SUPPLEMENTARY INFORMATION:

I. Background and Mission

The Department has established the Fraud Division as part of a revamped, comprehensive approach to investigating and prosecuting fraud against taxpayer dollars and taxpayer-funded programs.^[1] The Fraud Division's mission is to investigate and prosecute those who commit fraud against the American people. At the core of this mission is a mandate to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The Fraud Division fulfills its mission by using advanced, data-driven investigative techniques; coordinating with agencies responsible for administering taxpayer-funded programs; partnering with Federal, Tribal, State, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification and investigation of fraud; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The Fraud Division works every day to protect the financial integrity of the United States of America, ensure the vibrancy of the American economy, and seek justice for victims of fraud.

II. This Rule

Through this rule, the Attorney General delegates certain powers and authorities to the Assistant Attorney General for the Fraud Division and makes conforming amendments to the authorities previously delegated to the Assistant Attorney General for the Criminal Division (“CRM”). The rule creates a new subpart M, composed of §§ 0.70 and 0.71 and which sets forth the Fraud Division's general functions and authorities, and makes conforming changes to CRM's regulations at § 0.55, as discussed below.

A. Section 0.70

Section 0.70 sets forth the functions assigned to and that shall be conducted, handled, or supervised by the Assistant Attorney General for the Fraud Division. These include handling: (1) criminal proceedings involving criminal frauds except cases assigned to the Antitrust Division by § 0.40(a), see28 CFR 0.70(a); (2) criminal proceedings arising under the internal revenue laws, see28 CFR 0.70(b); (3) criminal proceedings relating to trade fraud matters, including the importation of goods, items, articles, merchandise, products, materials, or wares; customs duties, tariffs, or other external revenue; or foreign commerce, see28 CFR 0.70(c); (4) criminal proceedings involving monies owed to or paid by the United States, see28 CFR 0.70(d); (5) criminal proceedings involving fraud or abuse with respect to health plans, see28 CFR 0.70(e); and (6) criminal proceedings related to health care fraud and controlled substances distribution and diversion schemes, see28 CFR 0.70(f).

To ensure necessary flexibility, § 0.70 also includes two paragraphs allowing the Fraud Division to oversee additional cases or types of cases assigned by the Attorney General or Deputy Attorney General or by agreement with the Assistant Attorney General having authority to handle such cases. See28 CFR 0.70(g), (h). Similarly, paragraph (i) provides the Fraud Division authority to bring actions to seek injunctions against fraud under 18 U.S.C. 1345, obtain restitution, seize or forfeit property, recover forfeitures or damages, enforce compliance with final judgments, recover penalties, and impose penalties, including actions for the imposition of penalties for conspiring to defraud the United States, when such actions are related to proceedings identified in paragraphs (a) through (f). See28 CFR 0.70(i). And paragraph (j) provides the Fraud Division authority to prosecute any Federal criminal provision when charged in criminal proceedings brought pursuant to paragraphs (a) through (f). See28 CFR 0.70(j). Paragraph (k) allows FRD to investigate criminal conduct in pursuit of cases under paragraphs (a) through (f) and to prosecute any criminal charges identified as a result of such investigations whether or not such prosecutions fit within the descriptions in paragraphs (a) through (f). See28 CFR 0.70(k). Finally, paragraph ( l) allows the Attorney General or Deputy Attorney General to assign the Fraud Division other duties and functions. See28 CFR 0.70( l).

B. Section 0.55

The Department is amending CRM's provisions in § 0.55 in three ways. First, the rule revises the paragraph generally assigning criminal fraud litigation to CRM to carve out cases involving frauds that are now specifically assigned to the Fraud Division— i.e., tax frauds and fraud with respect to health plans. See28 CFR 0.55(b). Second, the rule revises CRM's authority to handle “[a]ll” criminal and civil litigation under two acts relating to controlled substances by removing the word “all”. See28 CFR 0.55(c). This change will ensure that CRM does not have exclusive authority to bring charges under such provisions, such that the Fraud Division may bring such charges where authorized to do so. Third, the rule removes paragraph (w), which previously assigned to CRM all criminal proceedings arising under the internal revenue laws. See generally Transfer of the Functions of the Tax Division to the Civil Division and the ( printed page 53358) Criminal Division, 90 FR 57139, 57140 (Dec. 10, 2025) (assigning criminal tax prosecutions to CRM).

