The U.s. Government Has Identified $5.4 Billion In Potential Covid Fraud Scams.

2/10/2023 by Brian Hamachek


The U.S. Pandemic Response Accountability Committee recently reported that $5.4 billion in COVID aid fraud has been identified. This fraud was done through the Small Business Administration's (SBA) COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) program and Paycheck Protection Program (PPP). The SBA's initial approach to quickly disburse funds made these programs more susceptible to fraud. Whistleblowers have been instrumental in helping the government root out fraud, and under the False Claims Act (FCA) are entitled to 15-30% of the recovery made by the government. The Department of Justice (DOJ) established the COVID-19 Fraud Enforcement Task Force to tackle the fraud, and recently announced the first-ever PPP fraud whistleblower case.

However, whistleblower advocates have expressed concern over the DOJ's handling of whistleblower cases in recent years. In 2021, whistleblowers recovered $1.1 billion in government declined cases, which was more than what the government recovered in intervened cases. Whistleblowers are a key resource in the government's efforts to fight fraud, but without DOJ intervention, many cases will have no chance of success.

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