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P A N D E M I C R E S P O N S E A C C O U N TA B I L I T Y C O M M I T T E E
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
ii
Pandemic Response Accountability Committee
Message from the Chair
It is my privilege to present the Pandemic Response
Accountability Committee’s (PRAC) Spring 2024
Semiannual Report to Congress. This report covers
the PRAC’s accomplishments from October 1,
2023 - March 31, 2024. After four years since the
onset of the pandemic and the PRAC’s creation, our
mission to promote transparency and coordinate
oversight of the federal government’s COVID-19
response remains more critical than ever. The deep
program insights, sophisticated data analytics tools,
and innovative oversight models the PRAC created
can be expanded to government spending outside
of pandemic relief, should Congress act to sustain
PRAC capabilities past our scheduled sunset in
September 2025. Faced with an unprecedented
volume of pandemic fraud, we built a data analytics
center, the Pandemic Analytics Center of Excellence
(PACE), which both supports fraud investigations
and uses those insights to inform audits and pre-
payment controls to prevent fraud before money
goes out the door. The time is now to preserve these
PRAC innovations and apply these fraud prevention
and detection tools to all federal spending.
If the PRAC’s analytics center had been in place
at the onset of the pandemic in March 2020,
we would have been able to conduct critical data
analysis before payments were made to help
prevent billions of dollars of wasted pandemic relief
funds through improper payments and fraud.
•
As of March 2024, the PACE has provided
investigative support to 47 federal law
enforcement and Office of Inspector General
(OIG) partners in 783 pandemic–related
investigations—all in less than three years since
the PACE’s inception.
•
With an estimated fraud loss of $2.03 billion
associated with these investigations, the PACE
has demonstrated an unbeatable return on
investment.
The PACE is a critical asset used by law enforcement
to root out issues like identity theft and fraud across
multiple pandemic-related programs. Our team
of data scientists work in collaboration with our
own PRAC Fraud Task Force, helping OIGs and law
enforcement pursue data-driven investigations of
pandemic relief fraud. The PRAC Fraud Task Force
includes 53 criminal investigators from across the
federal government to provide their expertise to
track down millions of stolen federal pandemic
dollars.
In a recent PRAC Fraud Task Force indictment,
a Massachusetts couple was charged with
fraudulently obtaining $2 million in pandemic relief
funds for their roofing company. They allegedly
transferred $1 million to their shared personal
bank account and used $825,000 for a down
payment on a house. Cases like this are boosted
by the innovative data analytics capabilities of the
PACE. Additionally, the Department of Justice (DOJ)
COVID-19 Fraud Enforcement Task Force (CFETF), of
which the PRAC is a member, published its annual
report in April 2024 that outlined the progress this
group has made with 3,500 individuals charged
and $1.4 billion in funds seized. The CFETF
report expressed DOJ’s support for the PRAC and
continuation of our data analytics efforts. We’re
proud to partner with the CFETF in this fight against
fraud, and we will continue to recover every penny
we can for the taxpayer.
The PRAC’s analytics platform is a good-government
initiative that should transition from fighting
pandemic-related fraud to preventing and curbing
waste in other government spending programs.
In November 2023, I testified along with other
federal oversight leaders before the Senate
Subcommittee on Emerging Threats and Spending
Oversight, Committee on Homeland Security and
Governmental Affairs. I shared the benefits of
using advanced data analytics to identify fraud and
iii
Pandemic Response Accountability Committee
encouraged Congress to make our data analytics
capability permanent to help watchdogs oversee
future emergency relief and recovery programs. It
is critical that Congress maintain the data analytics
capability of the PRAC beyond our sunset date of
September 2025 so that the Inspector General
community has an effective analytics platform to
oversee federal spending. It would be a wasted
opportunity to allow this fraud fighting tool to expire,
as happened with the Recovery Operations Center in
2015.
To this end, we are supportive of bipartisan
legislation, the Government Spending Oversight Act
of 2024 (S.4036), that passed out of the Senate
Committee on Homeland Security and Governmental
Affairs in April 2024. It is an important step forward
in maintaining a valuable fraud prevention and
fraud fighting tool by expanding the scope of where
we can help fight fraud, waste, and abuse. This
legislation will improve the integrity of federal
programs, make data analytics support and services
available to the entire Inspector General community,
and protect taxpayer dollars. This is critical as
the PRAC’s analytics platform transitions from
fighting pandemic-related fraud to fighting fraud in
all government spending. We look forward to the
legislation moving to the Senate floor and look for
continued bipartisan support in the House.
