Key Takeaways:
The DOJ fraud section charged 265 people in 2025 and tracked $16 billion in intended fraud losses, a record and more than double 2024.
A USPTO patent examiner will pay $500,000 for reviewing applications at companies where she held major financial stakes.
Governor Tim Walz and AG Keith Ellison will testify under oath March 4 on an estimated $9 billion in Minnesota welfare fraud.
Three things happened this week that show the federal government is serious about fraud enforcement in every direction.
On Tuesday, the DOJ announced patent examiner Daxin Wu will pay $500,000 to settle allegations she reviewed patent applications for companies where she held between $140,000 and $900,000 in stock. She examined at least nine applications with direct financial conflicts. A 2024 Inspector General report estimated roughly 30% of USPTO examiners may have similar undetected conflicts.
On Wednesday, Colin McDonald, Trump's pick to lead the new National Fraud Enforcement Division, testified before Congress and said he would pursue prosecutions "without fear or favor." The DOJ's fraud section charged 265 people in 2025 and tracked $16 billion in intended fraud losses, more than double the prior year.
The same day, Chairman Comer announced Governor Tim Walz and Attorney General Keith Ellison will testify under oath on March 4 about an estimated $9 billion in welfare fraud across Minnesota's social services. 98 defendants have been charged. 64 convicted. Federal prosecutors estimate half of all funds across 14 state programs since 2018 may have been stolen.
The pattern across all three cases is the same. Money moved through systems that rely on human discretion, manual oversight, and institutional trust. In each case, the system failed because someone had the authority to approve something they should not have.
People Also Ask
Q: How much fraud did the DOJ track in 2025? A: The DOJ fraud section tracked $16 billion in intended fraud losses and charged 265 people, both records and more than double 2024 levels.
Q: What happened with the USPTO patent examiner? A: Examiner Daxin Wu will pay $500,000 for reviewing patent applications at companies where she owned significant stock, a direct financial conflict of interest.
Q: When do Walz and Ellison testify on Minnesota fraud? A: March 4, 2026, before the House Oversight Committee. The hearing covers an estimated $9 billion in welfare fraud across Minnesota's social services programs.
Q: How widespread are USPTO conflicts of interest? A: A 2024 Inspector General report estimated that roughly 30% of patent examiners may have similar undetected financial conflicts.