Congressional Committee Suspects Over $1 Billion in COVID Fraud

Weekly Newsletter | September 4, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Fox 9: Congressional investigation finds over $1B in suspected COVID-19 aid fraud According to a preliminary staff report released by the Select Subcommittee on the Coronavirus Crisis on the Paycheck Protection Program (PPP), billions of dollars in loans intended to help small businesses amid the COVID-19 pandemic may have been diverted to fraud, waste, and abuse. According to the findings, 10,856 loans were identified in which the borrower received multiple PPP loans, but only 65 would be “subject to additional scrutiny based on the Administration’s stated plans to audit loans over $2 million.”

The New York Times: Spotting $62 Million in Alleged P.P.P. Fraud Was the Easy Part The Justice Department has made at least 41 criminal complaints in federal court against nearly 60 people who allegedly took a collective amount of $62 million from the Paycheck Protection Program through fraudulent measures. However, this is the “tiniest piece of the tip of the iceberg” as the Small Business Administration’s fraud hotline, which received fewer than 800 calls last year, has already had 42,000 reports related to COVID-19.

The Detroit News: Feds accuse Novi man of $3M COVID-19 scheme A Detroit man was charged with fraudulently obtaining more than $3.1 million in federal COVID-19 aid. According to the criminal complaint, he sent loan applications to banks that contained fraudulent information. Bank officials flagged nineteen loan applications that sought $3,118,442 in pandemic assistance, including money from the Paycheck Protection Program. The same man also has a previous criminal record including convictions for second-degree murder and domestic violence.

CBS Tampa Bay: Florida Men Charged with Using 700 Synthetic Identities to Exploit Covid-19 Relief Programs Miami federal prosecutors charged two Florida men with bank fraud conspiracy for allegedly using synthetic identities to commit crimes, including defrauding banks and stealing over $3 million from COVID-19 relief programs. From about April through July of 2020, members of the conspiracy allegedly utilized the synthetic identities and associated shell companies and accounts to fraudulently apply for the Paycheck Protection Program (PPP).

WXII: Greensboro man pleads guilty to COVID-19 relief fraud schemes A North Carolina man pleaded guilty Monday to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic. He admitted to creating a “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC where he promised small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200.

Case Settlements & Opinions


Dept. of Justice: CDM Smith and CDM Federal Programs Agrees to $5.6 Million Settlement

CDM Smith Inc. and CDM Federal Programs Corporation have agreed to pay approximately $5.6 million to settle False Claims Act allegations and other civil claims related to inaccurate certified cost or pricing data submitted to the U.S. Navy. The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.

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