Federal law enforcement authorities have executed a sweeping operation targeting COVID-19 fraud, resulting in the charging of over 370 individuals and the recovery of $231 million, the U.S. Justice Department announced on Wednesday. The crackdown, part of an ongoing effort to combat pandemic-related financial crimes, aimed to address fraudulent activities involving relief programs and funds intended for struggling businesses during the pandemic.
The Department of Justice (DOJ) unveiled that criminal charges had been filed against 371 individuals as part of the operation, with a focus on unearthing fraudulent applications for assistance through programs like the Paycheck Protection Program and Economic Injury Disaster Loans. These initiatives were designed to provide support to small businesses grappling with pandemic-induced challenges.
Deputy Attorney General Lisa Monaco disclosed during a roundtable meeting of law enforcement officials that more than $830 million in COVID-19 fraud was targeted in the nationwide sweep. Additionally, it was revealed that over 60 of the defendants had connections to violent crime and transnational criminal networks.
Highlighting some specific cases, Monaco described a scenario involving 30 members of a street gang in Wisconsin who allegedly employed funds from an unemployment fraud scheme for activities such as soliciting murder for hire and purchasing firearms and drugs. Another case involved four individuals charged in an international pandemic relief fraud and money laundering scheme tied to Nigeria.
This operation was carried out through the collaboration of three strike teams in California, Maryland, and South Florida, working alongside 50 U.S. attorneys and multiple law enforcement partners. The teams operated over a span of three months from May to July, leading to successful recoveries and charges.
As part of the ongoing efforts to reclaim stolen pandemic relief funds, the DOJ is establishing two additional strike teams in Colorado and New Jersey. Deputy Attorney General Monaco emphasized the department’s commitment to ensuring convicted defendants pay back every dollar they have fraudulently obtained.
The U.S. Attorney General, Merrick Garland, established a task force in May 2021 dedicated to pursuing individuals involved in COVID-19 relief fund fraud. Since its inception, the task force’s endeavors have resulted in criminal charges against more than 3,000 individuals and the seizure of over $1.4 billion in stolen pandemic relief funds, according to the DOJ.
The nationwide operation serves as a testament to the federal government’s determination to combat COVID-19-related financial crimes and underscores the significant steps taken to bring fraudsters to justice while recovering vital resources for legitimate relief efforts.
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