C. Section 0.71

The rule adds new § 0.71, which mirrors CRM's provision at § 0.59. It allows the Assistant Attorney General of the Fraud Division (or his Deputy Assistant Attorneys General, as applicable) to exercise functions assigned to the Attorney General under 18 U.S.C. 3331 and 3503 relating to the certification of special grand juries, see28 CFR 0.71(a), and certification that a legal proceeding is against a person who is believed to have participated in an organized criminal activity, for purposes of obtaining depositions to preserve testimony, see28 CFR 0.71(b).

D. Other Changes

This rule makes two other technical and consistency changes. First, the rule adds the “National Fraud Enforcement Division” to the table of organizational units within the Department in § 0.1. Second, the rule amends paragraph (b) of § 0.13 to allow Assistant Attorneys General to redelegate all litigating authority to Section Chiefs by removing a prohibition on redelegating authority to designate attorneys to conduct grand jury proceedings. This change allows Assistant Attorneys General greater flexibility in managing their duties and responsibilities.

II. Regulatory Requirements

A. Administrative Procedure Act

This rule is a rule of agency organization, procedure, and practice; is limited to matters of agency management and personnel; and is not a substantive rule. Therefore, this rule is exempt from the requirements of prior notice and comment and a 30-day delay in the effective date. See5 U.S.C. 553(a)(2), (b)(3)(A), (d).

B. Executive Order 12866 (Regulatory Planning and Review), Executive Order 13563 (Improving Regulation and Regulatory Review), and Executive Order 14192 (Unleashing Prosperity Through Deregulation)

This final rule is not a significant regulatory action under section 3(f) of Executive Order 12866, as supplemented by Executive Order 13563. This rule is limited to agency organization, management, and personnel as described by section 3(d)(3) of Executive Order 12866 and therefore is not a “regulation” or “rule” as defined by that Executive Order. Accordingly, this action has not been reviewed by the Office of Management and Budget. Further, as this rule relates to agency organization, management, or personnel, it is not subject to the requirements of Executive Order 14192.

C. Executive Order 14294 (Overcriminalization of Federal Regulations)

Executive Order 14294 requires agencies promulgating regulations with criminal regulatory offenses potentially subject to criminal enforcement to explicitly describe the conduct subject to criminal enforcement, the authorizing statutes, and the mens rea standard applicable to each element of those offenses. This final rule does not impose a criminal regulatory penalty and is thus exempt from Executive Order 14924's requirements.

D. Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. 5 U.S.C. 601.

A Regulatory Flexibility Analysis is not required for this final rule because the Department is not required to publish a general notice of proposed rulemaking for this matter. 5 U.S.C. 603(a).

E. Paperwork Reduction Act

This final rule does not call for a new or revised collection of information under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

F. Executive Order 13132 (Federalism)

A rule has federalism implications under Executive Order 13132 if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. The Department has analyzed this final rule under that Executive Order and determined that this rule does not have federalism implications.

G. Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to determine whether a rule, if promulgated, will result in the expenditure by State, local, or Tribal governments, in the aggregate, or by the private sector, of $100 million (adjusted annually for inflation) or more in any one year. 2 U.S.C. 1532(a). This final rule does not require or result in expenditures by any of the above-named entities.

H. Executive Order 12988 (Civil Justice Reform), Plain Language

This final rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988.

I. Executive Order 13175 (Consultation and Coordination With Indian Tribal Governments)

This final rule does not have Tribal implications under Executive Order 13175 because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes.

J. Congressional Review Act

This rule relates to agency management, personnel, and organization, and does not substantially affect the rights or obligations of non-agency parties. 5 U.S.C. 804(3)(B), (C). This action is accordingly not a “rule” as that term is used in the Congressional Review Act, see5 U.S.C. 804(3), and the reporting requirement of 5 U.S.C. 801 does not apply.

Accordingly, for the reasons stated in the preamble, the Acting Attorney General is amending part 0 of 28 CFR as follows:

91 FR 53357