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Democratic lawmakers are urging the U.S. Department of Justice and the Federal Bureau of Investigation to investigate potential fraud involving public comments submitted during a rule-making process regarding 401(k) investments. In a formal letter to Acting Attorney General Todd Blanche and FBI Director Kash Patel, U.S. Representatives Bobby Scott of Virginia and Jamie Raskin of Maryland, alongside U.S. Senator Bernie Sanders of Vermont, requested a federal probe into the reported use of unverifiable or stolen identities on comments backing a controversial Labor Department proposal.
### Congressional Investigation Demands Over 401(k) Proposal
The contested Department of Labor proposal seeks to create a regulatory “safe harbor” that encourages retirement plans to include alternative investments—such as private equity, real estate, and cryptocurrencies—within 401(k) accounts. Proponents argue the change opens lucrative asset classes to everyday workers, while critics warn it exposes retirement savings to risky, opaque financial products. Asset managers have actively targeted the approximately $13.8 trillion 401(k) market as institutional demand for alternatives slows down.
The controversy centers on the public comment period that closed on June 1, following a 60-day window published in the Federal Register. Bloomberg noted that by the closing period on June 1, approximately 47,000 comments came in, marking about double the volume of any proposal issued by the agency over the prior five years.
### Scrutiny of Supporting Public Comments
An August report by Bloomberg revealed stark anomalies within the 12,000 comments submitted in support of the rule. Unlike the roughly 30,000 submissions opposing the measure, many supportive comments lacked basic identifying details such as email addresses, city and state locations, personal signatures, or customized text.
When reporters attempted to verify the identities of individuals listed on supporting submissions, they discovered that some signers did not exist. In other instances, investigators found that the listed individuals were deceased before the rule was even proposed.
“Making false statements is a serious crime, and defendants have been convicted and sentenced to prison on that count alone,” the lawmakers wrote in their letter to the DOJ and FBI. “It is imperative to find out whether federal law was violated in this case and, if it was, ensure that those who broke the law are held accountable.”
### Broader Inquiries and Calls to Withdraw the Rule
In addition to requesting a criminal investigation from federal law enforcement, lawmakers are pushing for administrative accountability. Representative Scott and Senator Sanders sent a separate letter to Inspector General Anthony D’Epostino to encourage an independent audit of the public comment submissions.
Representative Scott also wrote directly to Acting Labor Secretary Keith Sonderling, demanding an immediate internal investigation into the integrity of the department’s comment process. Scott argued that the reporting casts serious doubt on whether the public input mechanism was compromised during the Trump administration, which issued an executive order in August 2025 requiring the Labor Department to reevaluate alternative asset guidance under the Employee Retirement Income Security Act.
“The reporting also magnifies the lack of verifiable public support for DOL’s proposed rule, representing yet another reason why it should be withdrawn,” Scott wrote in his communication to the Labor Department.
While advocacy organizations frequently utilize mass-produced form letters to mobilize supporters—a practice commonly referred to as astroturfing—investigators were unable to identify which entities generated the five distinct form letters submitted in support of the Labor Department’s alternative asset proposal. Dozens of trade groups and advocacy organizations contacted by reporters denied creating the supporting forms.
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