In addition, we continue to advocate for legislative
proposals that extend the statute of limitations
for pandemic programs, like the pandemic-related
unemployment insurance (UI) programs. Currently,
the statute of limitations for many pandemic-related
UI fraud investigations will expire in 2025 as the
statutes most often used to prosecute UI fraud have
a five-year limitation.
Our collaboration with our oversight partners
extends to the production of high-impact, cross-
agency insights. In March 2024, we published phase
two of our case study on six diverse communities’
experiences with pandemic relief funding. This
multi-part review is a collaborative effort among
10 of the PRAC’s member OIGs that highlights
the importance of coordinated oversight to better
understand the opportunities and challenges
communities had in distributing federal pandemic
relief. The report identifies key considerations from
the experiences of those six communities to improve
federal response programs.
We submit this Semiannual Report to Congress
at a crucial time in the lifespan of the PRAC. With
15 months remaining until our sunset in 2025,
we encourage Congress to maintain the valuable
fraud-fighting tools of our data analytics center
and expand its jurisdiction beyond pandemic relief
funds. That way, our insights from the pandemic
will better protect the integrity of federal programs,
safeguard taxpayer dollars, and ensure federal
spending reaches those it is intended to help—not
only in a crisis, but every day.
The Honorable Michael E. Horowitz
Chair, PRAC
Inspector General, U.S. Department of Justice
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Pandemic Response Accountability Committee
Contents
Message from the Chair
ii
Highlights
1
Background
2
PRAC Accomplishments
3
Part One–Oversight Products
4
Part Two–Investigating Fraud
7
Part Three–Pandemic Analytics Center of Excellence (PACE) Successes
11
Part Four–Promoting Transparency Through Our Website
12
PRAC Outreach
13
Key Insights Through Oversight Reports
14
Appendix A: Acronyms
15
Appendix B: Hotline Data
16
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
1
Background
Accomplishments
Outreach
Reports
Appendices
Highlights
$
$
$4
million
$
Highlights
PRAC Initiatives
2
PRAC led or coordinated reports
with 10 Offices of Inspectors General
783
investigations supported by
our data analytics center
8
PRAC speaking engagements
Oversight Reports
16
Offices of Inspectors General
105
Recommendations
33
Oversight reports
$8.6
Billion in monetary findings
PRAC Fraud Task Force
53
Task Force Agents from
16 Offices of Inspectors General
1
civil settlement
69
Subjects charged to date
12
sentencings
$11
million in restitution to the government
45
years of prison time
$4
million in forfeitures and seizures
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Accomplishments
Outreach
Reports
Appendices
Background
Background
Established in March 2020 by the Coronavirus Aid,
Relief, and Economic Security (CARES) Act, the PRAC
is a Committee of the Council of the Inspectors
General on Integrity and Efficiency (CIGIE). CIGIE
is an independent entity established within the
executive branch by the Inspector General Act of
1978, as amended, whose membership includes
the 75 statutorily created federal Inspectors
General (IGs).
The CARES Act identifies IGs from nine agencies
as statutory members of the PRAC. The Chair can
designate additional IGs to serve on the Committee
from any agency that receives pandemic funds or
is involved in the federal government’s response
to the COVID-19 pandemic. The IGs serving on the
Committee continue to perform their IG duties.
The PRAC is composed of 20 IGs (see PRAC
membership below). We are staffed by a full-time
Executive Director and 44 employees distributed
across several strategic directorates. The PRAC
promotes transparency and provides Congress and
the public with objective, reliable information about
the $5 trillion in COVID-19 pandemic relief dollars
at PandemicOversight.gov. We also work with IGs
to recommend program improvements, refer
matters for criminal investigations, and identify
misspent funds for recovery.
PRAC Membership
Name
Department or Agency OIG
Michael E. Horowitz, Chair
Department of Justice
Paul K. Martin, Vice Chair
U.S. Agency for International Development
Phyllis K. Fong
Department of Agriculture
Robert P. Storch
Department of Defense
Sandra D. Bruce
Department of Education
Christi A. Grimm
Department of Health and Human Services
Joseph Cuffari
Department of Homeland Security
Rae Oliver Davis
Department of Housing and Urban Development
Mark Lee Greenblatt
Department of the Interior
Larry D. Turner
Department of Labor
Eric J. Soskin
Department of Transportation
Richard Delmar
Department of the Treasury
Michael J. Missal
Department of Veterans Affairs
Jennifer L. Fain
Federal Deposit Insurance Corporation
Mark Bialek
Federal Reserve Board / Consumer Financial Protection Bureau
Allison C. Lerner
National Science Foundation
Hannibal “Mike” Ware
Small Business Administration
Brian D. Miller
Special Inspector General for Pandemic Recovery
Heather M. Hill
Treasury Inspector General for Tax Administration
Tammy L. Hull
U.S. Postal Service
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Outreach
Reports
Appendices
PRAC Accomplishments
The PRAC was established to serve the American public by promoting transparency and facilitating
coordinated oversight of the federal government’s COVID-19 pandemic response and associated spending.
