Americans Have Lost $160+ Million to COVID-19 Scams

Weekly Newsletter | October 30, 2020 | Subscribe

Whistleblower Tribute Video

Today, we're concluding our 20th Annual Taxpayers Against Fraud Education Fund Conference and Awards Ceremony.

And we wanted to share this whistleblower tribute video presented on the final day of our conference.

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Security Magazine: COVID-19-related scams have cost Americans more than $160 million Since the start of 2020, Americans have lost more than $160 million. Americans have also reported over 118,000 fraud cases to the Federal Trade Commission with 49.2% of those reports indicating a financial loss.

Dept. of Justice: R.I. Man Admits to Fraudulently Seeking $4.7 Million in COVID-19 Stimulus Loans A Rhode Island man who is currently serving a federal supervised release after being convicted and incarcerated for robbing four banks admitted to fraudulently seeking more than $4.7 million in Paycheck Protection Program forgivable loans. He admitted to applying and receiving nearly $600,000 in PPP loans that he claimed were to be used to pay employees for a Fall River, MA, businesses he operated, “Top Notch Tile.”

The Detroit News: Feds say COVID-19 fraudsters bragged about big-ticket items on Instagram A Detroit couple allegedly received $138,000 in COVID-19 pandemic aid and spent it on luxury items, including a new Mercedes-Benz, trips and custom jewelry then posted about it on social media. The couple were charged with wire fraud, and are accused of partnering with a contract employee of Michigan's Unemployment Insurance Agency in a broader $2.5 million scheme involving money for pandemic assistance.

AP: Software developer pleads guilty to COVID-19 fraud scheme A software developer admitted to submitting four fake applications to three different lenders for forgivable loans under the Paycheck Protection Program, and he used fake entities for which he created fake payroll and tax records. Additionally, he allegedly faked applications to two non-profit organizations that give grants to restaurant workers suffering economic hardship due to the pandemic and also submitted a fraudulent application to a multinational technology company headquartered in Seattle. He received $5,000; however, he admitted to attempting to defraud the various COVID-19 relief programs of more than $550,000.

NPR: Billions In COVID-19 Relief Loans May Have Been Handed Out To Scammers, Report Says According to the report from Office of SBA Inspector General Michael Ware, officials were overwhelmed with reports for disaster aid starting in March that they were unable to properly vet the applicants. The Small Business Administration may have handed out billions of dollars in loans to businesses that falsely claimed to have been damaged by the coronavirus lockdowns.

Case Settlements & Opinions


Business Market Insights: US Healthcare Fraud Analytics Market to 2027 This report looks at healthcare fraud estimates until 2027 and finds that it is susceptible to wide range of frauds that will lead to financial losses. In January of 2019, DOJ announced that around $2.5 billion of the total US$2.8 billion were recovered under the False Claims Act in the US. Additionally, the National Health Care Anti-Fraud Association (NHCAA) estimated that every year, losses due to healthcare frauds are in the tens of billions of dollars.

Dept. of Justice: Guild Mortgage Company to Pay $24.9 Million to Resolve Allegations it Knowingly Caused False Claims for Federal Mortgage insurance Guild Mortgage Company has agreed to pay $24.9 million to resolve allegations that it violated the False Claims Act by knowingly breaching material program requirements when it originated and underwrote mortgages insured by HUD’s Federal Housing Administration.

38 views0 comments