President Donald Trump has obviously made combating waste, fraud, and abuse of taxpayer dollars a priority in his second term, having appointed Vice President JD Vance as “fraud czar,” whose mission is to root out theft of government funds.
Now, another member of Trump’s administration is following suit.
U.S. Attorney Jeanine Pirro has created a new specialized division in Washington dedicated to investigating fraud against the federal government and recovering taxpayer money, significantly expanding the capital’s civil anti-fraud operation.
Pirro announced the creation of the Fraud and Asset Recovery Division on Wednesday, saying the unit will consolidate prosecutors, investigators, auditors, and support personnel who formerly worked across a smaller enforcement operation.
Dan Schiffer will serve as chief of the new division, while Sean M. Tepe has been named deputy chief.
“President Trump has prioritized the elimination of fraud, waste, and abuse involving federal agencies and programs,” Pirro said.
“This new Fraud and Asset Recovery Division will reinforce and consolidate our resources to hold fraudsters accountable and recover taxpayer dollars,” she added. “We are sending a clear message: those who cheat the federal government will face decisive, coordinated action.”
The division will concentrate heavily on cases brought under the federal False Claims Act, one of the government’s most powerful tools for recovering money obtained through fraud.
The law allows the government to pursue individuals and businesses accused of knowingly submitting false claims for federal money or causing others to submit fraudulent claims.
Potential cases can involve government contractors, health care providers, pharmaceutical companies, defense contractors, and businesses participating in federal programs.
The False Claims Act can impose significant financial consequences.
Defendants found liable can be required to pay three times the government’s damages, in addition to civil penalties.
The law also contains provisions allowing private whistleblowers, known as relators, to file lawsuits on behalf of the federal government.
🚨BREAKING:
“The people doing the looting are creating FACTORIES to facilitate their con… primary in Southeast Asia. THEY KNOW we’re coming for them. They’re staffed with human trafficked labor.” — US Attorney for DC Jeanine Pirro
US ATTORNEY JEANINE PIRRO ANNOUNCES MAJOR… pic.twitter.com/7KILNjX5bN
— Save America 🇺🇲 (@SaveAmericaNew) September 26, 2026
Whistleblowers can receive a portion of money recovered through successful cases, creating a financial incentive for people with inside information to report fraud.
The District of Columbia is particularly important for such enforcement because many federal agencies and contractors are located there.
Pirro’s office said the district is a viable venue for False Claims Act matters involving health care, government procurement, defense contracting and cybersecurity.
The office also consistently ranks among the country’s busiest jurisdictions for whistleblower lawsuits.
Federal prosecutors in Washington have previously recovered billions of dollars through False Claims Act cases.
Those matters have included allegations involving improper government-contract billing, software companies accused of overcharging federal agencies, medical-device manufacturers accused of improper marketing and pharmaceutical companies accused of violating federal requirements.
“President Trump has made it clear that this administration and the American people will not stand for the fraud, waste and abuse that was commonplace throughout these agencies,” said U.S. Attorney Pirro. “This egregious example of corruption at the very top of the U.S. African… pic.twitter.com/Q8jJ9cHi7j
— U.S. Attorney DC (@USAO_DC) January 30, 2026
The new division does not create entirely new prosecutorial authority. Instead, Pirro is reorganizing and expanding resources previously assigned to the Affirmative Civil Enforcement unit within the U.S. Attorney’s Office Civil Division.
That unit was responsible for pursuing fraud and other affirmative cases on behalf of the federal government while the broader Civil Division simultaneously handled a large defensive workload involving lawsuits filed against the government.
Pirro’s office said those competing responsibilities had increasingly limited the personnel available for proactive fraud investigations.
The new structure separates those functions.
Prosecutors and staff assigned to the Fraud and Asset Recovery Division will focus exclusively on affirmative civil litigation in which the United States is seeking money, property or other relief.
The division’s responsibilities will extend beyond traditional False Claims Act cases.
It will also handle civil collections for federal agencies, enforcement of subpoenas issued by agencies and inspectors general, and civil asset-forfeiture proceedings, the DOJ noted.
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