DOJ Has Brought Charges Over $8 Billion In Alleged Fraud From Covid Relief

Topline

The Department of Justice said Thursday it had brought civil and criminal enforcement actions involving $8 billion worth of alleged fraud stemming from Congress’ $2 trillion coronavirus relief bill passed in March 2020—and appointed a director of Covid-19 fraud enforcement.

A view of the lecture before US Attorney General William Barr holds a press conference about the … [+] release of the Mueller Report at the Department of Justice April 18, 2019, in Washington, DC. – The final report from Special Counsel Robert Mueller’s Russia investigation on Thursday could leave much of the public unsatisfied because it could be heavily redacted, stripped of significant evidence and testimony that the investigators gathered.Attorney General Bill Barr made clear he will edit out large parts of Mueller’s 400-page final report on his investigation of President Donald Trump and Russian election meddling. (Photo by Brendan Smialowski / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)

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Key Facts

Associate Deputy Attorney General Kevin Chambers will lead the Covid-19 Fraud Enforcement Task Force, which was established in May 2021, the DOJ said in a release.

About $6 billion of the fraud claims stem from hundreds of civil investigations involving loans for fictitious companies or unemployment benefits claimed with stolen identities.

President Joe Biden promised this appointment in his State of the Union address last week: “We’re going after the criminals who stole billions in relief money meant for small businesses and millions of Americans,” he said.

Key Background

In the past two years, individuals and large-scale criminal enterprises have made fraudulent claims involving several loan programs set up by the relief bill, including the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan Program (EIDL) and enhanced unemployment insurance programs. Last month, three men received sentences ranging from 60 to 72 months in prison for a $2.7 million Covid-19 relief fraud scheme in which they recruited people to apply for fraudulent PPP and EIDL Program loans and submit false tax and bank records before using the loans for cash withdrawals and luxury purchases.

What We Don’t Know

The total amount of fraud. Tens of billions of dollars worth of claims are still under review.

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Source: https://www.forbes.com/sites/masonbissada/2022/03/10/doj-has-brought-charges-over-8-billion-in-alleged-fraud-from-covid-relief/