unclear. The Justice Department has not announced the division’s eventual staffing level, any new funding or the investigations that will become its first major priorities.

Its responsibilities will extend beyond proving that fraudulent claims were submitted.

The office’s Financial Litigation Unit will join the division, bringing responsibility for collecting criminal fines, restitution, special assessments, civil judgments, settlements and other debts owed to the federal government.

Those duties also include certain agency debts, including qualifying student-loan obligations involving the Department of Education.

Combining litigation and collection functions places greater attention on the practical result for taxpayers: obtaining a judgment is only part of the process; recovering the money is another.

Civil asset forfeiture will also fall within the division’s responsibilities, along with enforcement of subpoenas issued by federal agencies and inspectors general.

The Washington initiative is separate from the Justice Department’s National Fraud Enforcement Division, which Acting Attorney General Todd Blanche established in April.

That nationwide operation coordinates criminal and civil fraud enforcement across federal jurisdictions. It supports Trump’s Task Force to Eliminate Fraud, chaired by Vice President JD Vance, and brings prosecutors, investigators, benefit agencies and government data systems together to identify suspected schemes.

Pirro’s reorganization applies that broader emphasis on fraud enforcement within the District of Columbia’s federal prosecutor’s office. Its effectiveness will ultimately be measured by the cases it proves and the public money it recovers.