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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

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