In its first enforcement action related to COVID-19 government aid programs, the Federal Reserve Board recently announced that it has fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program...more
2/9/2023
/ Borrowers ,
CARES Act ,
Coronavirus/COVID-19 ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Federal Reserve ,
Fraud ,
Lenders ,
Loans ,
Paycheck Protection Program (PPP)
The House Select Subcommittee on the Coronavirus Crisis, chaired by Rep. James E. Clyburn, released the final report on its investigation into the use and distribution of $5 trillion in federal pandemic-related aid,...more
The Justice Department recently announced new charges, convictions and sentencings in its ongoing initiative to target pandemic-related fraud, emphasizing the government’s commitment to identify and hold accountable those who...more
The Justice Department has announced a civil settlement of the first Paycheck Protection Program (PPP) fraud whistleblower case in which the government intervened. This milestone should remind PPP borrowers they should...more
The Justice Department has announced the first-ever False Claims Act settlement with a lender to resolve allegations related to processing a Paycheck Protection Program loan on behalf of an ineligible customer. This...more
9/21/2022
/ CARES Act ,
Coronavirus/COVID-19 ,
Criminal Conspiracy ,
Cyber Crimes ,
Department of Homeland Security (DHS) ,
Department of Justice (DOJ) ,
DOJ Strike Force ,
False Claims Act (FCA) ,
FBI ,
Fraud ,
Lenders ,
Money Laundering ,
Paycheck Protection Program (PPP) ,
Popular ,
SBA
As part of its ongoing effort to crack down on health care-related COVID-19 fraud, the U.S. Justice Department has launched a nationwide coordinated law enforcement action that recently led to criminal charges against 21...more
5/19/2022
/ CARES Act ,
Coronavirus/COVID-19 ,
Department of Justice (DOJ) ,
Diagnostic Tests ,
Enforcement Actions ,
False Billing ,
Fraud ,
Healthcare ,
Kickbacks ,
Medicare ,
Paycheck Protection Program (PPP)
Vanessa R. Waldref, the U.S. Attorney for the Eastern District of Washington, recently announced the creation of a new interagency COVID-19 Fraud Strike Force to combat alleged fraud arising from the pandemic. One of its...more
With the arrest of the CEO of a New Jersey non-bank lender, the U.S. Department of Justice appears to have entered a new, more aggressive phase of its scrutiny of COVID-19 related aid and alleged fraud in the administration...more
The U.S. Department of Justice has recently begun charging defendants with bank fraud in relation to Paycheck Protection Program loans as part of its continuing efforts to investigate and prosecute individuals for crimes...more
1/13/2022
/ Bank Fraud ,
CARES Act ,
Compliance ,
Coronavirus/COVID-19 ,
Department of Justice (DOJ) ,
Economic Injury Disaster Loans ,
Financial Institutions ,
Fraud ,
Paycheck Protection Program (PPP) ,
Popular ,
SBA
The U.S. Department of Justice continues to seek long prison sentences for those convicted of COVID-19 related fraud. Recently, courts have agreed with prosecutors, and have issued increasingly lengthy prison terms to those...more
The owner of a Florida jet company agreed August 26, 2021, to pay a large penalty for using government aid - which was directed to his business - on his own personal expenses.
The scheme came to light because of a...more
The U.S. Department of Justice took several victory laps this month, touting long prison sentences it has secured for COVID-19 related fraud. These prison terms send a clear message to any individual or business that...more
7/27/2021
/ Borrowers ,
CARES Act ,
Coronavirus/COVID-19 ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Economic Injury Disaster Loans ,
False Claims Act (FCA) ,
Fraud ,
Investigations ,
Money Laundering ,
Paycheck Protection Program (PPP) ,
Prison
The Department of Justice (DOJ) has intensified its already aggressive crackdown on fraud related to COVID-19, recently announcing criminal charges against a telemedicine company executive, a physician, marketers and medical...more
6/8/2021
/ CARES Act ,
Centers for Medicare & Medicaid Services (CMS) ,
Coronavirus/COVID-19 ,
Department of Health and Human Services (HHS) ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
FBI ,
Fraud ,
Healthcare ,
OIG ,
Paycheck Protection Program (PPP) ,
Personally Identifiable Information ,
Popular ,
Provider Relief Fund ,
Telemedicine ,
Virus Testing
Intensifying its crackdown on suspected fraud in pandemic relief programs, the U.S. Department of Justice has established the COVID-19 Fraud Enforcement Task Force, sending a clear message that any individual or business that...more
6/2/2021
/ CARES Act ,
Coronavirus/COVID-19 ,
Department of Justice (DOJ) ,
Department of Labor (DOL) ,
Economic Injury Disaster Loans ,
False Claims Act (FCA) ,
Federal Agency Taskforce ,
FIRREA ,
Fraud ,
Paycheck Protection Program (PPP) ,
SBA ,
U.S. Treasury ,
Unemployment Insurance ,
Whistleblowers
The Justice Department continues to intensify its crackdown on COVID-19 relief program fraud, a clear indication that any individual or business that has benefited from the government aid should expect enhanced scrutiny from...more
The Justice Department has widened its crackdown on COVID-19 fraud, announcing the first criminal case alleging misuse of federal relief funds designated for medical providers. The egregious nature of the alleged fraud and...more
2/26/2021
/ CARES Act ,
Coronavirus/COVID-19 ,
Criminal Prosecution ,
Department of Health and Human Services (HHS) ,
Department of Justice (DOJ) ,
Embezzlement ,
FBI ,
Fraud ,
Health Care Providers ,
Home Health Care ,
Investigations ,
Misuse or Misdirection of Funds ,
OIG ,
Paycheck Protection Program (PPP) ,
Provider Relief Fund
This month’s court-ordered release of Paycheck Protection Program (PPP) loan data is expected to result in intense scrutiny of the loan forgiveness process, highlighting the need for recipients to proceed with caution when...more
While the $525 billion Paycheck Protection Program (PPP), enacted as part of the CARES Act, has undoubtedly helped millions of deserving businesses survive the COVID-19 pandemic, it has also provided a unique opportunity for...more
Shortly after the Small Business Administration began accepting applications for Paycheck Protection Program (PPP) loans, two Rhode Island businessmen quickly applied for a combined $543,881 from the program. A few days...more
The Securities and Exchange Commission has signaled that it expects to see an uptick in fraudulent accounting activities in the wake of the financial downturn caused by the COVID-19 pandemic. In a similar vein, the Financial...more
Alleging that a Florida company fabricated a pair of press releases to create the false impression of having contracts to supply N95 masks to health care providers, the Securities and Exchange Commission filed suit seeking...more