Pandemic Darlings The pandemic economy, in original documents
Home Source documents Hearing: COVID–19 Fraud: Law Enforcement's Response to Those Exploiting the Pandemic (Senate Judiciary, 2020)

Hearing: COVID–19 Fraud: Law Enforcement's Response to Those Exploiting the Pandemic (Senate Judiciary, 2020)

Summary

A hearing before the Committee on the Judiciary, United States Senate, on June 9, 2020, titled COVID–19 Fraud: Law Enforcement's Response to Those Exploiting the Pandemic. Chairman Lindsey O. Graham opens by saying the hearing concerns fraud related to the CARES Act, including scams against seniors selling masks that don't work. The witnesses named are Craig Carpenito, U.S. Attorney for the District of New Jersey; Bill Hughes, Associate Deputy Attorney General; Calvin Shivers, Assistant Director of the Criminal Investigative Division, FBI; and Michael D'Ambrosio, Assistant Director of the Office of Investigations, United States Secret Service. The contents list prepared statements and responses to written questions.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Congressional Hearing
Case
Chrg 116Shrg63175

Cite this document

“Hearing: COVID–19 Fraud: Law Enforcement's Response to Those Exploiting the Pandemic (Senate Judiciary, 2020).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/chrg-116shrg63175/, SHA-256 95ab6fe10dc52092f0e34f64ddbd04f74300a0678cd92a75d3b25e6025f6a618.

Full text

                                                                                                                                                 S. HRG. 116–721

                                                                     COVID–19 FRAUD: LAW ENFORCEMENT’S
                                                                 RESPONSE TO THOSE EXPLOITING THE PANDEMIC



                                                                                                     HEARING
                                                                                                            BEFORE THE


                                                                             COMMITTEE ON THE JUDICIARY
                                                                                UNITED STATES SENATE
                                                                                   ONE HUNDRED SIXTEENTH CONGRESS

                                                                                                          SECOND SESSION



                                                                                                           JUNE 9, 2020



                                                                                                   Serial No. J–116–54


                                                                                   Printed for the use of the Committee on the Judiciary




                                                                                                               (

                                                                                                     www.judiciary.senate.gov
                                                                                                        www.govinfo.gov

                                                                                              U.S. GOVERNMENT PUBLISHING OFFICE
                                                                       63–175                             WASHINGTON : 2026




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00001   Fmt 5011   Sfmt 5011   H:\DISTILLER\63175.TXT   DENISE
                                                                                              COMMITTEE ON THE JUDICIARY
                                                                                   LINDSEY O. GRAHAM, South Carolina, Chairman
                                                                 CHARLES E. GRASSLEY, Iowa,            DIANNE FEINSTEIN, California,
                                                                 JOHN CORNYN, Texas                      Ranking Member
                                                                 MICHAEL S. LEE, Utah                  PATRICK J. LEAHY, Vermont
                                                                 TED CRUZ, Texas                       RICHARD J. DURBIN, Illinois
                                                                 BEN SASSE, Nebraska                   SHELDON WHITEHOUSE, Rhode Island
                                                                 JOSH HAWLEY, Missouri                 AMY KLOBUCHAR, Minnesota
                                                                 THOM TILLIS, North Carolina           CHRISTOPHER A. COONS, Delaware
                                                                 JONI ERNST, Iowa                      RICHARD BLUMENTHAL, Connecticut
                                                                 MIKE CRAPO, Idaho                     MAZIE K. HIRONO, Hawaii
                                                                 JOHN KENNEDY, Louisiana               CORY A. BOOKER, New Jersey
                                                                 MARSHA BLACKBURN, Tennessee           KAMALA D. HARRIS, California

                                                                                    LEE HOLMES, Republican Chief Counsel and Staff Director
                                                                               PHILLIP A. BREST, Democratic Chief Counsel and Acting Staff Director




                                                                                                                     (II)




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00002   Fmt 5904     Sfmt 5904   H:\DISTILLER\63175.TXT   DENISE
                                                                                                               CONTENTS

                                                                                                            OPENING STATEMENTS
                                                                                                                                                                                           Page
                                                                 Graham, Hon. Lindsey O. .......................................................................................             1
                                                                 Feinstein, Hon. Dianne ...........................................................................................          2
                                                                     Prepared statement ..........................................................................................          35

