DOJ announces COVID fraud charges against 371 defendants

The nationwide action investigated more than $836 million in fraud
371 individuals are facing charges and 119 pleaded guilty or were convicted
Millions of dollars were collected in restitution, judgments and forfeitures

Updated: Aug 23, 2023 / 01:47 PM CDT

FILE – President Donald J. Trump’s name is printed on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak in this April 23, 2020 photo taken in San Antonio. Early in the pandemic, government relief checks became an attractive target for criminals. The problem has only gotten worse and postal authorities and bank officials are warning Americans to avoid mailing checks if possible, or at least to use a secure mail drop such as inside the post office. (AP Photo/Eric Gay, File)

(NewsNation) — After a nationwide investigation, the Justice Department is bringing criminal charges against 371 defendants for COVID-19 fraud worth more than $836 million.

The three-month coordinated law enforcement action took place from May through July 2023, including criminal, civil and forfeiture actions. The department worked with more than 50 U.S. Attorneys’ Offices and more than a dozen law enforcement partners to conduct the sweep.

The cases involved charges related to pandemic unemployment insurance fraud and fraud related to two of the largest business programs, the Paycheck Protection Program and the Economic Injury Disaster Loan program. There were also actions involving pandemic health care billing fraud, Emergency Rental Assistance program fraud and tax fraud related to a refundable credit for businesses and tax-exempt organizations that were affected by the COVID-19 pandemic.

“The Justice Department has now seized over $1.4 billion in COVID-19 relief funds that criminals had stolen and charged over 3,000 defendants with crimes in federal districts across the country,” said Attorney General Merrick B. Garland. “This latest action, involving over 300 defendants and over $830 million in alleged COVID-19 fraud, should send a clear message: the COVID-19 public health emergency may have ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over.”

A total of 718 enforcement actions occurred, including criminal and civil charges, forfeitures, guilty pleas and sentencing. Among the defendants, 371 faced criminal charges and 119 pleaded guilty or were convicted at trial during the action. Sixty-three defendants have alleged connections to violent crime, and 25 are allegedly connected to transnational crime networks.

There was also a total of $57 million in restitution imposed by court order, more than $10.4 million in judgments and more than $231.4 million in forfeiture.

Anyone with information about attempted fraud involving COVID-19 programs can report it to the Justice Department through its hotline at 866-720-5721 or submit a tip online.