News & Analysis as of

Criminal Prosecution CARES Act Fraud

Morgan Lewis

Paycheck Protection Program Enforcement Likely to Continue with Focus on More Complex Cases

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Recent Paycheck Protection Program (PPP) enforcement trends suggest that the US Department of Justice (DOJ) has begun focusing on False Claims Act (FCA) enforcement actions centered on PPP applicants’ technical compliance...more

Fox Rothschild LLP

Federal Reserve Board Fines Bank for Processing PPP Loans That Had Signs of Fraud

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In its first enforcement action related to COVID-19 government aid programs, the Federal Reserve Board recently announced that it has fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program...more

Epstein Becker & Green

DOJ Settles False Claims Allegations with the Paycheck Protection Program (“PPP”) Loan Lender for the First Time

Epstein Becker & Green on

Given the volume of funds that were quickly dispersed during the COVID-19 pandemic, there were plenty of new areas for fraud and abuse. The Department of Justice (“DOJ”) initially set its sights on targeting the borrowers of...more

ArentFox Schiff

Investigations Newsletter: COVID-19 Fraud Update: DOJ Prosecutes More than 150 Defendants, 95 Criminal Cases

ArentFox Schiff on

COVID-19 Fraud Update: DOJ Prosecutes More than 150 Defendants, 95 Criminal Cases - Since the inception of the CARES Act, DOJ’s Fraud Section has prosecuted over 150 defendants in over 95 criminal cases. The Fraud Section...more

Fox Rothschild LLP

New Interagency COVID-19 Fraud Strike Force Intensifies Investigations of Pandemic Relief Loans

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Vanessa R. Waldref, the U.S. Attorney for the Eastern District of Washington, recently announced the creation of a new interagency COVID-19 Fraud Strike Force to combat alleged fraud arising from the pandemic. One of its...more

Ballard Spahr LLP

PPP enforcement turns to lenders

Ballard Spahr LLP on

As we approach the two-year anniversary of the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the scope and costs of fraud in connection with its relief programs continues to mount. To date,...more

Kaufman & Canoles

Litigation Client Alert: PPP, EIDL, and UI Loan Fraud – What to Know About Financial Crimes under the CARES Act

Kaufman & Canoles on

Federal prosecutions continue to increase across the country against businesses and individuals accused of fraudulent conduct under the Coronavirus Aid, Relief and Economic Security (CARES) Act. In March, the Department of...more

Fox Rothschild LLP

Paycheck Protection Program-Related Convictions Result In Harsh Federal Prison Sentences

Fox Rothschild LLP on

The U.S. Department of Justice took several victory laps this month, touting long prison sentences it has secured for COVID-19 related fraud. These prison terms send a clear message to any individual or business that...more

WilmerHale

Weekly COVID-19 Oversight & Enforcement Report - June 2021

WilmerHale on

The House Select Subcommittee on the Coronavirus Crisis continues its investigation into PPP fraud. On May 27, the Select Subcommittee turned its focus to FinTech firms and partner banks implicated in Department of Justice...more

ArentFox Schiff

Investigations Newsletter: The Department of Justice Continues to Aggressively Pursue COVID-19 Related Fraud

ArentFox Schiff on

In addition to the ever-growing number of fraud charges brought in connection with the SBA’s PPP program, recent indictments issued across the country in connection with Covid-19 unemployment benefits and economic injury...more

Bass, Berry & Sims PLC

PPP Investigations, Settlements and Litigation on the Horizon

Bass, Berry & Sims PLC on

In the last year, the Department of Justice (DOJ) has brought more than 100 criminal cases relating to Paycheck Protection Program (PPP) Fraud. These criminal prosecutions started at a blistering pace, with the first...more

Morgan Lewis

A Fraud Section Year in Review for a Year Like No Other

Morgan Lewis on

The US Department of Justice’s Criminal Division Fraud Section (DOJ) released its annual Year in Review report on February 24, covering 2020. This year’s report highlights DOJ’s sustained aggressive enforcement efforts...more

Fox Rothschild LLP

DOJ Announces First Criminal Prosecution For Misuse Of COVID-19 Relief Funds Dedicated To Health Care Providers

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The Justice Department has widened its crackdown on COVID-19 fraud, announcing the first criminal case alleging misuse of federal relief funds designated for medical providers. The egregious nature of the alleged fraud and...more

PilieroMazza PLLC

DOJ Announces Nation’s First Settlement of Civil Case for PPP Loan Fraud

PilieroMazza PLLC on

On January 12, 2021, the U.S. Department of Justice (DOJ) entered into a settlement with California-based SlideBelts, Inc. (SlideBelts) and its president and chief executive officer in what is advertised as the country’s...more

Dorsey & Whitney LLP

Borrowers and Banks Beware: The New Year Brings the Nation’s First False Claims Act Settlement for Paycheck Protection Program...

