Headlines that Matter for Companies and Executives in Regulated Industries
DOJ Updates Actions to Combat Fraud Related to COVID-19
On March 26, 2021, the Department of Justice provided an update on its criminal and civil enforcement efforts to combat fraud related to the COVID-19 pandemic. According to DOJ’s announcement, 474 defendants have been publicly charged with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. Broadly, these schemes include:
Paycheck Protection Program Fraud: DOJ announced that at least 120 defendants were charged with PPP fraud in cases ranging from individual business owners who inflated their payroll expenses in order to obtain larger loans to organized criminal networks who submitted identical loan applications and supporting documents under different company names. According to DOJ, most of the defendants charged had misappropriated loan proceeds for prohibited purposes, including for purchasing homes, jewelry, and luxury