We aim to serve as the eyes and ears of the American public, monitoring the government’s pandemic
response spending, and reporting accessible, timely, accurate, and comprehensive data that can be
translated into actionable insights.
We released our Strategic Plan for 2020 through 2025 in July 2020. The plan identified four goals to carry
out our mission and vision:
•
Promote coordinated, comprehensive oversight.
•
Prevent and detect fraud, waste, abuse, and mismanagement.
•
Promote transparency.
•
Ensure effective and efficient PRAC operations.
We present our key accomplishments during this reporting period that align with these goals.
Background
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Background
Outreach
Reports
Appendices
Part One–Oversight Products
Our efforts this period included the publication of two oversight products.
Agile Oversight
Although the majority of the $5 trillion in federal pandemic relief funding has been spent, transparency into the
use of these funds is more important than ever to ensure that the public, policymakers, and other stakeholders
can understand its impact and can leverage available data and information to improve future emergency
responses.
On March 5, 2024, we released “Agile Oversight in a Time of Crisis: Lessons Learned and Best Practices
in Conducting Oversight During the COVID-19 Pandemic.” This product compiles expertise shared at our
ground-breaking Agile Oversight Forum, an event that brought together over 1,500 oversight professionals
across federal, state, and local entities. When used in tandem with our previously issued Pandemic
Response Accountability Committee Agile Products Toolkit, this latest report on the topic can help oversight
organizations better determine how to adopt agile practices to keep our community’s work relevant and
timely. Along with issuing this report, we revamped our webpage to include all of our work related to agile
oversight--the toolkit, forum vignettes, and the new report—in one convenient location.
“While leaders may understand the importance of agile work, due to their visibility on
key issues, it is critical to provide necessary context and need for shifts to agile to their
broader staff to continue to engrain the mindset into the work the organization is doing.”
Inspector General Michael Horowitz, Department of Justice and PRAC Chair
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
5
Highlights
Background
Reports
Appendices
A Focus on Six Communities
On March 28, 2024, we issued “Pandemic Relief Experiences: A Focus on Six Communities.” In response to
the wide-reaching impacts of the COVID-19 pandemic, the federal government provided more than $5 trillion
in emergency relief across various programs. The report summarized the observations of our coordinated
oversight work with 10 of our PRAC member OIGs examining how six communities used the emergency relief
funds and whether the federal aid helped the communities. See Figure 1 for the locations of our review.1
Figure 1. Six Locations Selected for Review
1
We defined the communities by the geographic boundaries—the city boundary, the county boundary, or the reservation boundary. As such, our
work focused on more than the local government for each community. Our work included any pandemic relief and response program funding
provided to a local government, business, organization, entity, or individual within the geographic boundaries.
Outreach
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Background
Reports
Appendices
Our March 2024 report focused on insights and common themes gathered in site visits to the six
communities between May 2022 and December 2022 during conversations with local leaders involved in
the pandemic response at various government, business, and community-based organizations. We looked
at 22 federal programs and subprograms to see if the six communities’ use of these funds generally aligned
with pandemic program goals and objectives. The experiences of these communities and the actions for
emergency preparedness can help inform emergency relief and response programs in the future. We plan
to issue separate reports for each location that will focus on the specific programs and subprograms that
provided funding in each locale.
Figure 2. We know our community. We know our residents.
Outreach
Accomplishments
Using existing structures and communications channels makes it easier to
conduct outreach with the community and perform program administration
services during an emergency. If existing structures or channels can't be used,
federal agencies could consider partnering with states to subgrant funds to local
governments or other organizations.
Allowing for as many funding flexibilities as possible helps local officials, who
are familiar with the situation in their area, customize responses and address
challenges specific to their community. For example, flexibility with timeframes
for spending funds may allow a community to make strategic investments and
address longer-term concerns as it recovers from an emergency.
Being mindful of local staffing limitations when developing programs helps
communities follow federal program guidance, understand allowable uses of funds,
and track a myriad of other program requirements. This is especially important for
smaller communities with less administrative staff available.
