DOJ seizes $1.4B in stolen COVID relief funds.
Justice Department Seizes $1.4 Billion in Stolen COVID-19 Relief Funds
The U.S. Justice Department announced on Wednesday that it has successfully seized over $1.4 billion in COVID-19 relief funds that were stolen by criminals. Additionally, more than 3,000 defendants have been charged with federal crimes across the country.
Nationwide Enforcement Action Against COVID Fraud
The Justice Department revealed the outcomes of a nationwide enforcement action aimed at combating coronavirus fraud. This includes federal criminal charges against 371 defendants, accused of offenses related to over $836 million in alleged COVID fraud.
“This latest action, involving over 300 defendants and over $830 million in alleged COVID-19 fraud, should send a clear message: the COVID-19 public health emergency may have ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over,” stated U.S. Attorney General Merrick Garland.
During the operation, a total of 119 defendants either pleaded guilty or were convicted at trial, as reported by the Justice Department.
Continued Efforts to Investigate Fraud
The United States is actively investigating numerous fraud cases related to government assistance programs. In May 2021, U.S. Attorney General Garland established a COVID fraud enforcement task force.
Last year, federal prosecutor Kevin Chambers was appointed by the Justice Department to lead the investigation into alleged fraud schemes targeting pandemic assistance programs.
Concerns Over Stolen Relief Funds
A federal watchdog revealed that over $200 billion from the U.S. government’s COVID-19 relief programs were potentially stolen. The report also highlighted that the U.S. Small Business Administration (SBA) had weakened its controls in a rush to distribute the funds.
In September 2022, the inspector general for the U.S. Labor Department estimated that fraudsters likely stole $45.6 billion from the country’s unemployment insurance program during the coronavirus outbreak. They employed tactics such as using Social Security numbers of deceased individuals.
Earlier this year, a separate watchdog report suggested that the U.S. government may have awarded approximately $5.4 billion in COVID-19 aid to individuals with questionable Social Security numbers.
(Reporting by Kanishka Singh in Washington; Editing by Stephen Coates)
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