The Department of Justice is charging 474 people with using fraud schemes related to the COVID-19 pandemic to steal more than $569 million from the government.
DOJ says it has charged 474 defendants with fraud schemes tied to the COVID-19 pandemic since the CARES Act passed 1 year ago today. The total amount of money fraudsters tried to obtain in these cases is more than $569 million, department says.
— Ryan Lucas (@relucasz) March 26, 2021
“The Department of Justice has led an historic enforcement initiative to detect and disrupt COVID-19 related fraud schemes,” Attorney General Merrick B. Garland said in a statement. “The impact of the department’s work to date sends a clear and unmistakable message to those who would exploit a national emergency to steal taxpayer-funded resources from vulnerable individuals and small businesses.”
He continued, “We are committed to protecting the American people and the integrity of the critical lifelines provided for them by Congress, and we will continue to respond to this challenge.”
Acting Assistant Attorney General Nicholas L. McQuaid of the department’s Criminal Division warned those using the pandemic to steal money, “No matter where you are or who you are, we will find you and prosecute you to the fullest extent of the law.”
At least 120 people have been charged with fraud related to the Paycheck Protection Program (PPP).
“Most charged defendants have misappropriated loan proceeds for prohibited purposes, such as the purchase of houses, cars, jewelry, and other luxury items,” the department reported.
The department has seized $580 million from fraudulent applications related to Economic Injury Disaster Loans (EIDL) to date.
Since the beginning of the pandemic, over 140 defendants have been charged and arrested for Unemployment Insurance (UI) fraud.
“We will not allow American citizens or the critical benefits programs that have been created to assist them to be preyed upon by those seeking to take advantage of this national emergency,” acting Assistant Attorney General Brian M. Boynton of the department’s Civil Division said.
He added, “We are proud to work with our law enforcement partners to hold wrongdoers accountable and to safeguard taxpayer funds.”
The Senate passed the $2 trillion CARES Act in March 2020 and approved Biden’s $1.9 trillion coronavirus relief bill earlier this month.