Enhancing internet access and information technology modernization
efforts in rural communities helps them social distance, work remotely, and
streamline operations.
How can federal response programs improve?
We identified four considerations to enhance emergency preparedness now and in the future:
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
7
Highlights
Background
Reports
Appendices
Part Two–Investigating Fraud
Hold Wrongdoers Accountable
Led by the PRAC’s Investigative Services team, our PRAC Fraud
Task Force continues to be a critical investigative component in
the government’s fight against fraud in pandemic programs. For
example, to date, we have helped criminally charge 69 subjects
and assisted the federal government in recovering over $15
million in restitution, seizures, forfeitures, civil settlements, and
voluntary repayments.2
We continue to take part, along with 30 partner agencies, in the
whole-of-government effort coordinated by the DOJ’s CFETF. As
of May 2024, the efforts of the task force’s member agencies
have led to criminal charges against more than 3,500 defendants
for losses of over $2 billion, civil enforcement actions resulting
in more than 400 civil settlements and judgments of over $100
million, and over $1.4 billion seized or forfeited.3 The CFETF has
established five strike forces in California, Florida, Maryland,
Colorado, and New Jersey to focus on the most complex
and harmful pandemic fraud—often committed by overseas,
organized, or violent actors.
We are a member of DOJ’s International Organized Crime Intelligence and Operations Center, Organized
Crime and Drug Enforcement Task Force Fusion Center, and the National Unemployment Insurance
Fraud Task Force, which enables us to engage in case deconfliction and share and receive investigative
intelligence. The PACE serves as a key contributor for both the PRAC Fraud Task Force and DOJ’s CFETF
by using advanced analytics tools that incorporate multiple pandemic program data sources to uncover
suspicious network activity and identify anomalies that may indicate potential fraud. The PACE is a critical
asset used by law enforcement to root out issues like identity theft, and fraud that crosses program and
agency boundaries. As of March 2024, the PACE has provided investigative support to 47 federal law
enforcement and OIG partners on 783 pandemic-related investigations with nearly 10,000 subjects and an
estimated fraud loss of $2.03 billion.
The collaboration and partnership between the PRAC Fraud Task Force, CFETF, PACE, and our partners
continue to deliver results with successful investigations leading to arrests, convictions, and sentences.
The PRAC Task Force
The PRAC’s Fraud Task Force brings
together 50+ agents from more than
16 member OIGs to: enhance our
ability to coordinate investigations;
exchange information about fraud
schemes that we identified; and
share resources that enable agents
to support investigations across the
Inspector General community. This
task force, and other federal law
enforcement agencies, use the data
scientists and resources of the PRAC’s
data analytics center to uncover
patterns, irregularities, and red flags
that point to potential fraud.
Outreach
Accomplishments
2
Although the scope of this report covers through March 2024, we were not able to show the statistics by the end of that date. We provide these
statistics as of May 2024.
3
Although the scope of this report covers through March 2024, we were not able to show the statistics by the end of that date. We provide these
statistics as of May 2024.
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Background
Reports
Appendices
PRAC Fraud Task Force Cases
Recidivist Fraudster Sentenced To 25
Years in Prison for Over $10 Million
COVID-19 Loan Fraud Scheme
A federal court sentenced the defendant to 25 years
in prison for his participation in a sophisticated
identity theft and COVID-19 loan fraud scheme
involving over $10 million. From August 2020
through October 2021, the defendant and a co-
conspirator used false identities, sham tax records,
and corporate documents to obtain more than $1
million, and attempted to obtain more than $10
million, through 14 Paycheck Protection Program
(PPP) and Economic Injury Disaster Loan (COVID-19
EIDL) applications. In applying for these loans,
the two conspirators claimed stolen identities of
third parties and claimed full control of several
companies, which they purported, cumulatively,
employed more than 200 people and paid monthly
salaries of more than $3.2 million in wages. They
did not run these companies and submitted falsified
tax documents which were never actually filed with
the Internal Revenue Service. The duo also used the
majority of the over $1 million in stolen government
funds for cryptocurrency investments, the purchase
of stocks, cash withdrawals, and personal expenses,
including leasing luxury apartments and a Mercedes
car. They also opened investment accounts using
third parties’ stolen identities. The defendant
committed these offenses while facing charges in
a separate case filed in the Southern District of
New York involving fraud, identity theft, and money
laundering. The defendant was sentenced on
March 3, 2022, to 63 months in prison for fraud
and bank bribery scheme. In addition to the prison
term, which is to run consecutive to the defendant’s
term of 63 months in prison, the defendant was
sentenced to five years of supervised release and
ordered to forfeit $1,039,424 and pay restitution
of $1,120,462.40. The co-conspirator previously
pleaded guilty to major fraud against the United
States and was sentenced on October 17, 2022.
