The Justice Department is calling for more resources to investigate and prosecute individuals who stole billions in pandemic relief funds, according to a report released on Tuesday. Federal officials have made progress in pursuing fraud cases related to pandemic relief, but acknowledge that significant work still needs to be done due to budget constraints.
Since the onset of the pandemic, the federal government has charged over 3,500 defendants for offenses related to pandemic fraud, with more than $1.4 billion in fraudulently obtained funds seized or forfeited. Most cases involve programs like the Paycheck Protection Program, the Economic Injury Disaster Loan program, and expanded unemployment benefits.
However, the extent of the stolen funds remains unknown, with estimates suggesting that at least $200 billion in pandemic loans and $135 billion in unemployment benefits were distributed to potentially fraudulent actors. The Justice Department is urging lawmakers to pass legislation extending the statute of limitations for pandemic fraud-related offenses to aid in prosecution efforts.
President Biden has expressed strong support for legislation introduced by three Democratic senators that would provide $300 million to enhance enforcement efforts. The White House is pushing for additional funding to help law enforcement officials tackle the wave of pandemic fraud cases.
Despite the challenges posed by the sheer volume of fraud cases, federal officials are committed to continuing their efforts to investigate and prosecute pandemic relief fraud. The report also highlights the need for a permanent interagency body to combat government benefits fraud and prevent future instances of fraud.
