The Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration directed federal agencies to step up their efforts to investigate and prosecute fraud.
Book a Consultation CallThe Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration has directed federal agencies to step up their efforts to investigate and prosecute fraud related to pandemic relief programs.
The relief programs were established to provide financial support to individuals and businesses impacted by the COVID-19 pandemic. Unfortunately, scammers have taken advantage of these programs and have stolen billions of dollars.
The Biden administration has taken several steps to combat this fraud. It has created a COVID-19 Fraud Enforcement Task Force to coordinate investigations and prosecutions across multiple agencies. The task force is also working to increase public awareness of COVID-19 fraud and how to report it.
In addition, the administration has directed federal agencies to take a more proactive approach to preventing fraud. This includes improving fraud detection systems and sharing data across agencies to identify fraudulent activity.
The Biden administration has also made it clear that it will hold those who engage in COVID-19 fraud accountable. The Department of Justice has already brought several cases against individuals and companies that have defrauded the relief programs.
There have been various estimates of the amount of fraud that has occurred in COVID-19 relief programs. According to a report from the Government Accountability Office (GAO) released in November 2020, the federal government had distributed more than $2.6 trillion in pandemic relief funds as of September 2020, and the GAO estimated that improper payments, including fraud, could range from $2 billion to $4 billion.
However, more recent estimates suggest that the amount of fraud could be higher. According to a report from the Office of the Special Inspector General for Pandemic Recovery (SIGPR) released in January 2021, there were "significant levels of fraud" in the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, with estimated losses of $4.6 billion to $5.4 billion. More recent estimates put the number at $60 billion.
In February 2021, the Department of Justice announced that it had charged more than 150 individuals with COVID-19 related fraud, including schemes related to PPP and EIDL. The DOJ also announced that it had recovered more than $580 million in COVID-19 related fraud cases.
So while it's difficult to estimate the exact amount of fraud that has occurred in COVID-19 relief programs, it's clear that it has been a significant problem.
If you have a EIDL loan issue of more that $30,000, contact our law firm to reserve a consultation time.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
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Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
Clients personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
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