Reported by Madeleine Ngo

Summary of original article shown below

Federal prosecutors are working to recover pandemic aid funds obtained through fraudulent means. Many schemes involved false claims for relief funds intended to support the economy during Covid shutdowns. Some prosecutors are examining violent crime suspects for potential links to pandemic fraud, while others are forming specialized “strike force teams” to tackle more complex fraud enterprises. The federal government is seeking creative methods to uncover the extensive fraudulent claims made during the pandemic, with estimates suggesting that over $200 billion, or 17% of $1.2 trillion in pandemic loans, may have been fraudulently disbursed. Thousands of investigations are still ongoing, particularly related to unemployment-insurance fraud.

Despite the challenges of uncovering widespread fraud, more than 2,230 defendants have been charged, and over 550 convictions have been made in connection with pandemic fraud. Some districts have pursued civil cases due to the sheer volume of lower-tier fraud instances, using local connections to identify potential fraudsters. In one approach, U.S. attorney offices in Mississippi have partnered with local officials to identify recipients of pandemic loans who may have been involved in fraudulent activities. Similarly, in Maryland, officials are screening violent crime suspects for possible pandemic-related fraud.

The Justice Department has formed “strike force teams” to collaborate with U.S. attorney’s offices and various federal agencies to target large fraud schemes. These teams use data-driven methods to identify patterns of suspicious activity. Additionally, inspectors general and agencies like the FBI, Secret Service, and IRS Criminal Investigation are working across more than 40 offices to investigate pandemic-related fraud. With default rates on pandemic loans rising, investigators anticipate uncovering more cases of potential fraud in the coming years. Efforts to recover funds and prosecute fraudsters continue across various federal agencies and departments.

Read full report: https://www.nytimes.com/2023/08/06/us/politics/pandemic-fraud.html?searchResultPosition=1