How the PRAC Fights Fraud
- Issuer
- Inspector general and oversight reports
- Document type
- Report
- Date
- 2025-03-25
- Case
- Report Prac Fraud Task Force 2 Pager 2025 03 25
Summary
A two-page Pandemic Response Accountability Committee (PRAC) summary titled How the PRAC Fights Fraud, dated March 25, 2025, describing the PRAC Fraud Task Force, which brings together agents from Offices of Inspectors General to investigate fraud in the COVID-19 EIDL, PPP and pandemic unemployment insurance programs. It states that, as of February 28, 2025, the Pandemic Analytics Center of Excellence (PACE) had supported 48 federal law enforcement and oversight partners on over 1,000 pandemic-related investigations involving more than $2.4 billion in estimated fraud loss. The document then tabulates public Task Force cases by program, state and potential fraud, including 14 people charged with defrauding the PPP of more than $53 million. Each case entry points to a DOJ press release, and a disclaimer states that defendants are presumed innocent until proven guilty.
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Full text
How the PRAC Fights Fraud
The Pandemic Response Accountability Committee (PRAC) was created to serve
the American public by promoting transparency and facilitating coordinated
oversight of the federal COVID-19 pandemic response. The PRAC Fraud Task Force
brings together agents from Offices of Inspectors General (OIGs) to investigate
fraud in pandemic relief programs, such as the COVID-19 Economic Injury Disaster
Loan (COVID-19 EIDL) program, the Paycheck Protection Program (PPP), and
pandemic unemployment insurance (UI) programs.
How data analytics power our investigations
The PRAC Fraud Task Force and many of our law enforcement partners are boosted by the PRAC’s innovative
Pandemic Analytics Center of Excellence (PACE), which uses advanced analytic tools incorporating multiple
pandemic program data sources to uncover suspicious network activity and identify anomalies that may
indicate potential fraud. As of February 28, 2025, the PACE has provided investigative support to 48 federal
law enforcement and oversight partners on over 1,000 pandemic-related investigations with over 23,000
subjects involving more than $2.4 billion in estimated fraud loss.
Notable public PRAC Fraud Task Force cases
Total potential Programs
Scheme details and DOJ press release link Highlights
fraud defrauded
$140K
A telecom CEO and his company pleaded guilty to defrauding the FCC of over
$100 million and for making false statements to obtain PPP funds which
$100M PPP
were used to buy jewelry, pay property taxes, and make donations to a
university. The CEO agreed to pay $1,758,339 to the SBA, and along with his
For Personal Use
Florida
company, agreed to pay a combined total of $109,637,057 in restitution.
Press Release
14 people were charged with defrauding the PPP of more than $53 million. 14
$53M PPP
They allegedly falsified information and provided doctored documents in
their applications. PACE analytics helped support case development.
Individuals
Texas
Press Release
A bank manager was sentenced for both UI and PPP fraud schemes. He
facilitated the submission of fraudulent applications for a business owner,
110
$12.4M
Kickbacks Including
which netted $12.4 million in stolen funds. In exchange, he received Playoff Tickets
PPP/UI
Missouri kickbacks that included Kansas City Chiefs playoff tickets.
Press Release
Two individuals were sentenced to five years and one year, respectively, for
PPP/
their roles in a fraud scheme in which they falsified payroll records and $620K
$7M COVID-19
created fake IRS tax documents for multiple companies to obtain more than
$7 million in PPP and COVID-19 EIDL relief funds. As part of the scheme,
Transferred
Virginia EIDL approximately $620,000 was transferred from one conspirator to the other.
Press Release
PPP/
Two individuals were charged with allegedly falsifying tax and wage 13
$4.2M COVID-19
documents to obtain approximately $4.2 million in PPP and COVID-19 EIDL
loans between April 2020 and February 2022.
Count Indictment
Ohio EIDL Press Release
An individual was charged with submitting at least seven fraudulent PPP
4
$3.1M PPP
loan applications for over $5 million in relief funds for four companies. He
ultimately obtained over $3.1 million in relief funds for what were allegedly
LLC Shell Companies
California shell companies.
Press Release
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.
PRAC Fraud Task Force cases continued
Total potential Programs
Scheme details and DOJ press release link Highlights
fraud defrauded
Two individuals were charged in a $2.8 million pandemic relief scheme in 1
$2.8M PPP
which they falsely claimed affiliation with a pizza chain employing
98 individuals. One was sentenced and the other is awaiting sentencing.
Pizza Chain
Ohio
Press Release
A couple was charged in two separate schemes, one in which they allegedly
defrauded the COVID-19 EIDL program. They allegedly misused funds by
$825KDown Payment
$2M
Massachusetts
COVID-19
EIDL
transferring over $1 million to a shared personal bank account and using
funds for a down payment on a home.
on a House
Press Release
A former Baltimore City Council candidate was convicted for making false
PPP/
statements about her businesses, including falsifying employee and
revenue totals to apply for relief funds. She submitted at least six fraudulent
6
Businesses
$1.6M COVID-19 applications each for PPP and COVID-19 EIDL funds, and used the funds for
personal expenses such as plastic surgery, home renovations, and other
Maryland EIDL
family expenses.
Press Release
An individual pleaded guilty for her role in a scheme involving at least 110 PPP
loan applications that all contained the same invoices and federal tax forms 110
$1.1M PPP
with the same business name and amounts. The defendant recruited several
individuals into the scheme and submitted the paperwork to secure the
PPP Loan
Applications
Louisiana
funding while taking kickbacks after the funds were delivered.
Press Release
PPP/
Two individuals were sentenced to 34 years combined for using stolen
identities, sham tax records, and corporate documents to apply for more than
34
$1M COVID-19 $10 million in PPP and COVID-19 EIDL funds, of which they secured more than
Years Combined
New York EIDL $1 million. The pair submitted a total of 14 fraudulent loan applications.
Press Release
Six individuals were sentenced for their roles in a fraud scheme to create fake
businesses and identities. The ringleader received 33 months and the group 6
$1M
Individuals &
was ordered to pay restitution of $1,655,738. This case was supported by the Fake Businesses
PPP PRAC’s data analytics center, which applies analytic and forensic technologies
Oklahoma
to identify clusters of fraud where egregious cases of theft occurred.
Press Release
PPP/
An individual was sentenced to five years of federal probation and restitution $47K
$902K COVID-19
for theft of PPP and COVID-19 EIDL funds, of which he used over $47,000 on
his personal mortgage. He also paid to settle False Claims Act allegations.
Personal Mortgage
West VA EIDL Press Release
A business owner agreed to pay $350,000 to settle a case in which he and 4
Businesses with
$350K PPP
a co-conspirator fraudulently obtained seven PPP loans by allegedly inflating
business income and payroll records for his four businesses.
Inflated Records
Virginia
Press Release
11 members of a 17-person fraud ring charged with stealing over $340,000 17
$341K UI
in pandemic unemployment benefits were sentenced and ordered to pay
restitution.
Person Fraud Ring
Virginia
Press Release
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.
For more information:
Lisa Reijula, Associate Director of Outreach and Engagement
Lisa.Reijula@cigie.gov
www.PandemicOversight.gov
File and source
- File
- REPORT_PRAC_Fraud-Task-Force-2-Pager_2025-03-25.pdf
- Size
- 344,872 bytes
- SHA-256
- 993a244d26a8b857f2dbb4fb398580b17e287c8a4299873315ea9cefec427edb
- Original
- www.pandemicoversight.gov