In remarks delivered on June 3, 2026, at the American Conference Institute’s Global Anti-Corruption, Ethics & Compliance Conference in New York City, Assistant Attorney General A. Tysen Duva, the head of the U.S. Department of Justice’s (“DOJ”) Criminal Division, provided the clearest public indication to date of how DOJ intends to divide fraud enforcement responsibilities between the Criminal Division’s Fraud Section and the newly created National Fraud Enforcement Division (“NFED”).
Under the emerging structure, NFED will focus on government program fraud, i.e., criminal offenses involving public payers and public systems, including taxpayer-funded programs, while the Criminal Division’s Fraud Section will remain focused on private-sector market, consumer, and corporate fraud matters—a traditional strength of the Unit previously known as Market Integrity & Major Frauds, which will remain part of the Criminal Division. Duva further emphasized that the Fraud Section will be focusing on securities and major financial fraud schemes, global fraud, and prediction markets, and is actively looking to further build capacity by hiring talented lawyers.
The remarks largely confirm earlier expectations that DOJ would eventually provide greater clarity regarding the respective roles of the Criminal Division and NFED following NFED’s creation. We examine what Duva’s comments reveal about DOJ’s enforcement priorities, staffing changes, and the implications for future enforcement activity.
https://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/AdobeStock_71272800.jpg400600Lisa H. Millerhttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngLisa H. Miller2026-06-05 11:02:522026-06-05 13:00:21New Clarity Emerges on DOJ’s Fraud Enforcement Reorganization
In a win for the U.S. Securities and Exchange Commission (“SEC”), the U.S. Supreme Court ruled today in Sripetch v. SEC, No. 25-466 (June 4, 2026) that an SEC disgorgement award does not require proof of pecuniary loss by investors. The case involved the new statutory disgorgement remedy (in Exchange Act Section 21(d)(7)) that Congress added in 2021, following the Supreme Court’s decisions in Kokesh and Liu, which together curtailed the SEC’s disgorgement remedy by subjecting it to statutory time limits and equitable constraints.
The practical result is that the SEC will have a somewhat easier time obtaining disgorgement awards in future enforcement cases. But the Supreme Court’s decision explicitly left open a number of interesting questions: whether the equitable constraints identified in Liu apply to the new statutory disgorgement remedy (the Court assumed here that they do), whether disgorgement is available when it is infeasible to distribute funds to investors, and whether the Seventh Amendment jury trial right under Jarkesy is implicated by the disgorgement remedy. How the SEC pursues disgorgement awards going forward may implicate all those questions and lead to future litigation. We’ll be watching closely.
On May 19, 2026, Nicole Sarrine, Deputy Assistant Attorney General (DAAG) for Civil Conduct in the U.S. Department of Justice (DOJ) Antitrust Division, signaled increasing suspicion of vertically integrated companies in the healthcare sector in remarks delivered at the Transparency Rising 2026 National Forum.[1](more…)
https://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/02/MN-24015-Enhanced-Scrutiny-Blog-Imagery-Refresh_11.jpg606833Juan A. Arteagahttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngJuan A. Arteaga2026-06-03 19:40:092026-06-04 10:01:28DOJ Signals Increasing Scrutiny of Vertically Integrated Healthcare Companies
On May 27, 2026, the United States Attorney’s Office for the Northern District of Illinois announced that it had implemented internal reforms concerning the Office’s practices and disclosures related to grand juries. The announcement followed the recent discovery of extensive prosecutorial misconduct before a grand jury resulting in dismissal with prejudice of the high-profile “Broadview Six” prosecutions. While the details of the reforms remain unclear, the announcement reflects a recognition that change was needed to address past practices and may provide an opportunity for criminal defendants to seek grand jury disclosures and relief if misconduct is uncovered.
http://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.png00Daniel C. Craighttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngDaniel C. Craig2026-06-02 10:13:122026-06-02 10:13:12U.S. Attorney’s Office in Chicago Announces Reforms For Grand Jury Proceedings
The CFTC’s Division of Enforcement has issued a significant new policy on cooperation that reshapes how self-reporting, cooperation, and remediation will affect enforcement outcomes. The May 19, 2026 Staff Advisory replaces prior guidance and, for the first time, creates a defined framework for when the Division may decline to recommend an enforcement action altogether.
