DOJ Releases Shocking Report on Widespread COVID-19 Fraud During Pandemic — Over $400 Billion Stolen or Misused
Department of Justice (DOJ) COVID-19 Fraud Enforcement Task Force uncovered a shocking scope of fraud during the pandemic, with over $400 billion in emergency funding either stolen or misappropriated.
According to the report, fraudulent claims and schemes targeted various pandemic relief efforts, including unemployment insurance benefits, Paycheck Protection Program (PPP) loans, and Economic Injury Disaster Loans (EIDLs), among others.
These included fraudulent claims filed using stolen identities, inflated payroll expenses, doctored bank statements, and false tax forms.
The report reveals that fraudsters and swindlers may have stolen upwards of $280 billion in emergency funding, with an additional $123 billion lost or misappropriated, totaling more than $400 billion in funds intended to aid Americans during one of the most challenging times in recent history, The Politics Brief reported.
Here are some examples of COVID-19 fraud cases:
A defendant was sentenced to seven years in federal prison for committing PPP, EIDL, and UI fraud, with actual losses of more than $1 million and attempted losses of $3 million. When the government executed search warrants in the case, agents recovered stolen identifying information and ghost guns, including one modified to function as a machine gun.
A defendant pleaded guilty to submitting more than $3.5 million in fraudulent COVID-19 PPP and EIDL applications and using fraudulently obtained funds to pay for a vacation, a Mercedes-Benz, jewelry, and luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.
The SDFL indicted 17 employees of the Broward Sheriff’s Office were charged with obtaining fraudulent PPP/ EIDL loans. One former deputy was recently convicted at trial, several employees have pleaded guilty, and other defendants’ cases are still pending.
A defendant was sentenced to 71 months in prison for fraudulently obtaining PPP and EIDL loans and Shuttered Venue Operator Grants (SVOG), using the stolen funds to buy two Tesla S models, a Lamborghini, a Porsche, a diamond Audemars Piguet watch, a rose gold and diamond pendant with his company’s logo, a half-kilogram gold chain with 70 carats of diamonds, and a 1-kilogram gold chain.
A former contract detention officer at the federal Krome Detention facility who was the leader of a PPP fraud ring was sentenced to 32 months in prison for preparing fraudulent PPP applications in return for kickbacks.
A defendant was sentenced to 70 months in prison for laundering the over $2 million in fraudulently obtained PPP and EIDL loans and using the funds to gamble and to pay for cosmetic surgery, a Cadillac Escalade, and a Pomeranian puppy.
In the Southern District of Georgia, a Florida-based attorney was convicted at trial of conspiracy to fraudulently obtain almost $800,000 in Economic Injury Disaster Loans for herself and others.
In the Western District of Washington, the ringleader of a $6.8 million pandemic fraud ring was sentenced to five years in prison for fraudulently seeking funds from various relief programs.
https://www.justice.gov/opa/pr/covid-19-fraud-enforcement-task-force-releases-2024-report