DOJ Brings First Payroll Protection Program-Related Criminal Case
On May 5, the Justice Department filed charges in District Court against David A. Staveley and David Butziger in connection with loan applications made...
Rear View Mirror: Criminal Exposure for Companies that Received PPP Loans Under the CARES...
In response to complaints that large publicly-traded companies had received loans through the SBA’s Paycheck Protection Program, Treasury Secretary Mnuchin announced that companies receiving loans of more than $2 million would be subjected to a full review before being forgiven, and that the Small Business Administration would audit the business when it applied for forgiveness […]
Compliance in a Time of Crisis
The COVID-19 pandemic has companies facing unprecedented financial and operational challenges. Given these challenges, many companies may be forced to shift stretched resources and attention away from key business and operational units, including compliance. In doing so, however, past crises show the vital importance of maintaining an ethical culture and focusing resources and attention on […]
Reckoning (and a May 7 “Mulligan”) On The Horizon For Paycheck Protection Program Abusers
The Paycheck Protection Program allows small businesses to borrow two months’ worth of payroll costs, a loan that will be forgiven if 75 percent is used for payroll costs and 25% to pay rent and utilities. But the federal government is indicating that it will scrutinize borrowers for abuse under the False Claims Act and […]
Will COVID-19 “Crony Charities” Trigger the Next Wave of FCPA Fumbles?
There are reports that businesses and individuals in some countries are under pressure to donate to COVID-19 relief charities that have close ties to government officials, such as Kazakhstan’s deputy prime minister and Uzbekistan’s president. Richard L. Cassin warns that these may be just the first instances, and notes that two of last year’s biggest […]
Watchdog Examining Dozens of Federal Coronavirus Whistleblower Cases
Thirty-one federal whistleblower disclosures related to the coronavirus have been filed with the U.S. Office of Special Counsel, a federal agency where government employees can officially blow the whistle on alleged wrongdoing. In addition, 15 federal whistleblowers have filed official complaints of retaliation for disclosing coronavirus-related concerns. For example, an HHS employee claims that he […]
A Month In, Congress Signals Close Scrutiny of CARES Act and Paycheck Protection Program
The CARES Act is only a month old, but plans for investigations to track the nearly $3 trillion in coronavirus relief funds are already emerging from Congress. Among the mechanisms for oversight created and funded by the CARES Act itself is the Congressional Oversight Commission, a five-member committee overseeing $500 billion in loans doled out […]
The Audits Are Coming! The Audits Are Coming!
Nichols Liu - On Wednesday, Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza jointly announced that the SBA will review all PPP...
Borrowers Beware: GAO Ramps Up Efforts to Root Out Fraud Among CARES Act Loan...
The GAO has announced an effort to root out fraud associated with the billions of dollars in payments promised under the CARES Act. It is encouraging individuals – private citizens, government workers, contractors, etc. – to anonymously and confidentially report any allegations of fraud, waste, abuse, and mismanagement. The agency is seeking as much detail […]
The CARES Act and DOJ Prosecution of Fraud
When Congress enacts massive financial relief legislation, one inevitable result is fraud, waste and abuse. Going back to the financial crisis in 2008, DOJ had a trove of criminal fraud and civil fraud cases under the False Claims Act. With the passage of the CARES Act, you can count on DOJ ramping up criminal and […]