The Department of Justice has issued a warning to those who may have taken advantage of struggling businesses during the pandemic. The department’s “COVID-19 Strike Force” team has been deployed to pursue legal action against those who may have taken money intended for pandemic relief. So, if you are one of those who have taken advantage of the situation, be wary, as the Strike Force may be coming for you.
Law enforcement officials are warning individuals who may have cheated the Payment Protection Program system that they are not in the clear, as Congress recently expanded the statute of limitations to ten years for prosecuting fraud cases. It has been revealed that billions of dollars have been misappropriated, and the government is determined to recover every penny. FOX31 has reported that individuals who have benefited from the program should be prepared to face legal consequences if they are found to have committed fraud.
Jonathan Towle, the acting special agent in charge for the IRS Criminal Investigation Denver Field Office, emphasized the significance of keeping our economy running during the time when the funds were allocated for a good cause.
During the initial two years of the pandemic, a substantial amount of money was assigned to support those who were struggling, while businesses were striving to survive. The Paycheck Protection Program (PPP) provided businesses with forgivable loans on the condition that they retained their employees on the payroll.
Matt Kirsch, former Acting U.S. Attorney for the District of Colorado, has revealed that the money wasn’t distributed effectively and didn’t reach the intended recipients.
According to Kirsch, combatting COVID-related fraud is a major focus of the economic crime section. Currently, their district is one of only five nationwide with a dedicated COVID fraud strike force. The team consists of four prosecutors who are solely dedicated to working on these cases, while other prosecutors are also handling related cases.
Around one year ago, a task force comprising members of his officer and various other agencies was established to locate and recover PPP funds.
According to Kirsch, the team has already filed charges against 30 individuals involved in fraudulent activities. Out of these, 12 have already been sentenced. Shockingly, these 12 individuals attempted to steal a whopping $29 million. The SBA’s office of inspector general conducted an extensive analysis of the Paycheck Protection Program and the Economic Injury Disaster Loan program. After careful scrutiny, they estimated that fraudsters may have managed to get their hands on around $200 billion of the total trillion dollars disbursed through these two programs.
At present, there are 53 ongoing cases that Kirsch cannot discuss due to confidentiality reasons. Alongside these cases, there are also 21 active cases that are currently being addressed.
Kirsch stated that discussing public information is within the realm of possibility.
Colorado boutique owner stole $500K in relief funds
During his speech, the focus was on one particular case that the Problem Solvers have been actively investigating. The case involves Shambrica Washington, an online boutique owner who allegedly misused almost $500,000 in relief funds. Washington has been found guilty on 31 counts of wire fraud, bank fraud, money laundering, and making false claims.
According to court records, she utilized the funds to purchase multiple properties, automobiles, and even underwent an elective surgical procedure.
Kirsch expressed disappointment at the misuse of taxpayer money, stating that such spending only serves as a motivation for the task force to prosecute these cases.
Towle expressed disappointment over the fact that a huge sum of $16 million was attempted to be fraudulently obtained through payroll protection, and even though only $485,000 was successfully taken, it is still unacceptable. As a taxpayer, Towle strongly believes that such actions are unjust and unfair to everyone who follows the law. It is not right to take advantage of public funds for personal gain.
The Task Force still has a lot of work to do, despite the fact that COVID relief funds are no longer a concern.
Kirsch emphasized the DOJ’s dedication to recovering as much of the money as possible, stating, “It’s important for people to understand the significant amount of time and effort we’re putting into this endeavor.”
Towle assures that those who have committed fraud and believe that they have gotten away with it might not have. With utmost diligence, they are continuously investigating every loan, one after another, to check if the money was used inappropriately. Towle also pointed out that the statute of limitations is 10 years, which is a considerably long time.
According to Towle, their team has looked into over 3,500 instances of fraud in this program on a national level.
He stated that the IRS Criminal Investigation (IRSCI) has conducted an investigation into $8.9 billion worth of this fraud across the country.
If someone has committed fraud and wants to put an end to the anticipation of being caught by the Task Force, they have the option to report themselves. By doing so, they can collaborate with agents and receive a more merciful sentence.
If you have any information regarding attempted fraud related to COVID-19, you can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or by using the NCDF Web Complaint Form available here. The Department of Justice encourages individuals to come forward with any information they may have in order to prevent fraudulent activities and protect the public during this time of crisis.