Lead PRAC Task Force Investigative Agency:
DOJ OIG
Other Investigative Partners: U.S. Secret Service,
Drug Enforcement Administration, New York Police
Department, Federal Aviation Administration, and
Federal Bureau of Investigation (FBI)
Medina and Cleveland Men Charged
with Fraudulently Obtaining $4.2
Million in COVID-19 Relief Funds
A federal grand jury returned a 13-count indictment
charging two individuals for their alleged roles in a
scheme to fraudulently obtain approximately $4.2
million in COVID-19 relief funds. The defendants
were charged with conspiracy to commit wire fraud
and money laundering offenses. From around
April 2020 to February 2022, the defendants
devised a scheme to defraud the Small Business
Administration (SBA) and financial institutions by
obtaining COVID-19 relief funds from the SBA’s
COVID-19 EIDL and PPP programs under false
pretenses. The defendants submitted PPP and
COVID-19 EIDL loan applications containing false
information for entities under their control and
submitted falsified tax and wage documents to
support these applications.
Lead PRAC Task Force Investigative Agency:
Department of Transportation (DOT) OIG
Other Investigative Partners: FBI, Internal Revenue
Service Criminal Investigation (IRS-CI), PRAC’s PACE/
Investigative Services
Outreach
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Background
Reports
Appendices
Hopkinton Couple Arrested for Multiple
Fraud Schemes
A federal grand jury indicted individuals for their
alleged roles in a scheme to fraudulently obtain
approximately $2 million in COVID-19 relief funds.
The defendants were charged with conspiracy to
commit wire, bank, and mail fraud, and to defraud
their workers’ compensation insurance carriers,
the SBA, and their mortgage lender. Between 2012
and 2020, the defendants, through their roofing
and construction company, allegedly avoided more
than $627,000 in workers’ compensation insurance
premiums by underreporting their payroll and paying
workers through a shell company. From around
2021 to 2022, the defendants submitted a loan
application on behalf of the construction company
to the SBA under the COVID-19 EIDL program
requesting funds for working capital and other
eligible business expenses under false pretenses.
After receiving the relief funds, the defendants
allegedly transferred $1 million of the funds to a
personal bank account they shared, from which
they used more than $825,000 for a down payment
toward a home. They also allegedly borrowed another
$770,500 from a mortgage lender to fund the
purchase of the same home but did not disclose
to their lender that they were using COVID-19 EIDL
funds for the down payment.
Lead PRAC Task Force Investigative Agency:
Department of Veterans Affairs (VA) OIG
Other Investigative Partners: FBI and IRS-CI
Grand Jury Indicts Two Central Ohio
Women in $2.8 Million COVID Relief
Fraud Scheme
A federal grand jury charged two defendants with
crimes related to fraudulently obtaining more than
$2.8 million in COVID-19 relief funds from SBA’s
PPP. One defendant allegedly received nearly $1.9
million in funds by fraudulently claiming an affiliation
with an Ohio pizza company. The defendant opened
new bank accounts in December 2020 prior to
registering a fictitious business name with the State
of Ohio in March 2021. The defendant allegedly then
fraudulently claimed affiliation with an uninvolved
restaurant chain in the area, falsely stated the
establishment date of the restaurant and number of
employees, and submitted altered bank records as
part of the application. When the restaurant chain
was notified that a PPP loan of nearly $1.9 million
had been filed in its name, individuals at the family-
owned business said their restaurants could not
justify such a large loan. Bank records indicate the
defendant improperly used PPP funds for personal
expenses to include nearly $26,000 on liposuction,
a $10,000 check for a “newborn baby gift,” and
more than $900,000 to purchase and renovate a
condominium. The investigations also disclosed that
the defendant claimed not to be under indictment
despite having had pending local theft charges and
had used the fraud proceeds to purchase vehicles
in Ohio and property in Australia for her personal
use. The defendant allegedly aided a co-conspirator
in fraudulently receiving more than $980,000 in
PPP loans. Additionally, both defendants allegedly
collected unemployment benefits after receiving
federal COVID-19 relief funds.
