By Ethan Faverino |
Legislation cosponsored by Arizona Congressman Abe Hamadeh (R-AZ08) that would establish a permanent fraud enforcement division within the U.S. Department of Justice passed the House last week.
The House approved H.R. 9576, the National Fraud Enforcement Division Act of 2026, in a 352-72 vote.
The legislation, sponsored by Rep. Brad Finstad (R-MN), would formally establish the National Fraud Enforcement Division within the Justice Department and place it under the leadership of an assistant attorney general appointed by the President and confirmed by the Senate.
Hamadeh is one of four cosponsors of the legislation, alongside Reps. Derek Schmidt (R-KS-02), Harriet Hageman (R-WY-At Large), and Michelle Fischbach (R-MN-07).
“I want to thank my colleagues for passing this critical legislation,” said Hamadeh. “The criminals, who have created the need for this enforcement effort, have not only stolen taxpayer dollars, but have victimized the most vulnerable in our society by depleting the resources allocated for their needs.”
The legislation would give the division responsibility for leading DOJ efforts to investigate, prosecute, and remedy fraud affecting the federal government, federally funded programs, and U.S. citizens.
The division would also oversee multi-district and multi-agency fraud investigations, assist U.S. Attorneys’ Offices with fraud-related cases, coordinate with federal agencies to identify organized fraud schemes, and develop national fraud enforcement priorities.
Under the bill, the assistant attorney general leading the division could also propose legislative and regulatory changes intended to address vulnerabilities that allow fraud to occur and advise the attorney general and deputy attorney general on significant fraud investigations and prosecutions.
The Justice Department established the National Fraud Enforcement Division earlier this year as part of a broader federal effort to combat fraud involving taxpayer-funded programs.
Acting Attorney General Todd Blanche issued a memorandum in April directing the division to coordinate with agencies administering benefit programs and with federal, tribal, state, territorial, and local law enforcement.
The House legislation would give the division a statutory basis rather than leaving its existence solely to executive branch action.
Hamadeh pointed to a recently announced Arizona Medicaid fraud case as an example of the type of alleged fraud federal authorities are targeting.
Federal prosecutors announced in early September that a Peoria man was charged with health care fraud and money laundering after allegedly billing the Arizona Health Care Cost Containment System (AHCCCS) more than $33 million between May 2022 and May 2023.
According to the U.S. Attorney’s Office for the District of Arizona, Maurice Marcell Williams, 48, owned and operated a behavioral treatment provider and allegedly submitted claims to AHCCCS for services that were never provided.
Prosecutors allege Williams targeted members enrolled in the American Indian Health Care Program.
Although more than $33 million was billed, federal prosecutors said AHCCCS actually paid approximately $19.7 million on the allegedly fraudulent claims.
The indictment also seeks forfeiture of two residential properties, a Rolls-Royce Cullinan, and brokerage accounts.
Williams has been charged but not convicted.
Hamadeh said the case demonstrated how fraud involving federal benefit programs can affect resources intended for vulnerable populations.
“He specifically targeted AHCCCS enrollees who were covered under the American Indian Health Care Program,” said Hamadeh. “He exploited vulnerable people to buy expensive property and luxury items. These federal funds are finite, so not only did he target a vulnerable population, but his thievery also serves to weaken the crucial safety net Americans need for education, medical care, retirement, and more.”
The DOJ says the National Fraud Enforcement Division uses data-driven investigative methods and coordinates with government agencies and law enforcement partners to identify and prosecute fraud.
Its work also supports the Trump administration’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance.
H.R. 9576 was introduced by Finstad on July 2. Following Wednesday’s House Passage, the legislation would need Senate approval before it could be sent to the President.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