                                                                                                                      WITNESSES
                                                                 Carpenito, Craig ......................................................................................................     3
                                                                     Prepared statement ..........................................................................................          38
                                                                     Questions submitted with no response returned ...........................................                              63
                                                                 D’Ambrosio, Michael ................................................................................................        7
                                                                     Prepared statement ..........................................................................................          51
                                                                     Responses to written questions .......................................................................                 75
                                                                 Hughes, William ......................................................................................................      2
                                                                     Prepared statement ..........................................................................................          38
                                                                     Questions submitted with no response returned ...........................................                             105
                                                                 Shivers, Calvin A. ....................................................................................................     5
                                                                     Prepared statement ..........................................................................................          56
                                                                     Questions submitted with no response returned ...........................................                             124




                                                                                                                              (III)




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000     PO 00000      Frm 00003       Fmt 5904      Sfmt 5904     H:\DISTILLER\63175.TXT           DENISE
JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00004   Fmt 5904   Sfmt 5904   H:\DISTILLER\63175.TXT   DENISE
                                                                        COVID–19 FRAUD: LAW ENFORCEMENT’S
                                                                                RESPONSE TO THOSE
                                                                             EXPLOITING THE PANDEMIC


                                                                                                 TUESDAY, JUNE 9, 2020

                                                                                                UNITED STATES SENATE,
                                                                                             COMMITTEE ON THE JUDICIARY,
                                                                                                               Washington, DC.
                                                                   The Committee met, pursuant to notice, at 10:08 a.m., in Room
                                                                 SD–106, Dirksen Senate Office Building, Hon. Lindsey O. Graham,
                                                                 Chairman of the Committee, presiding.
                                                                   Present: Senators Graham [presiding], Grassley, Hawley, Tillis,
                                                                 Ernst, Blackburn, Feinstein, Durbin, Whitehouse, Klobuchar,
                                                                 Blumenthal, Hirono, and Booker.

                                                                        OPENING STATEMENT OF HON. LINDSEY O. GRAHAM,
                                                                       A U.S. SENATOR FROM THE STATE OF SOUTH CAROLINA
                                                                   Chairman GRAHAM. Good morning, everybody. Thank you very
                                                                 much for attending the hearing, and I am sure we will have more
                                                                 come in throughout the morning.
                                                                   We have got four witnesses: Mr. Craig Carpenito, is that right?
                                                                 U.S. Attorney for the District of New Jersey; Bill Hughes, Associate
                                                                 Deputy Attorney General; Calvin Shivers, Assistant Director of the
                                                                 Criminal Investigative Division, FBI; Michael D’Ambrosio, Assist-
                                                                 ant Director of the Office of Investigations, United States Secret
                                                                 Service.
                                                                   So we talked about this before, fraud related to the CARES Act,
                                                                 scams out there against seniors selling masks that don’t work, try-
                                                                 ing to play on people’s fears. Unfortunately, when you try to do
                                                                 some good in the country, people take advantage of it, and we are
                                                                 going to hear from our folks today about what’s going on out there
                                                                 and some ideas about how to make sure it stops, if we can.
                                                                   Phase 4 will be coming. There’s a need, in my view, for a Phase
                                                                 4, so I would like to learn as much as we can about the Paycheck
                                                                 Protection Program, the economic impact for individuals, and sup-
                                                                 plemental unemployment benefits, how those programs are some-
                                                                 times being abused, and generally about what people are doing out
                                                                 there to scam Americans, particularly our seniors, and that’s the
                                                                 purpose of the hearing.
                                                                   And, with that, I will turn it over to Senator Feinstein.

                                                                                                                     (1)




