Federal prosecutors are actively working to recover billions of dollars in pandemic aid that was falsely obtained through government programs designed to support the economy during Covid shutdowns. In order to uncover cases of pandemic fraud, prosecutors in some districts are investigating individuals suspected of violent crimes, while others are creating specialized teams to dismantle complex fraud schemes. The federal government is determined to uncover the massive number of fraudulent claims that were submitted and approved during the pandemic, although the exact amount stolen is unknown. The Small Business Administration’s inspector general estimates that more than $200 billion, or 17% of the $1.2 trillion in pandemic loans that were distributed, may have gone to potentially fraudulent actors. So far, $30 billion has been seized or returned to the agency.
While thousands of investigations are still ongoing, it has proved challenging to identify and prosecute those responsible for defrauding pandemic-relief programs due to the sheer volume of fraud. As of now, the Justice Department has charged over 2,230 defendants in relation to pandemic fraud schemes, with over 550 convictions related to fraud involving funds from the Paycheck Protection Program and Economic Injury Disaster Loan program. Each U.S. attorney’s office has the freedom to determine the most effective strategy to catch fraudsters.
In Mississippi’s Northern District, officials are collaborating with local authorities to review lists of pandemic loan recipients, allowing prosecutors to identify cases that may have been missed. This approach has resulted in the discovery of more cases than the district can handle, leading to the pursuit of civil cases for smaller loans. In Maryland, officials are screening suspects of violent crimes and illegal possession of firearms for potential pandemic fraud. This screening process has enabled officials to pursue investigations they would not have otherwise been able to handle.
As part of their efforts to combat fraud, the Justice Department has established “strike force teams” in multiple U.S. attorney’s offices. These teams employ a data-driven approach, leveraging analysts from various federal agencies to identify large-scale fraud schemes. The strike force will help investigate harder-to-detect cases, including those involving international fraud rings.
In addition to U.S. attorney’s offices, inspectors general in over 40 offices are also working on pandemic fraud investigations, with support from agencies such as the FBI, Secret Service, Postal Inspection Service, Homeland Security Investigations, and IRS Criminal Investigation. The country’s special inspector general for pandemic recovery anticipates uncovering new leads as borrowers default on pandemic loans, which could indicate potential fraud. The Justice Department’s inspector general expects prosecutors to pursue more lower-dollar fraud cases in the coming years.
The federal government is determined to recoup funds lost to pandemic fraud and is actively working to dismantle fraud schemes and bring perpetrators to justice.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
