The Fraud Section of the U.S. Department of Justice’s Criminal Division published its Year in Review last month, which showed an uptick for white collar enforcement in foreign corruption, financial and health care fraud. The enforcement affected a range of industries including telecommunications, defense contracting, software services, aviation, consulting, and financial services. Below we highlight the enforcement trends and identify our key takeaways for 2025.
Foreign Corruption
DOJ resolved eight criminal corporate cases and entered into one declination pursuant to its Corporate Enforcement and Voluntary Self-Disclosure Policy (“CEP”). The schemes involved bribery of officials in Latin America, Africa, the Middle East, and South and East Asia and over $1.1 billion on criminal fines and disgorgement. One of the matters included the first coordinated resolution with Ecuador and the third with South Africa. Four trials involving individuals charged with FCPA violations were held this year.
In late 2023, the DOJ created the Criminal Division’s International Corporate Anti-Bribery (“ICAB”) initiative aimed to grow the Department’s foreign law enforcement partnerships. Several prosecutors serve as regional ICAB representatives and DOJ has stated that ICAB members helped bring several of this year’s global FCPA resolutions.
Securities, Commodities & Cryptocurrency Enforcement
DOJ’s Market Integrity and Major Frauds Unit resolved three corporate matters and one CEP declination involving over $200 million in criminal penalties. The unit also charged 75 individuals. The schemes involved alleged abuses of 10b5-1 trading plans, insider trading in the equities and commodities market, the largest cryptocurrency nonfungible-token scheme, and the first cryptocurrency open-market manipulation case.
Federal Procurement & Program Fraud
DOJ’s Market Integrity and Major Frauds Unit also investigated and prosecuted fraud in federal procurement and programs. In 2024, DOJ also reached two corporate resolutions with major defense contractors for defective and fraudulent pricing, diversion of federal program funding, and counterfeit electronic parts used by the U.S. military in sensitive defense applications.
Health Care Fraud
DOJ charged 147 individuals for alleged scheme involving more than $3.26 billion in false and fraudulent claims. The Health Care Fraud Unit currently has strike force teams in 26 cities across the nation. Data analytics continues to be a major investigation predicate. The unit’s Data Analytics Team completed 3,229 data requests and 151 proactive investigative referrals. The schemes involved cardio genetic testing, amniotic wound grafts, controlled substance wholesalers, addiction treatment facilities, misbranded medication, laboratory testing, durable medical equipment, and telemedicine.
According to DOJ, telemedicine fraud schemes have “exploded” over the last five years and the Department has responded with seven nationwide enforcement actions. Pharmaceutical distributors also remain an area of focus with ten executives, sales representative, and brokers charged in October 2024 in four federal districts. DOJ also expanded its Sober Homes initiative to combat fraudulent addiction and rehabilitation schemes that targeted Native Americans in Arizona. The initiative has resulted in the over $1.2 billion in alleged false billings for fraudulent tests and treatments for drug and/or alcohol addiction. The Fraud Section has partnered with the U.S. Attorney’s Office for the District of Arizona in this initiative.
False Claims Act
Although not a criminal statute, the False Claims Act is another tool used to combat federal procurement, federal program, and health care fraud. 2024 was a record year for False Claims Act settlements, which exceeded $2.9 billion. The government and whistleblowers were party to 558 settlements and judgments, the second highest total after last year’s record of 566 recoveries, and whistleblowers filed 979 qui tam lawsuits, the highest number in a single year. Settlements and judgments since 1986 exceed $78 billion.
Takeaways
As we look back at the enforcement trends from 2024, there are several key takeaways to consider for the year ahead:
- Data Analytics continues to be a mainstay tool for proactive detection and leads in foreign corruption, health care, and financial fraud enforcement. The Fraud Section’s data analytics team identifies outliers, trends, and patterns in federal health care benefit program billing, market activity against public filing disclosures, and even analyzes data compiled in public sources for foreign corruption matters.
- Whistleblower and Voluntary Self-Disclosure Programs appear to be working. We previously wrote about each of these programs here and here. According to DOJ, the programs have resulted in 180 tips on new or existing investigations. Companies should implement a robust internal reporting system that allows employees to report potential misconduct comfortably and confidentially. Effectively responding to internal complaints can deter whistleblowers from bypassing the company’s reporting system and provides the company with a documented response to present to the DOJ if necessary.
- Foreign Corruption enforcement will continue to expand its international footprint. 2024 resolutions included companies based in China, Germany, Brazil, Spain, Australia, Switzerland, and South Africa. Look to even more enforcement in 2025 with enhanced tools like the Foreign Extortion Prevention Act, the Criminal Division’s International Corporate Anti-Bribery initiative, and the Administration’s renewed focus on Latin America.
- Health Care Fraud enforcement provides an average return on investment of $73.04 per $1 spent and over $3 billion in projected savings. Telemedicine, genetic testing, pharmaceutical distributors, and durable medical equipment will remain areas of enforcement focus.
- Cryptocurrency remains in focus as the market continues to be fertile ground of market manipulation and schemes that exploit decentralized finance and automated trading. Enforcement will likely continue to include domestic and international laundering of crypto-fraud proceeds.
A copy of the full Year in Review report may be found here.