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00005   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     2
                                                                          OPENING STATEMENT OF HON. DIANNE FEINSTEIN,
                                                                          A U.S. SENATOR FROM THE STATE OF CALIFORNIA
                                                                   Senator FEINSTEIN. Thank you, Mr. Chairman. I will put my
                                                                 statement in the record so you can proceed. Thank you.
                                                                   [The prepared statement of Ranking Member Feinstein appears
                                                                 as a submission for the record.]
                                                                   Chairman GRAHAM. Thank you.
                                                                   Anything from anybody?
                                                                   [No response.]
                                                                   Chairman GRAHAM. Okay. Let us start with Mr. Hughes.
                                                                 STATEMENT OF WILLIAM HUGHES, ASSOCIATE DEPUTY AT-
                                                                  TORNEY GENERAL, U.S. DEPARTMENT OF JUSTICE, WASH-
                                                                  INGTON, DC
                                                                   Mr. HUGHES. Good morning, Mr. Chairman, Ranking Member
                                                                 Feinstein, and Members of the Committee. Thank you for inviting
                                                                 me to appear before you today with several of my colleagues to dis-
                                                                 cuss Federal law enforcement efforts to deter, detect, and prosecute
                                                                 those who violate Federal law by exploiting the COVID–19 pan-
                                                                 demic and the economic dislocation it has caused.
                                                                   Before I focus on the topic of the day, I want to take a moment
                                                                 to address the tragic killing of George Floyd. As Attorney General
                                                                 Barr and Deputy Attorney General Rosen have previously said, the
                                                                 video images of the police conduct in this instance are incredibly
                                                                 disturbing. As the Attorney General previously announced, the De-
                                                                 partment is conducting a parallel and independent investigation
                                                                 into this incident in collaboration with the FBI to determine wheth-
                                                                 er Federal civil rights laws were violated. We intend to conduct
                                                                 that investigation as swiftly as possible and are not sparing any re-
                                                                 sources.
                                                                   We know that George Floyd’s death was not the first of its kind,
                                                                 and it exposes concerns that reach far beyond this specific incident.
                                                                 The outrage that Mr. Floyd’s death has triggered is real, legiti-
                                                                 mate, and deeply rooted. While the vast majority of police officers
                                                                 do their job honorably and in accordance with the law, we see in-
                                                                 stances like this one that erode confidence in the American crimi-
                                                                 nal justice system. America takes great pride in the rule of law
                                                                 being a bedrock principle, and as the Nation’s leading Federal law
                                                                 enforcement agency, the Department of Justice is committed to
                                                                 doing its part to seek justice for Mr. Floyd and his loved ones and
                                                                 to secure the confidence of all Americans and law enforcement.
                                                                   I know these issues are important to you. They are important to
                                                                 us. We welcome the opportunity to have discussions on this subject
                                                                 in the days ahead. But for today, for this hearing, our subject is
                                                                 the pandemic, the related economic disruption, and those that wish
                                                                 to exploit others for their own gain during tremendously chal-
                                                                 lenging times. The Attorney General has made clear that, notwith-
                                                                 standing the operational challenges the pandemic presents, it is
                                                                 critical that the Department is vigilant in detecting, investigating,
                                                                 and prosecuting wrongdoing relating to the crisis. It has become a
                                                                 high priority for us.
                                                                   Since the early days of the pandemic, we have been receiving re-
                                                                 ports of individuals and businesses using the crisis as an oppor-
                                                                 tunity to exploit both Americans and Government programs de-




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00006   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     3

                                                                 signed to assist Americans that have been hard hit. Leveraging the
                                                                 public’s concern about the pandemic, fraudsters utilize many
                                                                 schemes to separate Americans from the money in their bank ac-
                                                                 counts, from their Government benefits, and from their personally
                                                                 identifiable information.
                                                                   Other fraudsters and unscrupulous opportunists have gotten into
                                                                 the personal protective equipment trade, looking to defraud and
                                                                 price gouge health providers, first responders, and other essential
                                                                 workers who have no choice but to pay astronomical prices for pro-
                                                                 tective equipment that their health depends on.
                                                                   We are also seeing schemes that target taxpayer-backed relief
                                                                 programs that provide Americans and American businesses finan-
                                                                 cial help as they weather a disrupted economy. In particular,
                                                                 fraudsters are targeting the Payroll Protection Program, the Eco-
                                                                 nomic Impact Payment Program, and State unemployment benefit
                                                                 programs.
                                                                   The pandemic has also changed the cyber threat landscape. Child
                                                                 predators on the internet see widespread closing of schools, stay-
                                                                 at-home orders, and reliance on internet platforms as the primary
                                                                 means of communication as an opportunity to prey on children.
                                                                 Cyber criminals also see the widespread work-from-home posture of
                                                                 many American businesses as an opportunity to attack and infil-
                                                                 trate business computer networks, to disable systems or steal or
                                                                 hold hostage valuable data.
                                                                   As I am sure you will agree, it is reprehensible that anyone
                                                                 would use this crisis as an opportunity to profit at another person’s
                                                                 expense or otherwise prey on the public. The Department of Justice
                                                                 will not tolerate it, and our resolve is demonstrated by our efforts
                                                                 to coordinate across Department offices and components, to collabo-
                                                                 rate with other Government agencies, and to engage with industry
                                                                 and the public.
                                                                   We are already bringing cases to hold fraudsters accountable and
                                                                 to disrupt their schemes, and we will be doing so for the foresee-
                                                                 able future.
                                                                   I thank you again for the invitation, and I look forward to your
                                                                 questions.
                                                                   [The prepared statement of Mr. Hughes and Mr. Carpenito ap-
                                                                 pears as a submission for the record.]
                                                                 STATEMENT OF HON. CRAIG CARPENITO, UNITED STATES AT-
                                                                  TORNEY, DISTRICT OF NEW JERSEY, U.S. DEPARTMENT OF
                                                                  JUSTICE, NEWARK, NJ
                                                                    Mr. CARPENITO. Good morning, Chairman Graham, Ranking
                                                                 Member Feinstein, and Members of the Committee. I am Craig
                                                                 Carpenito, the United States Attorney for the District of New Jer-
                                                                 sey. I was appointed by Attorney General Barr to lead the Depart-
                                                                 ment’s Hoarding and Price Gouging Task Force. We are grateful for
                                                                 the privilege of appearing before you today to discuss the Depart-
                                                                 ment’s efforts to detect and prosecute those who, for their personal
                                                                 financial gain, seek to exploit the COVID–19 pandemic and the eco-
                                                                 nomic dislocation it has caused.
                                                                    The Attorney General and the Deputy Attorney General are lead-
                                                                 ing those efforts, and we are honored to help them in that vital
                                                                 task. We want to thank the Committee for its attention to these




