The legal world continues to navigate the lingering effects posed by the COVID-19 pandemic. Fraud related to relief efforts and financial aid programs remains a significant concern. The DOJ has been cracking down on investigations, and we’re seeing more and more settlements this year.

Yesterday, August 13, DOJ reaffirmed its commitment to combating COVID-19 fraud, emphasizing the need for vigilance and public cooperation in detecting and reporting fraudulent activities.

Businesses, both large and small may have taken advantage of government relief provided during the pandemic. Some are exploiting these benefits for financial gain. In this context, whistleblowers have been reporting fraudulent activities, ensuring that relief funds reach those who genuinely need them.

 

Understanding COVID-19 Fraud

Fraud related to COVID-19 can take many forms, from falsifying loan applications to misusing relief funds. As the government allocates billions to support healthcare, businesses, and individuals, the risk of fraud increases. This fraudulent activity undermines efforts to combat the pandemic, delays effective responses, and wastes taxpayer money.

 

Key Areas of COVID-19 Fraud

Government Spending and Programs

The government’s financial response to COVID-19, through acts like the CARES Act was huge. These funds were to support businesses, healthcare, vaccine research, the PPP program, and more. However, the sheer scale of this response and rush to get the funds out quickly led to some oversight challenges.

Common Fraud Schemes Include:

Providing false information in loan applications.
Using relief funds for unauthorized purposes.
Misrepresenting company affiliations to access funds.
Banks making loans to ineligible businesses.

Medicare and Healthcare Fraud

Regulatory changes in response to COVID-19 have also led to potential Medicare and Medicaid fraud. Temporary policies aimed at easing financial pressure on healthcare providers may be exploited by dishonest entities.

Schemes Include:

False billing for unnecessary COVID-19 treatments.
Theft of beneficiary IDs for fraudulent billing.
Marketing drugs or devices for unapproved COVID-19 uses.

Financial and Investment Fraud

The pandemic’s financial disruptions have made markets volatile, creating opportunities for fraud. Regulatory bodies like the SEC and CFTC have issued warnings about potentially fraudulent activities.

Potential Fraudulent Activities:

Insider trading based on non-public information.
Fraudulent investment schemes exploiting pandemic fears.
Misrepresentation of financial conditions in disclosures.

 

How You Can Help

Given the complexity and variety of COVID-19 fraud schemes, whistleblowers are vital to government enforcement efforts. By reporting fraud, you contribute to the integrity of relief efforts and may be eligible for whistleblower reward programs. Those who report such misconduct may be eligible for rewards under the False Claims Act and other whistleblower reward programs. Successful whistleblowers may even receive up to 30% of the recovered funds as a reward.

If you would like more information, or would like to speak to a member of the Constantine Cannon’s whistleblower lawyer team, please Contact us for a free Confidential Consultation.

Read The Ongoing Effects of COVID-19 Fraud at constantinecannon.com