On March 26, 2021, the DOJ issued a Press Release announcing an update on criminal and civil enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program and Unemployment Insurance (UI) programs.
As of today, the DOJ has publicly charged 474 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to obtain $569 million from the U.S. government and unsuspecting individuals through fraud across the country.
The DOJ is also using numerous civil tools to address fraud in connection with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the False Claims Act (FCA), and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The FCA is the government’s primary civil tool to redress false claims for federal funds and property involving a multitude of government operations and function. The FCA permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. These whistleblower complaints have been on the rise as a result of government programs disbursing federal relief in connection with the COVID-19 pandemic.