Main Street Monday – The Justice Department Has Clawed Back Over $1.4 Billion in Relief Fraud
August 28, 2023
Delaney Sexton
Contributing Editor
Main Street Monday – The Justice Department Has Clawed Back Over $1.4 Billion in Relief Fraud
“I applaud the hard work of our prosecutors around the country,” says Acting Director Galdo. “However, this announcement is not a victory lap. Our mission is not complete. We know from our investigative partners that identifying those who committed pandemic relief fraud and recovering stolen funds is difficult work. But the Justice Department, including our strike forces, U.S. Attorneys’ Offices, and the Criminal and Civil Divisions, is committed to using our criminal, civil, and forfeiture tools to hold these fraudsters accountable.”
During a roundtable meeting of senior Justice Department Officials, law enforcement partners, and Office of Inspector General executives, Attorney General Merrick Garland stated that the Justice Department has seized more than $1.4 billion in PPP, EIDL, unemployment insurance, and other relief funds that were stolen by criminals. There are charges against over 3,000 defendants across the country in connection to this.
The results of a nationwide COVID-19 fraud enforcement action were also announced during the roundtable meeting. Over 50 U.S. Attorney’s Offices (including COVID-19 Fraud Enforcement Strike Forces), the Justice Department’s Criminal and Civil Divisions, and more than a dozen law enforcement and OIG partners worked together to conduct this major sweep.
The three-month operation spanned from May to July, leading to 718 enforcement actions. This operation targeted $836 million in alleged COVID fraud, and federal criminal charges were filed against 371 defendants. So far, 119 defendants pled guilty or were convicted at trial during the sweep. Acting Director Galdo also shared that 63 of the defendants had alleged connections to violent crime, including gang members accused of using pandemic funds for a murder for hire. Additionally, 25 defendants allegedly have connections to transnational crime networks.
Among the announcements, Deputy Attorney General Monaco talked about the launch of two more COVID-19 Fraud Enforcement Strike Forces: one at the U.S. Attorney’s Office for the District of Colorado and one at the U.S. Attorney’s Office for the District of New Jersey. Now making five in total, the other three strike forces launched in September 2022 are the Eastern and Central Districts of California, the Southern District of Florida, and the District of Maryland.