Feds fall short on recovering pandemic fraud; less than 1% has been clawed back
The Justice Department’s pandemic fraud task force has recovered just
The department announced the data Tuesday, marking nearly three years since Attorney General
Authorities say they’ve brought federal criminal charges against more than 3,500 people, accounting for about
Other agencies, such as the
“During the pandemic around
Acknowledging the hefty work still to do, top Biden officials announced their backing Tuesday for new legislation that would expand the capacity for investigations and prosecutions, raise the cap on civil recovery and double the statute of limitations for prosecuting unemployment fraud to 10 years, giving authorities more time to bring cases.
“The Justice Department’s work to identity and prosecute those who stole pandemic relief funds is far from over,”
The pandemic represented an unparalleled opportunity for scammers, with
The result was a tsunami of fraud, with the enhanced unemployment benefits, the Paycheck Protection Program and Economic Injury Disaster Loans serving as the juiciest targets.
The government is still working to come up with a total fraud estimate, but outside experts put the figure at anywhere from a few hundred billion up to Mr. Talcove’s estimate of
“Bad actors got their hands on money that was meant to help our communities get through what was an incredibly difficult time. Quite frankly, they just took advantage of the disaster for their own financial gain,” said Sen.
Biden officials pinned the blame for “historic levels of fraud” on the Trump team for ignoring some basic safeguards in the urgency to pay out. That includes not abiding by the Treasury Department’s “Do Not Pay” list or Social Security’s “Death
Whatever the blame, the massive fraud exposed an ongoing problem for the government: Once it pays out money, it’s almost impossible to get it back.
“Pay and chase doesn’t work,” said
“Since the money was not accounted for before it was sent, there is no way to calculate how much was stolen. But whatever it is, the unprecedented lack of accountability demonstrates the critical importance of continuing the oversight and recovery of pandemic programs,”
Another factor is the government’s leniency.
“From inefficiency to widespread fraud and unintended consequences, it’s clear that
The new bill includes millions of dollars for new identity verification systems that can help large federal agencies gain more confidence that they’re paying real people.
The legislation would also make permanent the data operation that’s at the center of the current pandemic fraud effort. The government’s comptroller general says if the feds hadn’t disbanded a similar data center after the recovery from the
All told,
Pandemic fraudsters ran the gamut from small-time opportunists — one
At the height of the pandemic, people were posting how-to tutorials on social media to share methods for stealing the government’s money.
Among the more than 3,500 federal pandemic fraud defendants is the sentencing last week of
Austin, a
In
In
The cases announced to date are almost exclusively domestic frauds, even though experts say a massive amount of the cash was stolen by criminal syndicates operating from abroad, oftentimes with links to foreign adversary governments.
The Biden officials said Tuesday that going after those sorts of sophisticated fraudsters will require new and persistent investment, including
“Without that, we may lose people. You could have layoffs instead of people persisting on getting the most serious syndicates that stole the most funds,”
Waukee man wanted for allegedly defrauding investors caught by FBI
Franklin County doctor sentenced to federal prison for health care fraud
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News