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 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
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
One of the most attractive aspects of the Paycheck Protection Program loans that were included in the 2020 Coronavirus Aid, Relief and Economic Security Act (CARES Act) was an employer’s ability to apply to have its loan...more
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 Small Business Administration is conducting inquiries into some of the loans obtained through the Paycheck Protection Program that seek details about a company’s financial status not only before the loan was requested,...more
Paycheck Protection Program (PPP) loans were designed to help small businesses cover explicit allowable expenses during the COVID-19 pandemic. There are various eligibility requirements that businesses must satisfy before...more
4/22/2021
/ Business Expenses ,
CARES Act ,
China ,
Civil Liability ,
Coronavirus/COVID-19 ,
Full-Time Employees ,
Good Faith ,
Independent Contractors ,
Loan Forgiveness ,
Paycheck Protection Program (PPP) ,
Payroll Expenses ,
SBA
If the Biden administration's early moves are any indicator, its Department of Justice (DOJ) is poised to devote more time and energy to the prosecution of white-collar crime than it did under the Trump administration, when...more
3/12/2021
/ Biden Administration ,
CARES Act ,
Coronavirus/COVID-19 ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Healthcare Fraud ,
Paycheck Protection Program (PPP) ,
SBA ,
Trump Administration ,
White Collar Crimes
Businesses with connections to China should proceed with caution when deciding whether to apply for funds from round two of the federal Paycheck Protection Program. New restrictions limit the eligibility of companies with...more
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
Scrutiny of federal relief funds is expected to be intense as evidenced by the decisions of two prominent companies to quickly return loans they had secured under the Paycheck Protection Program (PPP) in the wake of criticism...more