Dorsey & Whitney LLP on

On January 12, 2021, the Eastern District of California entered into a civil settlement with a Paycheck Protection Program (“PPP”) borrower and its CEO to resolve allegations of fraud. The settlement stemmed from a $350,000...more

Parker Poe Adams & Bernstein LLP

The Federal Government Continues Investigations Into Paycheck Protection Program Loans

The U.S. Department of Justice has brought criminal indictments against business owners in North Carolina, South Carolina, and Georgia over their use of the Paycheck Protection Program. The program resulted in a rapid influx...more

Fox Rothschild LLP

PPP Loan Fraud Enforcement 2.0: Preparing For The Next Round Of Scrutiny

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While the $525 billion Paycheck Protection Program (PPP), enacted as part of the CARES Act, has undoubtedly helped millions of deserving businesses survive the COVID-19 pandemic, it has also provided a unique opportunity for...more

Lathrop GPM

Shield Yourself From Liability for Your PPP Loan

Lathrop GPM on

A Florida business owner facing criminal charges serves as a cautionary tale: think twice before using Payroll Protection Program funds to upgrade to a Lamborghini. And, think a third time if you believe you are...more

Mintz - Health Care Viewpoints

Acting Assistant Attorney General Brian Rabbitt Announces 57 Charged with PPP Fraud in Remarks Delivered at PPP Fraud Enforcement...

As predicted, the U.S. Department of Justice (DOJ) and other enforcement agencies have acted quickly to bring substantial criminal enforcement actions for fraud against the Paycheck Protection Program (PPP). Acting Assistant...more

Burr & Forman

US DOJ Criminal Chief Announces 57 “Main Justice” PPP Cases

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At a September 10 press conference, Acting Assistant Attorney General Brian Rabbitt announced that the Department of Justice (“DOJ”) Criminal Division has reached 57 criminal prosecutions for fraud in connection with the...more

Robins Kaplan LLP

Financial Daily Dose 9.10.2020 | Top Story: EU Regulators Challenge Facebook Data Transfers

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New concerns from Ireland’s Data Protection Commission about Facebook’s protection of information from American government surveillance may soon force the social networking giant to “overhaul its operations to keep data on...more

Vinson & Elkins LLP

A Pandemic-Era Primer On The Fraud Injunction Statute – DOJ’s Tool For Fighting COVID-19 Fraud

Vinson & Elkins LLP on

The Department of Justice (“DOJ”) has made clear that it is pursuing civil enforcement actions and criminal prosecution of individuals and entities exploiting the COVID-19 pandemic for their own gain, as seen in the U.S....more

Downs Rachlin Martin PLLC

PPP Enforcement: It’s Not Funny

While many who have accepted PPP loans now consider the forgiveness aspects and process, be mindful of federal enforcement. To date, the Justice Department has filed 36 PPP fraud cases, charging about 51 defendants....more

Mintz - Health Care Viewpoints

Massachusetts U.S. Attorney’s Office Enters into MOU with Office of the Special Inspector General for Pandemic Recovery

United States Attorney Andrew E. Lelling recently announced that the U.S. Attorney’s Office (USAO) for the District of Massachusetts entered into a Memorandum of Understanding (MOU) with Special Inspector General Brian D....more

Bass, Berry & Sims PLC

Sharing is CAR(E)ing: EDVA U.S. Attorney Agrees to Help SIGPR Prosecute CARES Act Fraud

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The newly appointed Special Inspector General for Pandemic Recovery (SIGPR), Brian Miller, struck an important partnership with the U.S. Attorney’s office for the Eastern District of Virginia (EDVA U.S. Attorney). On July...more

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