The U.S. Department of Justice’s Fraud Section has released its 2024 Year in Review, highlighting its major fraud enforcement actions and evolving strategies to combat financial crime. This past year marked record-breaking corporate settlements, aggressive enforcement against high-level offenders, and enhanced investigative techniques, all of which have significant implications for fraud examiners and compliance professionals.
A Year of High-Impact Prosecutions
In 2024, the Fraud Section:
✔️ Charged 234 individuals for financial crimes, including corporate executives and professionals.
✔️ Secured convictions against 252 individuals, reflecting a high success rate in prosecutions.
✔️ Resolved cases with over $2.3 billion in corporate settlements, tripling the amount from 2023.
Notably, 35% of those charged were high-ranking executives, attorneys, accountants, and other gatekeepers, signaling a shift toward targeting those enabling fraud schemes rather than just individual perpetrators.
The Most Prolific Fraud Schemes in 2024
The DOJ’s Fraud Section targeted a wide range of financial crimes, but three key fraud schemes dominated enforcement actions in 2024:
1️⃣ Healthcare Fraud & COVID-19 Relief Fraud
The Healthcare Fraud Unit aggressively pursued individuals and entities exploiting federal programs:
•$1.2 billion in fraudulent claims uncovered, including Medicare/Medicaid fraud, kickback schemes, and unnecessary medical services.
•Convictions of doctors, medical professionals, and corporate executives involved in overbilling, false diagnoses, and illegal referrals.
•COVID-19 relief fraud remained a focus, with fraudsters exploiting PPP loans, unemployment assistance, and healthcare relief funds.
2️⃣ Corporate & Securities Fraud
Financial crimes affecting investors and markets resulted in high-profile corporate settlements and prosecutions:
•Market manipulation and insider trading schemes targeted major financial institutions and hedge funds.
•Convictions for executives engaging in fraudulent financial reporting, Ponzi schemes, and investment fraud.
•Increased use of data analytics to detect suspicious trading patterns, pump-and-dump schemes, and accounting fraud.
3️⃣ Foreign Corrupt Practices Act (FCPA) & Bribery
The DOJ’s anti-bribery enforcement surged, targeting international corporate misconduct:
•Resolutions with major multinational corporations spanning China, Germany, Brazil, Spain, Australia, Switzerland, and South Africa.
•The largest-ever corporate settlement for FCPA violations involving a major energy company.
•Introduction of the International Corporate Anti-Bribery (ICAB) Initiative to increase cross-border enforcement.
Cutting-Edge Enforcement Strategies
The Fraud Section introduced several key initiatives in 2024 to improve fraud detection and prosecution:
Corporate Whistleblower Awards Pilot Program – Encourages individuals to report misconduct, similar to SEC whistleblower incentives.
AI & Data Analytics in Fraud Investigations – DOJ analysts used AI-driven detection tools to uncover fraud patterns in market trading, healthcare billing, and financial transactions.
Enhanced Corporate Voluntary Disclosure Policy – Encouraging self-reporting and cooperation to mitigate corporate penalties.
Key Takeaways for Fraud Examiners
Increased Scrutiny of High-Level Executives – Expect more prosecutions of corporate gatekeepers such as accountants, attorneys, and compliance officers.
Data-Driven Investigations – The DOJ’s use of AI and analytics reinforces the importance of forensic accounting and fraud detection technology.
Global Expansion of Fraud Enforcement – The DOJ’s international cases highlight the growing need for compliance programs that address cross-border fraud risks.
As the DOJ Fraud Section enters its 70th year, its enforcement actions continue to shape the landscape of corporate compliance, financial fraud investigations, and anti-corruption efforts. Fraud examiners, compliance officers, and investigators should take note of emerging fraud trends and enforcement priorities to enhance their fraud prevention strategies.
For a full overview of the DOJ Fraud Section’s 2024 Year in Review, visit the Department of Justice website here.
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