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