COLUMBIA, S.C. — On Thursday, July 31st, over 50 officials from seven southeastern states convened to sign a data-sharing agreement with the Department of Justice (DOJ) aimed at combating fraud. The collaboration has already led to the uncovering of approximately $350 million in alleged fraud across these states.

Under the Memorandum of Understanding signed at the roundtable, the states will provide the DOJ access to publicly available corporate registration and public benefits payment data held by state agencies. Officials said this data sharing will help the DOJ identify fraud patterns more quickly.

Colin McDonald, assistant attorney general for the DOJ’s National Fraud Enforcement Division, met with dozens of state officials before a press conference to discuss their efforts and how federal support could be enhanced. He stated, “To state partners here and across the country is this: the fraud division and our U.S. attorneys’ offices are ready to help you scale your efforts to strengthen your cases and deliver results for the taxpayers of America.”

South Carolina officials announced they uncovered the largest Medicaid fraud in the state's history, crediting a partnership with North Carolina’s attorney general’s office, led by a Democrat, for cracking the case. One state official said, “We would not have been able to uncover the largest Medicaid fraud in South Carolina history” without this cooperation.

Additionally, DOJ representative Wilson highlighted the department’s instrumental role in enabling states nationwide to coordinate their anti-fraud efforts.

Heith Janke, FBI assistant director, noted that the previous year the FBI received reports of $21 billion in fraud, underscoring the scale of the issue.

This roundtable and data-sharing agreement mark a significant step toward enhanced inter-state collaboration in fraud detection and prosecution.

Sources