On the eve of the pandemic’s two-year anniversary, the U.S. Department of Justice (DOJ) released updated statistics on its efforts to combat COVID-19 related fraud and announced the appointment of a director of COVID-19 Fraud Enforcement. To date, DOJ has charged over 1,000 individuals with criminal offenses involving losses exceeding $1.1 billion; seized over $1 billion in Economic Injury Disaster Loan (EIDL) proceeds; and conducted over 240 civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.[1]
This client alert reviews the status of COVID-19 relief, explains recent enforcement trends against COVID-19 related fraud, and predicts future enforcement trends as the pandemic enters its third year. In short, the rush to implement pandemic relief created opportunities for confusion and outright fraud, driving the aggressive pursuit of COVID-19 related fraud. We predict continued scrutiny of COVID-19 relief loans, which may impact financial technology (“fintech”) firms and the healthcare industry.
Companies can prepare in two ways: (1) by remaining up to date with changes in the COVID-19 enforcement framework and (2) by investing in whistleblower policies and procedures. As to the first point, keeping apprised of how DOJ and its law enforcement partners pursue COVID-19 related fraud will enable companies to remain diligent in their compliance...
QUEENSLAND— A nurse in Australia has been formally reprimanded after admitting he submitted forged documents to Qantas (QF) in an attempt to secure a refund for a non-refundable airline ticket. Th...