World

Almost 500 charged over US$569 mil Covid-19 fraud: DoJ

In a Texas case, defendant sought US$24.8 mil by applying for 15 loans from 8 lenders using 11 firms

Updated 5 years ago · Published on 27 Mar 2021 10:00AM

Almost 500 charged over US$569 mil Covid-19 fraud: DoJ
DoJ is also cracking down on schemes targeting consumers by scammers seeking to sell fake cures and treatments for the coronavirus. – AFP pic, March 27, 2021

WASHINGTON – Nearly 500 people have been charged in the United States for fraud schemes involving more than half a billion dollars in Covid-19 relief, said the Justice Department (DoJ) yesterday.

“DoJ has led a historic enforcement initiative to detect and disrupt Covid-19-related fraud schemes,” said Attorney-General Merrick Garland in a statement. 

A total of 474 defendants have been charged in cases involving attempts to fraudulently obtain over US$569 million (RM2.36 billion), said the department.

Garland said the anti-fraud operation “sends a clear and unmistakable message to those who would exploit a national emergency to steal taxpayer-funded resources from vulnerable individuals and small businesses”.

“We are committed to protecting the American people and the integrity of the critical lifelines provided for them by Congress,” he said in reference to the billions in relief approved by lawmakers.

At least 120 of those charged sought to fraudulently obtain funds from the Pay Cheque Protection Programme (PPP) designed to help small businesses.

In one Texas case, a defendant sought US$24.8 million by applying for 15 PPP loans from eight lenders using 11 companies.

“The defendant obtained approximately US$17.3 million and used the proceeds to purchase multiple homes, jewellery and luxury vehicles,” said DoJ.

It said international organised criminal groups also applied for unemployment benefits using stolen identities.

The department is cracking down on schemes targeting consumers by scammers seeking to sell fake cures and treatments for the coronavirus.

“DoJ has prosecuted or secured civil injunctions against dozens of defendants who sold products – including industrial bleach, ozone gas, vitamin supplements and colloidal silver ointments – using false or unapproved claims about the products’ abilities to prevent or treat Covid-19 infections.” – AFP, March 27, 2021

Related News

Malaysia / 4w

RM2.48m lost daily to investment fraud syndicates since 2023

Malaysia / 1mth

Former investment bank CEO charged with RM139.8m fraud

Malaysia / 4mth

Covid-19 cases in Malaysia stable, no deaths recorded this year – MOH

Malaysia / 4mth

Online fraud: Number of cases, losses continue to rise – deputy minister

Malaysia / 4mth

US charges three Malaysian state telecoms officials for alleged multimillion-dollar fraud

Malaysia / 4mth

Court orders Maybank to pay RM166,000 to customer due to illegal transactions

Spotlight

Malaysia

Immigration busts international scam syndicate operating from unused Kuantan resort

Malaysia

Malaysia prevents RM1.9b in scam transactions as BNM targets real-time fraud alerts

Malaysia

Parental involvement crucial in tackling school bullying, says PM as cases hit nearly 5,700

Malaysia

19-year-old female student strangled to death in Kuantan following quarrel; boyfriend arrested

Malaysia

Loke slams 10 Negeri Exco members for ‘backstabbing’ Tuanku Muhriz

Malaysia

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

By Alfian Z.M. Tahir

Malaysia

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

You may be interested

World

Iran-US war widens to Yemen as Houthi attacks threaten oil supplies

World

Seoul adopts high alert after AI tools utilised in major banking hack

World

Nepal halts survivor search 40 days after disastrous Bhotekoshi And Trishuli floods

World

Bangkok boosts flood contingency plans as delegates arrive for IMF-World Bank meetings

World

UN chief urges permanent Gaza ceasefire ahead of Oct 7 conflict anniversary  

World

Saudi-backed forces recapture Mocha as Houthis launch retaliatory strikes

World

Thailand tightens foreign business crackdown as backlash grows on tourist islands

World

Trump shifts stance on mail-in voting ahead of November midterms