U.S. Attorney Jeanine Pirro has created a dedicated Fraud and Asset Recovery Division in Washington aimed at pursuing companies and individuals accused of cheating federal agencies, a move that consolidates prosecutors, investigators, and auditors under one roof.
Pirro announced the new division on Wednesday, naming Dan Schiffer as its chief and Sean Tepe as deputy chief. The unit will handle False Claims Act cases and other civil fraud matters, the federal government's primary legal tools for clawing back money from contractors, health-care providers, and other entities that submit bogus bills to taxpayer-funded programs.
The False Claims Act, originally signed by Abraham Lincoln during the Civil War, allows the government, and private whistleblowers acting on its behalf, to sue anyone who knowingly submits false claims for federal payment. Penalties can reach triple the amount defrauded, plus additional fines per false claim filed. It remains the Justice Department's most powerful civil statute for recovering stolen public funds.
The reorganization addresses what Pirro's office described as a structural bottleneck. Until now, civil fraud enforcement in the U.S. Attorney's office sat inside the Affirmative Civil Enforcement unit, which itself was housed within the broader Civil Division. That division also carries a heavy defensive caseload, representing the federal government when it gets sued, and the defensive workload crowded out the office's ability to go on offense against fraud.
By pulling fraud enforcement out of that shared space and standing it up as its own division, Pirro's office is betting that dedicated staff and a clear chain of command will translate into more cases filed and more money recovered.
Pirro framed the move in direct terms.
"This new Fraud and Asset Recovery Division will reinforce and consolidate our resources to hold fraudsters accountable and recover taxpayer dollars."
The division will bring together federal prosecutors, investigators, auditors, and support staff, a mix designed to handle fraud cases from tip to trial to asset seizure. Pirro's office did not release specific staffing numbers or a budget figure for the new unit.
Dan Schiffer, the new division chief, and Sean Tepe, his deputy, will lead day-to-day operations. Neither man's prior role or professional background was detailed in Pirro's announcement. The office also did not identify which federal agencies or programs the division plans to prioritize, nor whether any active investigations have already been assigned to the unit.
Those gaps matter. Federal fraud enforcement has historically produced enormous returns, the Justice Department has recovered tens of billions of dollars under the False Claims Act over the past three decades, with health-care fraud, defense-contractor overbilling, and pandemic-relief scams among the most common targets. Whether Pirro's new division will focus on legacy fraud streams or pivot toward newer areas such as pandemic-era waste remains an open question.
Pirro herself has drawn both support and opposition since taking office as U.S. Attorney. A left-wing legal group filed a bar complaint against her after a grand jury declined to indict Democratic lawmakers, a move her allies viewed as a politically motivated attempt to sideline an aggressive prosecutor.
She has also faced personal risk in the role. A Long Island man was arrested for allegedly threatening to kill her, a reminder that federal prosecutors pursuing high-profile cases can become targets themselves.
Standing up a dedicated fraud division is a structural choice, not just a staffing shuffle. In most U.S. Attorney's offices, civil fraud work competes for attention with criminal prosecutions, national-security cases, and the government's own defense litigation. Carving fraud out into its own lane signals that Pirro views the problem as large enough, and the existing response as weak enough, to justify permanent reorganization rather than a temporary task force.
The announcement also fits a broader pattern in Pirro's tenure. Her office has pursued aggressive asset-recovery actions, including seizing funds tied to illicit networks, suggesting a prosecutorial philosophy that treats financial recovery as central to the mission rather than an afterthought.
Still, Pirro's position has not been without turbulence. Reports earlier this year indicated that the White House weighed whether to replace her after a high-profile vandalism case fell apart, a reminder that even prosecutors with political backing operate on a short leash when results disappoint.
No dollar figures for anticipated recoveries or historical performance of the old Affirmative Civil Enforcement unit were disclosed. Without a public baseline, it will be difficult for taxpayers or oversight bodies to measure whether the new division delivers on its promise or simply rearranges the furniture.
Taxpayers deserve to know where their money went. If Pirro's new division actually chases the answers, it will have earned its existence, and if it doesn't, the same accountability she promises for fraudsters should apply to her office, too.
