New state laws aim to crack down on the historic wave of fraud that robbed New Yorkers of billions in pandemic aid and stole millions from countless people tangled in COVID-19 schemes.
The measures boost rewards for fraud whistleblowers and increase penalties for fraud committed during emergencies. Gov. Kathy Hochul on Wednesday signed the laws approved by state lawmakers earlier this year.
Lawmakers' focus on reducing fraud comes as USA TODAY Network reported recently on the army of fraudsters who ripped off about $400 million in COVID-19 aid and unemployment benefits intended for New Yorkers.
"We are sending a clear message: New York has zero tolerance for fraud, especially in our most critical times of need," Hochul said in a statement. The new laws, she added, will "assist with recovery efforts while cracking down on bad actors and their deceitful attempts to turn a profit during emergencies."
Currently, a successful whistleblower in New York will receive between 15% and 30% of the proceeds recovered from fraud cases. That includes cases where private citizens file civil lawsuits on behalf of the government to help recover defrauded money.
Read the investigation: $400M of taxpayer money in NY COVID aid was stolen. That is just the tip of the iceberg
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