On the eve of the pandemic’s two-year anniversary, the 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 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.
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 firms and the healthcare industry.
Source:
- Morrison Foerster: Enforcement Against COVID-19 Related Fraud: Two-Year Anniversary Update