Lead PRAC Task Force Investigative Agency:
DOT-OIG
Other Investigative Partners: FBI, IRS-CI, and
PRAC’s PACE/Investigative Services
Outreach
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
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Highlights
Background
Outreach
Reports
Appendices
Accomplishments
California Man Charged with Federal
CARES Act Fraud
On March 8, 2024, the defendant was charged with
making false statements related to the CARES Act.
On or about April 2, 2021, the defendant through his
company allegedly made false statements to an
approved lender about a closed hotel to obtain an
SBA-backed PPP loan for $146,947.50. At the time
of the loan application, the defendant’s hotel had no
employees or payroll.
Lead PRAC Task Force Investigative Agency:
VA-OIG
Other Investigative Partners: Department of Labor
(DOL) OIG and U.S. Bankruptcy Trustee Office, PRAC’s
PACE/Investigative Services
New Orleans Man Pleads Guilty to
CARES Act Fraud
On January 30, 2024, the defendant pleaded guilty
to making false statements and money laundering
related to the CARES Act. On or about April 6,
2020, the defendant, on behalf of a business, made
false statements to an approved lender to obtain a
$122,100 PPP loan. On or about July 22, 2020, the
defendant stole $149,900 from the SBA by using
an application in the name of NexLevel ONE Realty.
Finally, the defendant committed two counts of
money laundering by using these ill-gotten funds to
buy two motor vehicles for family members.
Lead PRAC Task Force Investigative Agency:
VA-OIG
Other Investigative Partners: IRS-CI
Florida Man Pleads Guilty to
Defrauding SBA to Obtain COVID Relief
Loan while in Federal Custody
On January 10, 2024, the defendant pleaded guilty
to two counts of wire fraud. While under the control
and custody of the U.S. Bureau of Prisons and
residing in a halfway house in Florida, the defendant
allegedly applied for a COVID-19 EIDL loan, claiming
to own a business, which he did not, with revenue
of more than $200,000 in 2019. Based on these
false statements, the defendant received $74,000.
At sentencing, the defendant faces up to 30 years in
federal prison and a fine of up to $1 million.
Lead PRAC Task Force Investigative Agency: PRAC
Other Investigative Partners: PRAC’s PACE/
Investigative Services
Business Owner Indicted for CARES Act
Fraud Scheme
On January 31, 2024, a federal grand jury returned
an eight-count indictment charging the defendant
fraudulently obtained nearly $1.9 million in
COVID-19 EIDL funds for their business between
June 2020 and November 2021. The investigation
also alleged that the defendant fraudulently used at
least $900,000 of the COVID-19 EIDL proceeds for
their own personal benefit to purchase a residence,
parcels of land, a building, and a 2019 Chevrolet
Camaro.
Lead PRAC Task Force Investigative Agency:
DOT-OIG
Other Investigative Partners: Department
of Homeland Security, Homeland Security
Investigations
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
11
Highlights
Background
Reports
Appendices
Part Three–Successes of the Pandemic
Analytics Center of Excellence (PACE)
The PACE has more than four dozen data sources, with over one billion records from public, non-public, and
commercial data sources, each of which has specific rules governing their use. Some of these data sets
are shared across the OIG community. For example, we shared SBA non-public loan level data sets with
45 OIGs and law enforcement agencies as part of our effort to combat fraud detected in SBA’s PPP and
COVID-19 EIDL programs. Further, thanks to the hiring authority provided to the PRAC in the CARES Act, we
have been able to attract top data science talent from across the country. Not only has this aided us, but our
highly successful Data Science Fellows program has detailed 27 data scientists to 14 OIGs to support their
pandemic-related data analytics efforts. The sophisticated work of our data scientists and our data analytics
platform have been instrumental in advancing our efforts to identify improper payments and fraudulent
activity in pandemic programs.
Our experience and insights highlight the value of expanding data sharing agreements to better detect
and prevent fraud to protect the American public and taxpayer dollars. Our data scientists have developed
automated robotic processes for some of the tasks associated with monitoring pandemic relief spending.
These processes help identify flags and anomalies, which are then sent to our investigators for a closer look.
We have also developed risk models to help IGs identify high-risk recipients of pandemic funds. Additionally,
we have shared code or models (e.g., data transformation scripts, entity resolution code) with 13 OIGs to
help accelerate their analytic efforts.
Some of our successes this reporting period include:
•
Used graph analytics to generate investigative leads for the DOJ CFETF, with a focus on leads with a
higher number of subjects and potential fraud subject to recovery.
•
Built an analytic model for the Pension Benefit Guaranty Corporation OIG that was used to identify
overpayments of Special Financial Assistance funds. The risk model also supported a case in which the
U.S. DOJ negotiated a $127M settlement agreement with a pension fund related to an overpayment.
