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President Donald Trump created a new division within the Department of Justice (DOJ) devoted to “catch and stop FRAUDSTERS that have been STEALING from the American People.”

The president announced Wednesday on Truth Social he had nominated Colin McDonald to the new position of Assistant Attorney General (AAG) for National Fraud Enforcement.

“My Administration has uncovered Fraud schemes in States like Minnesota and California, where these thieves have stolen Hundreds of Billions of Taxpayer Dollars,” Trump observed, describing McDonald as a “very Smart, Tough, and Highly Respected AMERICA FIRST Federal Prosecutor who has successfully delivered Justice in some of the most difficult and high stakes cases our Country has ever seen.”

“Together, we will END THE FRAUD, and RESTORE INTEGRITY to our Federal Programs,” the president asserted, urging McDonald to “STOP THE SCAMS!”

Deputy Attorney General Todd Blanche described McDonald as “a rockstar, who was instrumental in our team’s mission of Making America Safe Again.”

“He is a consummate prosecutor who loves God, family, and country and will serve the President and the American people well,” Blanche posted to social media.

In his announcement, the president referred to the widely reported “scheme” in Minnesota, where it was found that Somali fraudsters stole an estimated $9 billion in taxpayer Medicaid funds that were supposed to go to feed children, supply aid to autistic children, provide shelter for low-income and disabled Americans, and deliver health care services.

In December, Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), posted the damage on social media.

“These scammers used stolen taxpayer money to buy flashy cars, purchase overseas real estate, and offer kickbacks to parents who enrolled their kids at fake autism treatment centers,” Oz asserted. “Some of it may have even made its way to the Somalian terrorist group Al-Shebab.”

However, a report published January 20 at City Journal warns that fraud – particularly against government-run healthcare programs like Medicare, Medicaid, and Obamacare – are at once “common and costly.”

“Fraudsters routinely scam CMS for billions of dollars,” write Charles Silver and David Hyman. “States themselves run schemes of their own. Covid-related frauds, for example, exceeded $280 billion, with another $123 billion wasted or misspent. Obamacare enrollment fraud is pervasive, likely costing taxpayers $27 billion in 2025 and $21 billion in 2024.”

The report’s authors cite a June 2025 piece at the Washington Post that revealed a stunning Medicare fraud scheme – “one of the largest busts in U.S. history” – in which 11 Eastern Europeans were charged in $10.6 billion in false health care claims and stolen personal information – stolen from over a million Americans in every state in the nation.

“Prosecutors say the organization bought more than 30 previously legitimate U.S. companies and turned them from lawful businesses into consistent vehicles for fraud,” the Post reported, citing a prior report that federal authorities “had zeroed in on claims submitted by seven companies operating out of Connecticut, Florida, Kentucky, New York and Texas that were believed to be behind a surge of bills submitted to Medicare for catheters across the prior two years.”

The Post’s review of state and federal records uncovered the connections among the businesses.

“Six of the seven companies had critical reviews on Yelp, the Better Business Bureau, Facebook or other sites complaining of Medicare fraud involving catheters,” the Post noted, adding that prosecutors found that the schemers “targeted the medical equipment business at the heart of their scheme because of their preexisting clearances to bill Medicare and supplemental insurance companies.”

“After gaining control of the companies, the organization allegedly installed new owners to perpetuate the fraudulent billings — many of whom were foreign nationals not lawfully present in the United States, the indictment said,” the Post reported.

Oz announced in his December social media post that, as for Minnesota, CMS will “stop paying the federal share of these programs” if state officials do not meet specific criteria and comply with federal oversight to restore the integrity of the Medicaid program.

“That’s great news, but the same scams are running in every state, and CMS knows it,” the City Journal authors observe, challenging the Trump administration to do more.

It remains to be seen if the appointment of McDonald as the new AAG for National Fraud Enforcement will be the “more” that is needed.

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