The policy establishes detailed criteria for declinations, including prompt voluntary self-reporting, full cooperation, timely remediation, and restitution or disgorgement, while also introducing structured penalty reduction tiers of up to 75% for parties that cooperate even if they do not qualify for a declination. At the same time, the guidance raises the stakes on timing, requiring parties to report misconduct “at the earliest possible opportunity.”
The new internal guidance provides important insight into how the Division intends to exercise prosecutorial discretion and will have significant implications for firms evaluating potential misconduct, internal investigations, and disclosure decisions. Read the full Sidley post for a detailed analysis of the policy’s requirements, cooperation credit framework, and practical considerations for market participants. The CFTC press release can be found here.
http://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.png00Nathan A. Howellhttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngNathan A. Howell2026-05-28 14:33:102026-05-28 13:33:30CFTC Division of Enforcement Issues New Cooperation Policy
It is not business as usual at DOJ. In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’ Offices to accelerate the review of qui tams alleging fraud against federally funded state-administered benefits programs, including programs involving housing, food assistance, medical care, and cash assistance. The memorandum, titled “Accelerating Review and Enhancing Enforcement in Benefits Fraud Matters,” implements President Trump’s March 2026 Executive Order establishing the “Task Force to Eliminate Fraud,” which we reported on here, and which directed the Department to take appropriate action to promote “meritorious” qui tams and to complete investigations sooner, including within the 60-day statutory period.
https://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/AdobeStock_71272800.jpg400600Kristin Graham Koehlerhttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngKristin Graham Koehler2026-05-28 11:32:382026-05-28 12:17:59DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs
On May 15, 2026, the U.S. Department of Justice and the Texas Attorney General announced the first publicly disclosed settlement arising from the federal government’s nationwide investigation into gender-affirming care for minors. The resolution with Texas Children’s Hospital reflects a coordinated federal-state enforcement approach grounded in False Claims Act (“FCA”) and Federal Food, Drug, and Cosmetic Act (“FDCA”) theories, alongside significant non-monetary remedies extending beyond traditional healthcare fraud settlements. In addition to a substantial monetary payment, the agreements impose operational, clinical, and governance-related obligations that may signal how enforcement authorities intend to pursue similar matters going forward.
This blog post examines the settlement terms, the broader federal policy and enforcement framework underlying the investigation, and the implications for healthcare providers and life sciences companies navigating areas of aligned federal and state enforcement focus. Click to read more about the resolution and what it may signal for future DOJ and state attorney general enforcement activity.
http://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.png00Doreen M. Rachalhttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngDoreen M. Rachal2026-05-26 12:12:172026-05-27 15:08:04DOJ and Texas AG Announce First Settlement in National Investigation of Gender-Affirming Care for Minors
On May 8, 2026, the U.S. Department of Justice appealed Judge Kenneth Hoyt’s post-verdict acquittal in the FCPA prosecution of Ramón Alexandro Rovirosa Martínez, setting up what could become a significant Fifth Circuit decision on both double jeopardy and the use of translated foreign language evidence in federal criminal trials.
Although a Houston jury convicted Rovirosa in December 2025 on conspiracy and substantive FCPA charges tied to alleged bribery of officials at Mexico’s state-owned oil company, Pemex, Judge Hoyt later vacated the convictions, concluding that the Government’s reliance on certified English translations of Spanish language communications violated the Sixth Amendment’s Confrontation Clause because the translators themselves did not testify.
The appeal raises potentially consequential questions about whether post-verdict acquittals can be reviewed without violating double jeopardy protections, and whether certified translations of foreign language communications are “testimonial” statements requiring live confrontation. This blog post explores those issues and places the appeal in the broader context of the Fifth Circuit’s continuing scrutiny of major FCPA decisions.
https://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/05/MN-18360_Updated-Enhanced-Scrutiny-Blog-imagery_833x606_32.jpg606833Lisa H. Millerhttp://whitecollarwatch.sidley.com/wp-content/uploads/sites/8/2026/03/sidleyLogo-e1643922598198.pngLisa H. Miller2026-05-21 16:50:372026-05-21 16:50:37Back Before the Fifth Circuit: DOJ Appeals Another FCPA Acquittal
New Clarity Emerges on DOJ’s Fraud Enforcement Reorganization
In remarks delivered on June 3, 2026, at the American Conference Institute’s Global Anti-Corruption, Ethics & Compliance Conference in New York City, Assistant Attorney General A. Tysen Duva, the head of the U.S. Department of Justice’s (“DOJ”) Criminal Division, provided the clearest public indication to date of how DOJ intends to divide fraud enforcement responsibilities between the Criminal Division’s Fraud Section and the newly created National Fraud Enforcement Division (“NFED”).
