|
Our results fighting fraud
Here’s your monthly update on our investigations into stolen taxpayer dollars.
To date, we have supported 48 partners in over 1,000 investigations into more than 23,000 subjects, uncovering a potential fraud loss of $2.4 billion.
With our authority to investigate fraud across programs, we use advanced data analytics to identify wrongdoing that fraudsters try to hide.
|
|
Luxury at taxpayers’ expense
Fraudsters have used taxpayer funds to support lavish purchases. Below are a few notable examples of what they purchased with their ill-gotten gains:
|
|
|
Our Fraud Task Force has agents from 18 Offices of Inspectors General, who work with our data scientists to pinpoint anomalies in billions of rows of transaction data that indicate potential fraud.
Here are a few recent case results:
Fraudulent connections
The CEO of a wireless company and the company itself pleaded guilty to defrauding several federal assistance programs, including the Paycheck Protection Program (PPP). The company fraudulently obtained PPP funds, which the CEO used for personal purchases.
Additionally, they orchestrated a scheme to steal over $100 million from the Lifeline program—a Federal Communications Commission (FCC) program designed to help low-income consumers afford telecom services—by inflating customer numbers and using coercive tactics to retain subscribers.
The defendants agreed to pay over $109 million in restitution to the FCC and more than $1.7 million to the Small Business Administration.
|
|
Plunging into fraud
A Massachusetts businessman was ordered to pay $179,090 in restitution and serve two years of supervised release. As the owner of a plumbing and heating company, he misappropriated loan funds from the COVID-19 Economic Injury Disaster Loan program by diverting approximately $179,000 for personal expenses, including purchasing a diamond ring and remodeling his home.
|
|
Not worth the new whip
A New Orleans man pleaded guilty to multiple charges related to fraudulently obtaining relief funds. He made false statements to secure an $86,800 PPP loan, stole $149,900 from the Small Business Administration through a fraudulent application, and laundered the stolen money by purchasing a car in California. Additionally, he filed a false tax return with the IRS. He faces up to five years in prison for each false statement and tax filing charge, as well as up to 10 years for each charge of money laundering and theft of government funds.
|
|
Singin' the blues
Two co-founders of Blueacorn, a lender service provider, have been charged with defrauding the PPP program by submitting false loan applications for themselves and their business clients. They allegedly fabricated documents such as payroll records and tax statements to obtain loans they were not eligible for, while also charging borrowers illegal kickbacks based on the loan amounts. The pair expanded operations by allegedly forming agreements with lenders, submitting fraudulent applications, and coaching borrowers on how to submit false information to increase earnings. If convicted, they face up to 20 years in prison on each charge. Our data analytics center supported this investigation.
|
|
To fight fraud, strengthen your defenses
Many OIGs rely on PRAC analytics to instantaneously see red flags in agency awards, reduce manual data processing time, and improve the quality of investigations and audits. The PRAC’s analytics center enables proactive audit planning, risk assessments, and the ability to vet complaints across agencies for a more efficient fight against fraud, waste, and abuse. Law enforcement partners and the DOJ COVID-19 Fraud Enforcement Task Force rely on the PRAC’s data and investigative support to ensure fraudsters don’t get away with their crimes.
We’ve written a how-to guide to prevent fraud in the future, and will continue using our data analytics and investigative authorities to flush out fraudsters, recover additional taxpayer money, and prevent future funds from going where they shouldn’t.
|
|
|
Disclaimer: An indictment is a formal accusation of a serious crime. However, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
|
|
|
|
|
