At the onset of the COVID-19 pandemic—and thus nearly a year and a half ago—the federal government implemented a massive stimulus program to prop up the economy. A key component of that stimulus was the Paycheck Protection Program (PPP). The PPP allowed businesses to obtain forgivable loans to be used for payroll and related expenses;
From Price Gouging to Fraud: A Look at the Department of Justice’s Shifting Focus One Year in the COVID-19 Pandemic
In early March 2020, at the outset of the COVID-19 pandemic, former Attorney General William Barr instructed federal prosecutors to prioritize the “detection, investigation and prosecution of all criminal conduct related to the current pandemic.” His memos from the early days of the pandemic made it clear that COVID-19 related wrongdoing would be a top
Continued Scrutiny of COVID-19 Fraud Ensnares Cincinnati Politico
Ohioans disenchanted with the past two years of public corruption cases (see our previous post on that subject here) may no longer have to tolerate the seemingly endless number of Ohio politicians being indicted for bribery. That’s because apparently now they’re being indicted for fraud.
Cincinnati activist and perennial political candidate Kelli Prather was
DOJ Obtains First FCA Settlement Against PPP Borrower
The U.S. Department of Justice (DOJ) announced its first civil settlement under the False Claims Act (FCA) against a Paycheck Protection Program (“PPP”) borrower. This likely marks the beginning of a new trend of civil enforcement cases under the FCA, separate from criminal cases, against PPP recipients. (See prior post here discussing recent criminal prosecutions.)
No End in Sight for PPP Fraud Prosecutions
“Never let a good crisis go to waste” was an observation supposedly made by Winston Churchill at the Yalta Conference towards the end of the Second World War while he was pressing for the formation of the United Nations. In 2020, Churchill’s admonition has found a less lofty home with COVID fraudsters who have abused
Fraud Prosecutions on the Horizon: What to Expect in the Near Future from the DOJ
On March 20, 2020, the Attorney General ordered the Department of Justice (“DOJ”) to prioritize oversight, investigation, and prosecution of misuse of federal funds distributed in response to the COVID-19 pandemic.[1] Now, almost six months later, the DOJ continues to examine instances of “COVID-19 Fraud” for possible civil or criminal prosecution. The DOJ’s prioritization
False Claims Act Liability for Government Stimulus Funds: A Primer for First Time Recipients of Federal Money
The federal government has been handing out billions of dollars in stimulus money to individuals and companies. These funds have helped businesses survive the COVID-19 pandemic by providing them with low or no-cost liquidity when they are not permitted to operate as they would normally. But stimulus money, like all government money, is a double-edged