Under the emerging structure, NFED will focus on government program fraud, i.e., criminal offenses involving public payers and public systems, including taxpayer-funded programs, while the Criminal Division’s Fraud Section will remain focused on private-sector market, consumer, and corporate fraud matters—a traditional strength of the Unit previously known as Market Integrity & Major Frauds, which will remain part of the Criminal Division. Duva further emphasized that the Fraud Section will be focusing on securities and major financial fraud schemes, global fraud, and prediction markets, and is actively looking to further build capacity by hiring talented lawyers.
The remarks largely confirm earlier expectations that DOJ would eventually provide greater clarity regarding the respective roles of the Criminal Division and NFED following NFED’s creation. We examine what Duva’s comments reveal about DOJ’s enforcement priorities, staffing changes, and the implications for future enforcement activity.
Lisa H. Miller
Washington, D.C.
lisa.miller@sidley.com
Michael D. Mann
New York
mdmann@sidley.com
Asher J. Zlotnik
New York
asher.zlotnik@sidley.com
Supreme Court Rules for SEC on Disgorgement Awards
In a win for the U.S. Securities and Exchange Commission (“SEC”), the U.S. Supreme Court ruled today in Sripetch v. SEC, No. 25-466 (June 4, 2026) that an SEC disgorgement award does not require proof of pecuniary loss by investors. The case involved the new statutory disgorgement remedy (in Exchange Act Section 21(d)(7)) that Congress added in 2021, following the Supreme Court’s decisions in Kokesh and Liu, which together curtailed the SEC’s disgorgement remedy by subjecting it to statutory time limits and equitable constraints.
The practical result is that the SEC will have a somewhat easier time obtaining disgorgement awards in future enforcement cases. But the Supreme Court’s decision explicitly left open a number of interesting questions: whether the equitable constraints identified in Liu apply to the new statutory disgorgement remedy (the Court assumed here that they do), whether disgorgement is available when it is infeasible to distribute funds to investors, and whether the Seventh Amendment jury trial right under Jarkesy is implicated by the disgorgement remedy. How the SEC pursues disgorgement awards going forward may implicate all those questions and lead to future litigation. We’ll be watching closely.
White Collar Watch
DOJ Signals Increasing Scrutiny of Vertically Integrated Healthcare Companies
On May 19, 2026, Nicole Sarrine, Deputy Assistant Attorney General (DAAG) for Civil Conduct in the U.S. Department of Justice (DOJ) Antitrust Division, signaled increasing suspicion of vertically integrated companies in the healthcare sector in remarks delivered at the Transparency Rising 2026 National Forum.[1] (more…)
Juan A. Arteaga
New York
juan.arteaga@sidley.com
Lisa H. Miller
Washington, D.C.
lisa.miller@sidley.com
Kenneth A. Polite Jr.
Washington, D.C., New York
kpolite@sidley.com
Corey Roush
Washington, D.C.
corey.roush@sidley.com
David C. Ahnen
Washington, D.C.
david.ahnen@sidley.com
U.S. Attorney’s Office in Chicago Announces Reforms For Grand Jury Proceedings
On May 27, 2026, the United States Attorney’s Office for the Northern District of Illinois announced that it had implemented internal reforms concerning the Office’s practices and disclosures related to grand juries. The announcement followed the recent discovery of extensive prosecutorial misconduct before a grand jury resulting in dismissal with prejudice of the high-profile “Broadview Six” prosecutions. While the details of the reforms remain unclear, the announcement reflects a recognition that change was needed to address past practices and may provide an opportunity for criminal defendants to seek grand jury disclosures and relief if misconduct is uncovered.
Daniel C. Craig
Chicago
dcraig@sidley.com
Joan E. Jacobson
Chicago
joan.jacobson@sidley.com
CFTC Division of Enforcement Issues New Cooperation Policy
The CFTC’s Division of Enforcement has issued a significant new policy on cooperation that reshapes how self-reporting, cooperation, and remediation will affect enforcement outcomes. The May 19, 2026 Staff Advisory replaces prior guidance and, for the first time, creates a defined framework for when the Division may decline to recommend an enforcement action altogether.
The policy establishes detailed criteria for declinations, including prompt voluntary self-reporting, full cooperation, timely remediation, and restitution or disgorgement, while also introducing structured penalty reduction tiers of up to 75% for parties that cooperate even if they do not qualify for a declination. At the same time, the guidance raises the stakes on timing, requiring parties to report misconduct “at the earliest possible opportunity.”