•
Completed our effort in support of Treasury OIG, where we developed a dashboard that was used by
auditors to evaluate the risk associated with prime and subrecipients of Coronavirus Relief Funds (CRF).
The model was successfully transitioned to Treasury OIG upon completion.
•
Developed entity resolution models that resolve entities cross-agency and cross-program using public
and non-public data sources. The entity resolution models enable the PACE to create accurate and
comprehensive risk profiles for recipients of pandemic funds and identify potentially high-risk entities
such as those that received funds across multiple pandemic programs.
•
Built a data sharing and risk analytics product for the oversight community called the Analytic Center
Pilot. The objective for the Pilot is to share data and analytic insights with partner OIGs in a secure
centralized platform to allow users to do three things: (1) pull down the relevant data they need, already
cleaned and integrated by PRAC data scientists; (2) search a single entity and get all relevant federal
Outreach
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
12
Highlights
Background
Appendices
Reports
information, including awards, linked entities, Single Audit findings, and other details; and (3) review
spending along with associated risk flags derived from the source datasets to support audit planning.
Upon development of the Pilot, testers from partner OIGs will be able to access the platform for a period
of 90 days. We will collect feedback, value, potential costs, and other lessons learned from the testers to
help inform next steps and future roadmap planning for this product.
Part Four–Promoting Transparency
Through Our Website
We continue to provide transparency into how pandemic funds have been spent. While most of the COVID-19
relief funds have already been spent, PandemicOversight.gov continues to provide frequent updates with the
latest data. For example, the All Pandemic Awards dashboard is updated daily. Here a user can find a daily
accounting of all pandemic spending.
Our website also provides popular ways for the public to learn about pandemic programs and
search for recipients using tools like our PPP borrower search. To gain insight into other elements of
PandemicOversight.gov that are most useful and meaningful for visitors, and to understand what content
users would like to see, we launched a customer satisfaction survey. With input from more than 3,000
visitors, we have learned about who visits our site, what they are interested in, and how we can continuously
improve user experience.
•
63 percent of visitors who answered the survey identified themselves as “Interested Citizens.” Other
visitor types include researchers, government (state, local, or federal) employees, and reporters or
journalists.
•
60 percent of respondents rated their overall experience with the website at a 4 or 5, on a scale of 1 to 5
(5 being the highest).
•
The most common content survey respondents were looking for was information on SBA’s PPP.
•
The PRAC strives to provide an excellent experience on our website without regard to the device through
which a user is viewing it. We are pleased to see that a vast majority of survey respondents (83 percent)
used a tablet or mobile phone to access our site.
We will continue to make improvements to the website based on the information we receive through our
survey and other feedback mechanisms.
Outreach
Accomplishments
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
13
Highlights
Background
Accomplishments
Reports
Appendices
PRAC Outreach
We proactively work to keep the public informed with public-facing events, email campaigns, and an active
social media presence. In this reporting period, we sent numerous email campaigns highlighting our work
and other resources to thousands of subscribers and critical stakeholders. For example, we highlighted
various pandemic-related fraud schemes in its monthly fraud feature series, PRAC Fraud Task Force case
details, a comprehensive impact report on pandemic programs and funding in six communities, and the
PRAC Chair’s response to the Senate’s bipartisan legislation “Government Spending Oversight Act of 2024.”
We continue to be committed to keeping the public, congressional stakeholders, and our partners informed
on our ongoing efforts in the oversight of pandemic-related fraud, waste, and abuse. We regularly provide
Congressional staff and members with updates on our work and are available to answer any questions they
may have.
In October 2023, we hosted a webinar that explored how federal and state agencies can better support
victims of identity fraud. This webinar was a follow-up to the September 2023 report we commissioned,
Identity Fraud Victim Redress Processes and Systems, which proposed a whole-of-government, victim-
centered approach to resolving such cases. Over 150 people attended the webinar to hear a panel of experts
discuss the increase in identity fraud during the pandemic, the victim experience, and recommendations
to improve the identity fraud redress process. We will continue to find opportunities to shed light on the
challenges the government faces and raise awareness of lessons learned that can reduce the negative
impacts of these challenges on people.
Our senior leaders and other staff have provided insights, lessons learned, and demos to other oversight
professionals through eight different speaking engagements this reporting period, including presentations
for the National State Auditors Association, Federal Audit Executive Council, Associations of Government
Accountants, the National Association of State Auditors, Comptrollers, and Treasurers, and CIGIE. These
engagements centered on topics such as the use of data analytics to detect fraud, waste, and abuse; the
underlying data sources, analytic approaches, risk indicators, and risk scoring considerations for the CRF;
importance and necessity for intergovernmental data and resource sharing; and sharing lessons learned
and best practices.
