The House Select Subcommittee on the Coronavirus Crisis, chaired by Rep. James E. Clyburn, released the final report on its investigation into the use and distribution of $5 trillion in federal pandemic-related aid, concluding that that there has been approximately $86 billion in potential fraud identified against the Economic Injury Disaster Loan (EIDL) program alone. In the 200-page report, which was released December 9, 2022, the Select Committee blamed numerous actors for the alleged fraud, including financial technology (fintech) companies, government officials and Paycheck Protection Program lenders.
The Justice Department has announced the first-ever False Claims Act settlement with a lender to resolve allegations related to processing a Paycheck Protection Program loan on behalf of an ineligible customer. This settlement occurred shortly after the Justice Department announced the creation of three new Strike Force teams to enhance its existing efforts to combat and prevent COVID-19 related fraud. This groundbreaking settlement and DOJ’s decision to create additional task forces signals that the government intends to intensify investigations into alleged COVID-19 related fraud, including the roles played by lenders, government officials and fintech companies.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, provided emergency financial assistance through the PPP in the form of forgivable loans to businesses to...
Over the last year, beyond traditional healthcare and federal procurement matters, the government has pursued federal False Claims Act (FCA) investigations and enforcement across high-risk areas, i...