DOJ Wants to Hear From Data Miner Whistleblowers

By the Constantine Cannon Whistleblower Team

On April 30, the Department of Justice (DOJ) announced a new initiative — called the Fraud Oversight through Careful Use of Statistics (FOCUS) initiative — targeting data miner whistleblowers.[1]  It follows what DOJ describes as a “surge” in False Claims Act cases “driven by companies or individuals who analyze publicly available government data for potential signals of fraud.”

Has There Been An Increase in False Claims Act Cases Filed By Data Miners?

In announcing the new initiative, DOJ put some numbers behind this rise in whistleblower activity, noting the increasing number of qui tam actions brought by whistleblowers under the False Claims Act.  DOJ noted the record number of actions whistleblowers brought in 2024 (980) was “dwarfed” by the nearly 1,300 actions they filed in 2025, which itself has been outpaced by the 780 qui tam actions whistleblowers already have filed this year.  According to DOJ, data miners filed roughly half these actions since 2024.[2]

The ready use of artificial intelligence is no doubt contributing to the swell of data miner whistleblowers.  And while the Government is hoping to encourage data miners to put their analytic sleuthing skills to use, it is very mindful that not all data miners are alike.  It thus hopes to use its FOCUS initiative to prioritize data miners who through their “sophisticated technological capabilities” are the most likely to identify potential fraud that would otherwise go undetected.

As DOJ Civil Chief Brett Shumate explained it, “Sophisticated data analytics have become an increasingly important means of identifying fraud,” and the FOCUS initiative “reflects our commitment to ensuring that [DOJ] is engaging with the strongest and most effective partners in the war against fraud.”

What Type of Data Miners is DOJ Targeting?

DOJ Deputy Civil Chief Brenna Jenny added that the agency’s focus is on “data miners who believe they have developed particularly effective tools for detecting fraud against the government.”  She underscored how this newest breed of whistleblower “should be prepared to explain what differentiates their approach, how they validate their findings, and why their methodology provides a reliable basis for identifying high-quality, actionable False Claims Act matters.”

To help potential data miner whistleblowers and their counsel target their efforts, DOJ provided the following guidance:

• • Identify a clear and material violation of a statutory, regulatory, or contractual obligation and provide a cogent investigative roadmap of facts to corroborate, witnesses to interview, and evidence to obtain.

• • Follow the heightened pleading standards of Rule 9(b), which require alleging with particularity the circumstances constituting and surrounding the claimed fraud.

• • Explain how the data, in combination with other evidence, supports both falsity and scienter (intentional misconduct) and cannot be explained by legitimate or well-intentioned behavior.

• • Take steps to understand and address program eligibility requirements and the relevant regulatory framework, and ideally partner with those who have the relevant industry background.
  • Meet with DOJ before filing the qui tam complaint to preview the matter, the whistleblower’s data mining capabilities, and how their data signals reliably correlate to fraud.

The bottom line for DOJ is that in recognizing data miners do not provide insider information, it wants to hear only from those that “provide valuable leads through high-quality, reliable, and predictive data analyses and signals and a thorough understanding of the relevant legal obligations.”

Is DOJ’s FOCUS Initiative An Open Invitation For Data Miner Whistleblowers?

According to Constantine Cannon whistleblower partner Gordon Schnell, “The DOJ’s new FOCUS initiative is an open invitation for data miner whistleblowers to bring False Claims Act cases.”  Schnell says, “DOJ clearly recognizes the value of AI and the potential for data and analytics experts to tap into this resource to help the Government sniff out fraud.”

“At the same time,” Schnell cautions, “not all data miners are alike and DOJ only wants to hear from those that truly have something to offer that DOJ can’t replicate or uncover on its own.”  Schnell points to his own firm’s experience and the ever-increasing number of data miner intakes the firm is receiving.  “While we seriously consider all of them,” he says, “we agree to represent only those whose expertise and analytics are at the highest level and unequivocally demonstrate fraud.”

Constantine Cannon Has Substantial Experience Representing False Claims Act Whistleblowers

Constantine Cannon has substantial experience representing False Claims Act whistleblowers, including data mining whistleblowers whose industry expertise and analysis serve as the underlying basis of the alleged fraud.  One of those cases involved a whistleblower who, through his background and expert analysis, alleged widespread fraud and collusion among the country’s largest banks in the tax-exempt municipal bond space.  It resulted in a record $70 million settlement under the Illinois False Claims Act, with analogous actions in other states still pending.

If you would like to learn more about that case, Constantine Cannon’s long list of False Claims Act successes, or what it means to be a whistleblower more broadly, please do not hesitate to contact us.  We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.

Sources:

[1]  See https://www.justice.gov/opa/pr/civil-division-announces-focus-initiative-data-miners-filing-qui-tam-complaints.

[2]  See https://www.justice.gov/opa/media/1438871/dl.

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