Our unique vantage point allows us to share our insights and lessons learned with other oversight entities at
the federal, state, local, and international level to ensure watchdogs can work together to protect American
taxpayer dollars both now and in the future. When we share our insights through platforms such as these,
we build new ways to ensure that our partners and other stakeholders can approach these challenges
effectively and support the public as best they can.
Outreach
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
14
Highlights
Background
Accomplishments
Appendices
Reports
Insights Through Oversight Reports
From October 1, 2023, through March 31, 2024, federal Offices of Inspectors General issued 33 oversight
reports related to the federal government’s COVID-19 pandemic response, and these reports identified over
$8.6 billion in monetary findings (e.g., questioned costs or funds put to better use).4 OIGs also made 105
recommendations to improve the government’s response to the pandemic and to future emergencies, such
as improving the government’s ability to ensure assistance funding reached the intended beneficiaries.
Oversight products issued during this reporting period help highlight the health and financial impacts on the
American public and the intended beneficiaries of assistance across different assistance programs. See the
following table for more information about the reports issued by our federal OIG partners. For a complete list
of all federal oversight reports issued, see Oversight.gov.
Federal Oversight Reports from October 1, 2023, through March 31, 2024
Office of Inspector General
Total Reports
Total
Recommendations
Total Monetary
Findings
Department of Commerce
1
2
$2,550,000
Department of Education
3
5
$0
Department of Health and Human Services
8
26
$15,671,958
Department of Labor
2
15
$0
Department of Transportation
1
8
$0
Department of Treasury
1
1
$300,000
Department of Veterans Affairs
1
0
$0
Federal Reserve Board & Consumer Financial
Protection Bureau
1
0
$0
Pandemic Response Accountability Committee
2
0
$0
Pension Benefit Guaranty Corporation
1
1
$0
Small Business Administration
4
15
$8,468,905,798
Special Inspector General for Pandemic Recovery
1
0
$0
Tennessee Valley Authority
1
3
$0
U.S. Agency for International Development
1
4
$0
U.S. Election Assistance Commission
3
22
$991,943
U.S. Treasury Inspector General for Tax
Administration
2
3
$0
Totals
33
105
$8,594,319,699
Outreach
4
These oversight reports include all reports, memorandums, advisories, and other products issued by the OIGs related to the COVID-19 response
funding and programs.
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
15
Highlights
Background
Accomplishments
Pandemic Response Accountability Committee
15
Appendix A: Acronyms
CARES Act
CIGIE
COVID-19
COVID-19 EIDL
DOJ
DOL
DOT
CFETF
CRF
FBI
IG
IRS-CI
OIG
PACE
PPP
PRAC
SBA
Treasury
UI
VA
Coronavirus Aid, Relief, and Economic Security Act
Council of the Inspectors General on Integrity and Efficiency
Novel coronavirus disease 2019
COVID-19 Economic Injury Disaster Loan
Department of Justice
Department of Labor
Department of Transportation
COVID-19 Fraud Enforcement Task Force
Coronavirus Relief Fund
Federal Bureau of Investigation
Inspector General
Internal Revenue Service Criminal Investigation
Office of Inspector General
Pandemic Analytics Center of Excellence
Paycheck Protection Program
Pandemic Response Accountability Committee
Small Business Administration
Department of the Treasury
Unemployment Insurance
Department of Veteran Affairs
Appendices
Reports
Outreach
Pandemic Response Accountability Committee
Semiannual Report to Congress
OCTOBER 1, 2023 - MARCH 31, 2024
16
Highlights
Background
Accomplishments
Pandemic Response Accountability Committee
16
Appendix B: Hotline Data
The PRAC is currently undergoing updates to our hotline platform. As a result, we are not reporting hotline
statistics this period.
Appendices
Reports
Outreach
For more information:
Lisa Reijula
Associate Director of Outreach and Engagement, PRAC
Lisa.Reijula@cigie.gov
Visit us at:
PandemicOversight.gov
Follow us at:
Report Fraud, Waste, Abuse, or Misconduct:
To report allegations of fraud, waste, abuse, or
misconduct regarding pandemic relief funds or programs
please go to the PRAC website at
PandemicOversight.gov.
A Committee of the
Council of the Inspectors General
on Integrity and Efficiency