The COVID-19 pandemic,
which placed unprecedented demands on federal financial assistance
programs, also presented ripe opportunities for fraudsters and swindlers
to exploit the system.
A report released
by the Department of Justice (DOJ) COVID-19 Fraud Enforcement Task
Force uncovered a shocking scope of fraud during the pandemic, with over
$400 billion in emergency funding either stolen or misappropriated.
According to the report, fraudulent claims and schemes targeted
various pandemic relief efforts, including unemployment insurance
benefits, Paycheck Protection Program (PPP) loans, and Economic Injury
Disaster Loans (EIDLs), among others.
These included fraudulent claims filed using stolen identities,
inflated payroll expenses, doctored bank statements, and false tax
forms.
The report reveals that fraudsters and swindlers may have stolen
upwards of $280 billion in emergency funding, with an additional $123
billion lost or misappropriated, totaling more than $400 billion in
funds intended to aid Americans during one of the most challenging times
in recent history, The Politics Brief reported.
Here are some examples of COVID-19 fraud cases:
A defendant was sentenced to seven years in federal
prison for committing PPP, EIDL, and UI fraud, with actual losses of
more than $1 million and attempted losses of $3 million. When the
government executed search warrants in the case, agents recovered stolen
identifying information and ghost guns, including one modified to
function as a machine gun.A defendant pleaded guilty to submitting more than $3.5 million in
fraudulent COVID-19 PPP and EIDL applications and using fraudulently
obtained funds to pay for a vacation, a Mercedes-Benz, jewelry, and
luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior,
Cartier, Gucci, Chanel, and Hermes.The SDFL indicted 17 employees of the Broward Sheriff’s Office were
charged with obtaining fraudulent PPP/ EIDL loans. One former deputy was
recently convicted at trial, several employees have pleaded guilty, and
other defendants’ cases are still pending.A defendant was sentenced to 71 months in prison for fraudulently
obtaining PPP and EIDL loans and Shuttered Venue Operator Grants (SVOG),
using the stolen funds to buy two Tesla S models, a Lamborghini, a
Porsche, a diamond Audemars Piguet watch, a rose gold and diamond
pendant with his company’s logo, a half-kilogram gold chain with 70
carats of diamonds, and a 1-kilogram gold chain.A former contract detention officer at the federal Krome Detention
facility who was the leader of a PPP fraud ring was sentenced to 32
months in prison for preparing fraudulent PPP applications in return for
kickbacks.A defendant was sentenced to 70 months in prison for laundering the
over $2 million in fraudulently obtained PPP and EIDL loans and using
the funds to gamble and to pay for cosmetic surgery, a Cadillac
Escalade, and a Pomeranian puppy.In the Southern District of Georgia, a Florida-based attorney was
convicted at trial of conspiracy to fraudulently obtain almost $800,000
in Economic Injury Disaster Loans for herself and others.In the Western District of Washington, the ringleader of a $6.8
million pandemic fraud ring was sentenced to five years in prison for
fraudulently seeking funds from various relief programs.In the Eastern District of Washington, an Arkansas-based business
owner pleaded guilty to fraudulently receiving more than $16.5 million
in SBApandemic relief funds for himself and others.In the Eastern District of Virginia, a former VA nurse was sentenced
to 18 years in prison for conspiring to fraudulently obtain more than
$3.5 million in UI benefits from at least five states. She and her
co-conspirators filed more than 220 false applications for unemployment
insurance benefits using stolen identities and the identities of state
and federal prison inmates.In the Middle District of Florida, a defendant was sentenced to eight
years and six months in prison for obtaining more than $7.2 million in
PPP loan funds, which he used to purchase Maserati and Mercedes-Benz
cars and buy a 12-acre estate.The District of Minnesota has brought charges against more than 50
individuals for their respective roles in a $250 million fraud scheme
that exploited a federally funded child nutrition program during the
COVID-19 pandemic.In the Eastern District of Michigan, a man was sentenced to 15 years
in prison for his role as the ringleader of conspiracies to use stolen
identities to fraudulently obtain $2.1 million in unemployment insurance
benefits from multiple states and to traffic in methamphetamine.Read more here.
The DOJ’s COVID-19 Fraud Enforcement Task Force has made significant
strides in combating this fraud, with over 3,500 defendants criminally
charged with more than $1.4 billion in fraudulently obtained CARES Act
funds seized or forfeited and more than 400 civil settlements and
judgments.
However, the sheer magnitude of the fraud indicates that much work remains to be done.
The Gateway Pundit
previously reported that Paul Pelosi, who has an 8.1 percent share of
restaurant company EDI Associates, received loans of more than $1.7
million from the federal government, which won’t have to be repaid.
This one holds a special place in my ❤️@SpeakerPelosi ‘s husband Paul Pelosi took some PPP loans as well even though him and his wife do absolutely excellent in the stock market and both also have two full time careers. Clearly they needed it… pic.twitter.com/lMVDb6HpwL
— 𝗗𝗼𝘁.𝗙𝗿𝗲𝗻 🏴☠️ (@RealDotFren) August 21, 2022
EDI Associates was given two loans – one for $711,708 and the other for $996,392.
As the database shows, both loans have been forgiven. As noted by the
Daily Mail, the decision to forgive a loan is based upon a formula that
takes into account the number of employees retained and their wages.
The news about the husband of the House speaker raised eyebrows on social media.
Paul Pelosi has a net worth of over 120 Million
and took a 1,709,100 dollar PPP loan that was then forgiven. But they
need 87,000 IRS agents to look into your finances.— Joey – Master of Wit and Sarcasm (@jjstyx) August 17, 2022
Paul Pelosi and Hollywood Crooks have millions of loans forgiven https://t.co/xHYAZrEnXT
— K. Bitterman Gross (@KBittermanGross) August 19, 2022
You can read the full report from the DOJ below:
(Article by Jim Hᴏft republished from TheGatewayPundit)
Click this link for the original source of this article.
Author: Planet Today
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