The new internal guidance provides important insight into how the Division intends to exercise prosecutorial discretion and will have significant implications for firms evaluating potential misconduct, internal investigations, and disclosure decisions. Read the full Sidley post for a detailed analysis of the policy’s requirements, cooperation credit framework, and practical considerations for market participants. The CFTC press release can be found here.
(more…)
Nathan A. Howell
Chicago
nhowell@sidley.com
Kate Lashley
Miami, New York
klashley@sidley.com
Peter Malyshev
Washington, D.C.
peter.malyshev@sidley.com
Ian McGinley
New York
ian.mcginley@sidley.com
Rebecca Lewis Tierney
Chicago
rebecca.lewistierney@sidley.com
Hector Pagan
Boston
hector.pagan@sidley.com
DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs
It is not business as usual at DOJ. In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’ Offices to accelerate the review of qui tams alleging fraud against federally funded state-administered benefits programs, including programs involving housing, food assistance, medical care, and cash assistance. The memorandum, titled “Accelerating Review and Enhancing Enforcement in Benefits Fraud Matters,” implements President Trump’s March 2026 Executive Order establishing the “Task Force to Eliminate Fraud,” which we reported on here, and which directed the Department to take appropriate action to promote “meritorious” qui tams and to complete investigations sooner, including within the 60-day statutory period.
Kristin Graham Koehler
Washington, D.C.
kkoehler@sidley.com
Jaime L.M. Jones
Chicago
jaime.jones@sidley.com
Lisa H. Miller
Washington, D.C.
lisa.miller@sidley.com
Kenneth G. Coffin
Dallas
kenneth.coffin@sidley.com
DOJ and Texas AG Announce First Settlement in National Investigation of Gender-Affirming Care for Minors
On May 15, 2026, the U.S. Department of Justice and the Texas Attorney General announced the first publicly disclosed settlement arising from the federal government’s nationwide investigation into gender-affirming care for minors. The resolution with Texas Children’s Hospital reflects a coordinated federal-state enforcement approach grounded in False Claims Act (“FCA”) and Federal Food, Drug, and Cosmetic Act (“FDCA”) theories, alongside significant non-monetary remedies extending beyond traditional healthcare fraud settlements. In addition to a substantial monetary payment, the agreements impose operational, clinical, and governance-related obligations that may signal how enforcement authorities intend to pursue similar matters going forward.
This blog post examines the settlement terms, the broader federal policy and enforcement framework underlying the investigation, and the implications for healthcare providers and life sciences companies navigating areas of aligned federal and state enforcement focus. Click to read more about the resolution and what it may signal for future DOJ and state attorney general enforcement activity.
Doreen M. Rachal
New York, Boston
drachal@sidley.com
Shu Min Ho
Singapore
shumin.ho@sidley.com
Kenneth G. Coffin
Dallas
kenneth.coffin@sidley.com
Lucia Radder Quick
New York
lradderquick@sidley.com
Nicole A. Heise
Chicago
nheise@sidley.com
Back Before the Fifth Circuit: DOJ Appeals Another FCPA Acquittal
On May 8, 2026, the U.S. Department of Justice appealed Judge Kenneth Hoyt’s post-verdict acquittal in the FCPA prosecution of Ramón Alexandro Rovirosa Martínez, setting up what could become a significant Fifth Circuit decision on both double jeopardy and the use of translated foreign language evidence in federal criminal trials.
Although a Houston jury convicted Rovirosa in December 2025 on conspiracy and substantive FCPA charges tied to alleged bribery of officials at Mexico’s state-owned oil company, Pemex, Judge Hoyt later vacated the convictions, concluding that the Government’s reliance on certified English translations of Spanish language communications violated the Sixth Amendment’s Confrontation Clause because the translators themselves did not testify.
The appeal raises potentially consequential questions about whether post-verdict acquittals can be reviewed without violating double jeopardy protections, and whether certified translations of foreign language communications are “testimonial” statements requiring live confrontation. This blog post explores those issues and places the appeal in the broader context of the Fifth Circuit’s continuing scrutiny of major FCPA decisions.
Lisa H. Miller
Washington, D.C.
lisa.miller@sidley.com
Michael D. Mann
New York
mdmann@sidley.com
Asher J. Zlotnik
New York
asher.zlotnik@sidley.com
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