In a shocking disclosure, the US Secret Service reported a minimum of $100 billion. The money was stolen from the COVID-19 relief fund in the US. Here’s all about the scandal.
What’s the scandal all about?
The US labor department revealed a huge scale fraud from unemployment benefits and COVID-19 relief fund. The agency reported recovering $1.2 billion in loan fraud and unemployment benefits. They also played a huge role in returning $2.3 billion in fraud amounts. The money totals from over 900 cases that were committed during the pandemic. As per Roy Dotson, the national pandemic fraud recovery coordinator, the estimation is based on data from the agency. Additionally, it includes data from Small Business Administration and, the Labor Department.
According to the Secret Service’s reports, the US Justice Department has prosecuted 150 people, seizing $75 million in fund scams related to paycheque protection. The US attorney for Virginia, Jessica Aber stated that since 2021, the agency charged 30 defendants with fraud-related similar schemes. Moreover, they were all related to the coronavirus pandemic. The frauds, connected to paycheque protection programs (PPP), unemployment insurance (UI) and, economic injury disaster loan (EIDL) programs.
More about the COVID-19 relief fund scandal
In the UI scam, the agency found that the criminal groups targeted covid funds by using stolen identities to file for benefits. The agency also focused on shutting down fraudulent websites. Additionally, in the PP fraud, the agency found that individual business owners created scams by inflating payroll expenses to get bigger loans. Additionally, serial fraudsters applied for several moans by using “false claims about business entities and income”.
“COVID-19 demands have created a climate for bad actors to pursue unique and considerable opportunities for fraud,” stated Michael J. Missal, the inspector general. The agency’s report also revealed that a particular person stole US mail addressed to over 150 individuals while stealing cheques worth $700,000 and $1,200 in stimulus payments.
