In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act providing $2.2 trillion in economic relief to Americans struggling in the wake of the COVID-19 pandemic. Of course, fraudsters immediately saw this relief money as an opportunity to scheme and line their own pockets.

The U.S. Department of Justice (DOJ) quickly saw the need for dedicated enforcement of criminal and civil actions in the area of COVID-19 relief fraud. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force.

As a result of the Task Force enforcement efforts, the DOJ has issued criminal charges to more than 1,000 defendants with alleged losses exceeding $1.2 billion. It has also investigated more than 240 civil cases involving more than 1,800 individuals and entities for alleged fraud totaling more than $6 billion.

The Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Unemployment Insurance (UI) were immediately targets for individuals and entities seeking to exploit the worldwide pandemic for their own personal gain. The DOJ announced it has charged 500 defendants in more than 340 cases with alleged losses of more than $700 million related to PPP and EIDL fraud.

Through September 2021, the government had $860 million in federal funds appropriated for Unemployment Insurance (UI) benefits. DOJ investigations revealed that international organized crime groups were using stolen identities to file for UI benefits and charged and arrested 430 defendants for federal UI fraud offenses.

All of these crimes and fraud schemes resulted in taxpayer dollars being stolen from Americans who legitimately needed it during the unprecedented challenging economic time caused by the pandemic. Hardworking small business owners needed financial support, and many were unable to get the funding they needed.

Whistleblowers have been crucial in combating COVID-19 relief fraud. Employees, auditors, and other individuals have come forward with information about COVID-19 relief fraud. The False Claims Act allows whistleblowers with information about fraud to file a case on behalf of the government. Whistleblowers can receive a portion of the money recovered as a reward for their role in the prosecution of the case. If you have information about CARES or PPP fraud, you should contact an experienced whistleblower attorney to learn more about your rights and protections.

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With more than 30 years of experience in Qui Tam cases, the attorneys on Baron & Budd’s whistleblower representation team have represented clients in government fraud cases returning over $6.0 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of fraud involving COVID-19 relief.

Please call (866) 845-2164 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower.  Please understand that contacting us does not mean that you have established an attorney-client relationship with Baron & Budd, P.C.