Your daily briefing on enforcement actions, regulatory developments, and accountability news.
Government
IBM settles for $17 million in first-ever False Claims Act DEI case. The Department of Justice announced that IBM agreed to pay $17 million to resolve allegations that its diversity, equity, and inclusion practices constituted discriminatory employment practices in violation of federal contracting requirements. Acting Attorney General Todd Blanche called it the first resolution under the Civil Rights Fraud Initiative launched in May 2025. IBM denied wrongdoing but terminated or modified several programs at issue. DOJ press release
DOJ establishes National Fraud Enforcement Division. Acting Attorney General Blanche announced the creation of the National Fraud Enforcement Division (NFED), a new litigating division within the Department of Justice focused on consolidating and expanding federal fraud prosecution capacity. The division signals an institutional commitment to centralized fraud enforcement across sectors. Latham & Watkins analysis
California AG charges 21 in $267 million hospice fraud ring. California Attorney General Rob Bonta announced the dismantling of a Los Angeles-based hospice fraud scheme that allegedly defrauded Medi-Cal of $267 million. Prosecutors say defendants purchased stolen identities from the dark web, enrolled non-California residents in Medi-Cal, and billed for fabricated hospice services through 14 shell companies. Five arrests were made; investigators seized two firearms and over $757,000 in cash. Sierra Sun Times
Corporate & Regulatory
EPA proposes rollback of coal ash cleanup regulations. The Environmental Protection Agency published a proposed rule on April 9 that would significantly weaken federal coal ash regulations, exempting hundreds of coal ash disposal sites from oversight and removing cleanup requirements for both operating and former coal power plants. Environmental groups have signaled legal challenges. Earthjustice
Treasury proposes GENIUS Act rule targeting stablecoin illicit finance. On April 8, the Treasury Department published a proposed rule to implement the GENIUS Act, establishing anti-money laundering and counter-terrorism financing requirements for stablecoin issuers. The rule would bring digital asset payment instruments under a regulatory framework aligned with existing Bank Secrecy Act obligations. ABA Banking Journal
International
OFAC lifts sanctions on Venezuela acting president Delcy Rodríguez. The Treasury Department removed Delcy Eloína Rodríguez Gómez, Venezuela’s acting president and former vice president, from the Specially Designated Nationals list effective April 1. Rodríguez had been designated since September 2018 as a member of former President Maduro’s inner circle. The White House said the decision reflects progress in bilateral efforts toward stability and political reconciliation. OFAC Recent Actions
Courts
Federal judge rejects Oklahoma-Tyson poultry pollution settlement. The U.S. District Court for the Northern District of Oklahoma rejected the state’s negotiated settlement with four poultry companies in the long-running State of Oklahoma v. Tyson Foods litigation over chicken litter contamination in the Illinois River Watershed. The ruling raises new economic risk for agricultural operations throughout the watershed and casts doubt on nutrient management plans as a regulatory compliance tool. Agriculture of America
Worth Watching
Iran ceasefire talks resume in Pakistan. VP Vance traveled to Pakistan on Friday for high-stakes negotiations with Iranian officials as the fragile ceasefire remains under strain. Iran has refused to reopen the Strait of Hormuz and is demanding a Lebanon ceasefire and release of blocked assets as preconditions. Israel and Hezbollah exchanged strikes overnight, and Kuwait was targeted by drone attacks.
DOJ’s new fraud division invites scrutiny. The newly announced National Fraud Enforcement Division consolidates prosecutorial authority in ways that could reshape how federal fraud cases are initiated and managed. Watch for early case filings that signal enforcement priorities under the new structure.