Trump’s Justice Nominee Faces Questions on New Anti-Fraud Division

Colin McDonald, nominated to head a newly created Justice Department fraud division, pledged to prosecute cases fairly during his confirmation hearing. The proposed division has sparked concerns about political interference, especially after Vice President Vance was tasked with overseeing a "war on fraud" targeting Minnesota's Somali community.

WASHINGTON — The nominee selected to oversee a newly established Justice Department fraud unit promised Wednesday to conduct investigations “without fear or favor” amid growing concerns about potential political interference in the division’s operations.

Colin McDonald’s appointment to head the proposed National Fraud Enforcement Division has drawn scrutiny because fraud cases are already handled by the department’s existing Criminal Division, and because the White House has indicated it will play an unprecedented role in supervising the new unit’s activities.

The nomination comes as the Trump administration has intensified focus on alleged fraud schemes in Minnesota. During Tuesday’s State of the Union address, President Trump announced that Vice President JD Vance would spearhead the administration’s “war on fraud,” making accusations that Minnesota’s Somali community members have “pillaged” billions in taxpayer funds.

When questioned during Wednesday’s confirmation hearing about whether he would comply with presidential directives to launch specific investigations, McDonald avoided giving a direct response. The experienced prosecutor, who currently serves in Deputy Attorney General Todd Blanche’s office, stated only that he bases decisions on evidence and legal standards.

“The vision that we have is a division that is large enough where no fraud is too big, and no fraud is too small, so that we can reach all actors within the chain of criminal culpability and no one more than that,” McDonald testified. “Those are the ones that we are going to be looking after, investigating and following the facts — without fear or favor.”

Vance’s January announcement that the new fraud division chief would answer directly to the White House surprised many Justice Department officials, even within an administration that has dismantled traditional barriers between the department and executive branch.

The administration has since modified its position, stating that McDonald would report to the deputy attorney general like other division leaders, though questions remain about Vance’s specific involvement in overseeing cases and prosecutions.

Federal investigators have been examining extensive fraud allegations in Minnesota for several years, with dozens of defendants — primarily of Somali heritage — facing charges under both the Biden and Trump administrations. The alleged fraud gained heightened attention during the current administration’s immigration enforcement operations in Minneapolis. A federal prosecutor has estimated that potentially half of approximately $18 billion in federal program funding distributed in Minnesota since 2018 may have been fraudulently obtained.

If confirmed, McDonald may immediately encounter staffing challenges as the Minnesota U.S. attorney’s office has experienced mass resignations following controversial fatal shootings of civilians by federal agents during recent immigration raids. Joseph Thompson, the prosecutor overseeing the extensive Minnesota fraud investigation, is among those who have resigned amid tensions over the Justice Department’s handling of the shootings.

Skeptics have questioned the necessity of creating the new division when the department’s Criminal Division already handles fraud prosecutions effectively. The existing fraud section filed charges against 265 individuals last year, representing a more than 10% increase from the previous year. These cases involved over $16 billion in attempted fraud losses, setting a record for the section and more than doubling 2024’s total.

Despite these achievements, McDonald told committee members that significant additional work remains “to ensure that our taxpayer funded programs are free of fraud.”

“The problem is massive,” McDonald stated. “And so President Trump and the attorney general were right to identify this as a place where we needed to put significantly more focus.”