$17,000,000 Covid-Relief Fraud Ring Busted by Feds, Throwing Eight People Behind Bars: DOJ

Federal prosecutors say eight people have been sentenced for their roles in a multi-year scheme that defrauded U.S. COVID-19 relief programs of more than $17 million.

The Department of Justice (DOJ) just announced the conclusion of an investigation that began with charges back in 2021.

According to court filings, the group of fraudsters submitted fraudulent applications to both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The programs were created during the pandemic to provide emergency financial assistance to small businesses and self-employed individuals.

Investigators said the conspiracy used fabricated documents, false business records, and coordinated efforts to obtain funds that were then diverted for personal use. Prosecutors said that the fraudulent applications deprived legitimate businesses of aid intended to cover payroll, rent, and other essential expenses during the COVID-19 crisis.

The DOJ notes that with sentencing now complete, all participants in the scheme have been held accountable. In total, defendants received a combination of prison terms, home detention, and community confinement, along with restitution orders.

Authorities said that pandemic relief fraud remains a priority for federal enforcement agencies.

Since 2020, prosecutors have charged more than 3,500 defendants nationwide with offenses connected to misused relief funds, recovering billions through criminal and civil actions, according to the DOJ.

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