“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.”
At the center of the new division’s mission will be enforcement of the False Claims Act, a powerful federal law that allows the government to pursue individuals and companies accused of knowingly submitting fraudulent claims for taxpayer-funded money.
The law reaches across a broad range of federal spending. Potential cases can involve health care programs, government contracts, grants, procurement operations and other areas where federal funds are distributed.
The False Claims Act itself has deep roots in American history. Congress originally enacted the law in 1863 during the Civil War after allegations surfaced that contractors were cheating the Union Army.
More than a century and a half later, the law remains one of the federal government’s primary weapons against alleged financial misconduct.
Under the modern statute, the government can generally seek up to three times the amount of its damages, in addition to inflation-adjusted civil penalties.
The law also provides an important role for whistleblowers. Private individuals who possess information about alleged fraud can file lawsuits on behalf of the federal government.
Those whistleblowers, known as relators, may receive a portion of the money ultimately recovered if their cases succeed.
The scale of False Claims Act enforcement has increased dramatically in recent years.
The Justice Department reported more than $6.8 billion in False Claims Act settlements and judgments during fiscal year 2025, marking the largest annual recovery in the history of the statute.
Whistleblower activity also reached record levels during that period. A total of 1,297 qui tam lawsuits were filed, while the government independently opened another 401 investigations.
Since Congress significantly strengthened the False Claims Act in 1986, settlements and judgments under the law have surpassed $85 billion.
The District of Columbia U.S. Attorney’s Office is particularly positioned to handle major federal civil enforcement cases because it operates in the nation’s capital and regularly deals with litigation involving federal agencies and programs.
According to the office, its prosecutors have already recovered billions of dollars through False Claims Act actions and other civil enforcement matters.
Those cases have included allegations involving improper government-contract billing as well as alleged violations involving pharmaceutical companies and medical-device manufacturers.
Pirro’s reorganization is intended to give this type of affirmative enforcement work a more dedicated home.
Previously, much of the office’s efforts to pursue fraud were handled through its Affirmative Civil Enforcement unit within the larger Civil Division.
That arrangement created an unusual resource challenge because the same Civil Division is also responsible for defending federal agencies and officials when they are sued.
The office said those competing responsibilities increasingly placed pressure on the resources available for pursuing affirmative fraud cases.
Under the new structure, prosecutors, investigators, auditors and support personnel involved in pursuing government fraud will work within a dedicated division focused specifically on enforcement and recovery.
Dan Schiffer will serve as chief of the new division, while Sean M. Tepe will take on the role of deputy chief for operations.
The Justice Department has not yet disclosed how large the division will ultimately become. Officials have also not announced whether the unit will receive additional funding or identified the first major investigations that will be targeted under the new structure.
Importantly, the division’s responsibilities will extend beyond False Claims Act cases.
The office’s existing Financial Litigation Unit will be incorporated into the new operation. That unit is responsible for collecting criminal fines, restitution, special assessments, civil judgments, settlements and other debts owed to the federal government.
Its work can also involve certain debts owed to federal agencies, including qualifying student-loan obligations associated with the Department of Education.
The new division will additionally oversee civil asset forfeiture matters and enforcement of subpoenas issued by federal agencies and inspectors general.
That broader mandate gives the operation a role not only in identifying alleged fraud, but also in pursuing and recovering money and assets connected to federal enforcement actions.
Pirro’s initiative is separate from another Trump administration effort aimed at combating fraud nationwide.
Earlier this year, Acting Attorney General Todd Blanche established the Justice Department’s National Fraud Enforcement Division to coordinate criminal and civil fraud enforcement across federal jurisdictions.
That national operation supports President Trump’s Task Force to Eliminate Fraud, chaired by Vice President JD Vance.
The nationwide effort brings together federal prosecutors, investigators, benefit agencies and government data systems in an attempt to identify suspected fraud schemes more effectively.
The creation of Pirro’s new division adds another layer to that campaign, this time concentrating enforcement resources inside the federal prosecutor’s office in Washington.
For taxpayers, the central issue is straightforward: federal money lost to fraud is money that cannot be used for legitimate government priorities.
By separating affirmative fraud enforcement from the office’s defensive civil litigation workload, Pirro’s office is betting that a specialized team can pursue cases more aggressively while improving the government’s ability to recover funds.
The full impact of the new division will depend on its staffing, resources and investigative priorities in the months ahead. But its creation sends a clear signal that recovering taxpayer money and pursuing alleged government fraud will remain a significant enforcement priority under the Trump administration.
