WV U.S. Attorneys create Mountain State Fraud and Diversion Task Force

“If you are scheming, we will find you, charge you, and convict you,” warned U.S. Attorney Matthew L. Harvey during the launch of a new coordinated law enforcement effort in West Virginia.

The Mountain State Fraud and Diversion Task Force officially began its work today, bringing together federal, state, and local agencies to target a criminal enterprise that costs consumers up to $500 billion annually, according to a report from the U.S. Attorney’s Office.

The initiative involves U.S. Attorney Moore Capito for the southern district and Matt Harvey for the northern district, working amid a national focus following an executive order from the White House.

By joining the U.S. Attorney’s Offices for both the Northern and Southern Districts of West Virginia with other federal, state, and local law enforcement partners, officials aim to combat fraud across the state. The task force includes the West Virginia Attorney General’s Office and has conducted roundtables with local law enforcement to understand how fraud impacts specific communities.

Photo: wvnews.com

Resource gaps drive federal intervention

Moore Capito noted that many local departments are simply too strapped for personnel to handle the heavy lifting required for fraud investigations.

Capito’s office has offered to take on the “leg work” of these resource-intensive cases. This strategy is intended to free up local sheriffs and police departments to focus on their primary day-to-day duties of community safety while federal prosecutors tackle the sophisticated paper trails left by white-collar criminals.

Capito stated that while police departments have a duty to keep the public safe, the U.S. Attorney’s office has a duty to protect taxpayer dollars.

New anti-fraud task force created in West Virginia

This approach addresses a specific vulnerability in rural and small-town communities. Capito explained that while these schemes often operate across multiple states, they frequently manifest in tiny, local communities where the impact on individual residents is devastating. He noted that a coordinated, countrywide effort makes it easier to identify these multi-state schemes.

The stakes extend far beyond individual bank accounts. The Department of Justice notes that widespread fraud drives up the cost of insurance premiums, healthcare, and general consumer goods, while simultaneously draining the retirement savings of vulnerable citizens.

“Fraud isn’t one billionaire losing a million dollars to another billionaire. There’s always a West Virginia spin to it and it’s happening right under our noses,” said Capito.

Task force targets healthcare insurance and tax fraud

The task force isn’t just looking at general scams; it is specifically targeting high-stakes sectors including healthcare, insurance, and tax fraud. The Drug Enforcement Administration (DEA) is joining the effort to protect the pharmaceutical supply chain, ensuring that controlled substances are not diverted from legitimate medical use into the illicit market.

Jim Scott, Special Agent in Charge of the DEA’s Louisville Field Division, said the agency will focus on its areas of expertise to ensure the legitimate pharmaceutical supply chain remains intact.

WV U.S. Attorneys create Mountain State Fraud and Diversion Task Force — Photo: wvmetronews.com

Tax enforcement will also play a central role, with the Internal Revenue Service Criminal Investigation (IRS-CI) providing financial expertise to dismantle complex illicit financial webs. This move aligns with a broader national crackdown.

On April 7, 2026, the Department of Justice established the National Fraud Enforcement Division to support the President’s Task Force to Eliminate Fraud, a federal initiative. The matter gained national attention following the discovery of extreme fraud in Minnesota, where millions in taxpayer dollars were scammed through alleged daycares that did not exist.

Housing Assistance: HUD Office of Inspector General agents will work to ensure taxpayer-funded housing programs reach their intended recipients. Special Agent in Charge Shawn Rice with the HUD Office of Inspector General noted that the increasing complexity of fraud schemes crossing jurisdictions makes law enforcement collaboration essential to protecting communities.
Tax and Revenue: Investigating the theft of federal and state tax dollars.

Capito pointed to the aftermath of the pandemic as a turning point for the region’s investigative priorities. His office previously led the nation in recovering funds stolen through illegal Paycheck Protection Program (PPP) loans, a precursor to the current statewide push. He noted that his office has also recently tackled incidents of tax fraud.

The task force held its inaugural meeting at the FBI Criminal Justice Information Services (CJIS) facility in Clarksburg and plans to meet bi-annually to coordinate ongoing investigations and share intelligence on emerging fraud trends. During the meeting, the National Fraud Detection Center discussed investigative techniques and resources, while the National Fraud Enforcement Division shared information on analytics and asset recovery.

“West Virginians work too hard to lose money to fraudsters,” Harvey said.

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