Senate Democrats call foul on DOJ ‘fraud enforcement’ program

WASHINGTON (CN) — A pair of Senate Democrats on Friday demanded Attorney General Pam Bondi turn over information about the makeup and operations of the Trump administration’s newly created “national fraud enforcement” office.

They also pressed for clarity on whether the Senate-confirmed assistant attorney general in charge of the new division would report solely to the Justice Department — or if they would be subject to oversight from the White House or other administration officials.

The Trump administration last month announced it would create a new office within the Justice Department aimed at addressing what the president has called “rampant and pervasive” fraud targeting federal government programs and benefits. Trump has nominated Colin McDonald, a former federal prosecutor currently serving as an assistant to Deputy Attorney General Todd Blanche, to lead it.

But while an agency organization chart shows the official would report to Blanche and Bondi, Vice President JD Vance told reporters last month that the new office would be “run out of the White House” and would answer to him and Trump.

The White House has also reportedly set up a separate anti-fraud task force, chaired by Vance and Federal Trade Commission Chairman Andrew Ferguson, which will include the Justice Department’s national fraud enforcement division.

In a letter to Bond on Friday, Illinois Senator Dick Durbin and Maryland Senator Chris Van Hollen urged the attorney general to explain the fraud division’s chain of command.

“Will Vice President Vance, FTC Chair Ferguson or any other Administration official outside of DOJ have any oversight, direction or control over the National Fraud Enforcement Division?” the senators asked Bondi.

The lawmakers pointed out that the Senate Judiciary Committee — where Durbin serves as ranking member — will soon consider McDonald’s nomination to lead the fraud enforcement section. They said that ahead of his testimony to the panel, they would need additional information about the division’s structure, operations and enforcement priorities.

Among other requests, Durbin and Van Hollen asked Bondi to turn over details about how many attorneys will work in the fraud enforcement division and which existing Justice Department offices they will be reassigned from. The lawmakers also demanded information about the section’s funding and whether its responsibilities would be limited to investigating fraud against the federal government.

The senators told Bondi it was “puzzling” that the administration wanted to establish a new Justice Department office centered around fraud when they said Trump had “dismantled or undermined” similar agency programs over the past year.

They pointed out that in April, the Justice Department disbanded its team responsible for prosecuting cryptocurrency fraud schemes. They also cited efforts to pare down the agency’s public integrity section.

Durbin and Van Hollen gave Bondi about one week, until Feb. 27, to respond to their inquiries.

McDonald is expected to soon appear before the Senate Judiciary Committee for a public hearing in a process similar to other senior Justice Department officials nominated by the president.

Last month, a source with knowledge of the nomination told Courthouse News that lawmakers had received McDonald’s written committee questionnaire. As of Friday afternoon, though, the Judiciary Committee’s Republican leadership had yet to schedule a hearing.

Trump’s new fraud enforcement division will be a brand-new wing of the Justice Department, but the agency already investigates fraud via the its civil and criminal divisions. So too do U.S. attorneys’ offices across the country.

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