Amid an ongoing federal crackdown on fraud in COVID-19 relief programs, the IRS announced that it will offer certain employers an opportunity to withdraw Employee Retention Credit (ERC) claims if they are concerned about...more
Employers should be careful before claiming the Employee Retention Credit (ERC).
Over the past several months, the Internal Revenue Service (IRS) has warned taxpayers twice about third parties who advise employers to claim...more
The Department of Justice (DOJ) announced a new voluntary self-disclosure policy February 22, 2023, that sets uniform criteria for how and when prosecutors should reward corporate cooperation in criminal investigations. The...more
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
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 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 U.S. Justice Department’s COVID-related health care fraud crackdown continues to intensify. On a single day in September 2021, the Justice Department announced criminal charges against 138 defendants in 31 federal...more
10/13/2021
/ CARES Act ,
Coronavirus/COVID-19 ,
DEA ,
Department of Health and Human Services (HHS) ,
Department of Justice (DOJ) ,
Diagnostic Tests ,
FBI ,
Fraud and Abuse ,
Health Care Providers ,
Healthcare Fraud ,
Medical Equipment ,
Nurses ,
Paycheck Protection Program (PPP) ,
Physicians ,
Provider Relief Fund ,
Telehealth ,
Telemedicine
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 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
The U.S. Justice Department announced its first civil settlement with a Paycheck Protection Program borrower alleged to have committed fraud in connection with this highly popular COVID-19 relief program. A bankruptcy online...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
A precedent-setting criminal prosecution of two California executives under the Consumer Product Safety Act is sending a strong warning to corporate boardrooms that the reporting requirements of the CPSA must be taken...more
With April 15 just around the corner, the Justice Department’s Tax Division has issued its annual public warning to would-be tax cheats. It is no secret that the Justice Department and Internal Revenue Service significantly...more
Last month we wrote about the Justice Department’s new corporate resolution policy, which is intended to curb the practice of multiple government authorities imposing separate punishments on a corporate defendant for the same...more
Deputy Attorney General Rod Rosenstein unveiled a new Justice Department policy for resolving major corporate investigations last month at a speech to the New York City Bar White Collar Crime Institute.
The new policy...more
The Justice Department’s Tax Division has recently announced a major policy shift that will invariably result in longer jail sentences for individuals convicted of failing to report their offshore bank accounts on the FBAR...more
The Internal Revenue Service has announced that the nation’s tax season will begin on Monday, January 29, 2018. As is typically the case, the annual opening of tax season is accompanied by well-publicized enforcement actions...more