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00007   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     4

                                                                 issues and for the good work of the Department of Justice to pro-
                                                                 tect the safety and security of our Nation during this unprece-
                                                                 dented crisis.
                                                                    Before I answer your questions today about price gouging, hoard-
                                                                 ing, and COVID–19 fraud, however, I would like to take a moment
                                                                 to acknowledge the senseless and tragic death of George Floyd at
                                                                 the hands of the Minneapolis police. I am proud of the people of
                                                                 New Jersey who have raised their voices in peaceful protest, seek-
                                                                 ing justice and reform in the name of Mr. Floyd and the other vic-
                                                                 tims like him. I hear and appreciate their call for change. In New
                                                                 Jersey, we have witnessed productive community and law enforce-
                                                                 ment partnerships in cities like Newark and Camden. These part-
                                                                 nerships have lowered crime and restored trust. While we in New
                                                                 Jersey are proud of these efforts, we recognize that we must and
                                                                 we will do more.
                                                                    Now let me turn to the reason I am here today. We’ve seen a
                                                                 broad range of illegal conduct throughout the country in these past
                                                                 few months. Our strategies and responses have evolved to meet
                                                                 new challenges as they arise, but our core philosophy has not. The
                                                                 Department will investigate and prosecute those who seek to treat
                                                                 COVID–19 as an opportunity to defraud the public and the Govern-
                                                                 ment.
                                                                    The Department has received many reports of individuals and
                                                                 businesses using the crisis to seek windfall profits at the expense
                                                                 of public safety and the health and welfare of the American people.
                                                                 These reports range from the sale of fake cures of COVID–19 on-
                                                                 line to hoarding and price gouging of critical medical supplies, to
                                                                 defrauding the CARES Act economic programs. The Department is
                                                                 aggressively investigating those reports and has already com-
                                                                 menced prosecutions.
                                                                    The Department’s attorneys work side by side with our partners
                                                                 at the Federal Bureau of Investigation and the United States Se-
                                                                 cret Service, as well as other Federal, State, and local agency part-
                                                                 ners.
                                                                    Make no mistake. The fight against COVID–19 is a fight to save
                                                                 precious lives every day. Our medical professionals and first re-
                                                                 sponders put their own lives at risk to stand between the virus and
                                                                 each of us. The personal protective equipment that they wear is the
                                                                 only shield they have to protect themselves as they bravely go face
                                                                 to face with the virus each day. It helps ensure our heroes do not
                                                                 fall victim to the disease. It also helps ensure that they do not
                                                                 bring it home to their families and their broader communities.
                                                                    Hoarding and price gouging in particular have inhibited front-
                                                                 line health care professionals, essential workers, and the public
                                                                 from acquiring the supplies they need to protect themselves from
                                                                 contracting the virus. Hospitals, first responders, and retail con-
                                                                 sumers have been targeted by individuals who view the scarcity of
                                                                 critical medical materials as a path to get rich quick. This conduct
                                                                 has disrupted our supply chains and markets and jeopardized the
                                                                 safety of our communities.
                                                                    In response, Attorney General Barr and Deputy Attorney Gen-
                                                                 eral Rosen assembled the Department’s Hoarding and Price
                                                                 Gouging Task Force to combat and prevent hoarding and price
                                                                 gouging. The task force is comprised of over 100 experienced Fed-




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00008   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     5

                                                                 eral prosecutors throughout the Nation’s 93 U.S. Attorney’s Offices
                                                                 and Department components here in Washington. The task force’s
                                                                 primary mission is to identify, investigate, and prosecute illegal
                                                                 hoarding and price gouging of crucial medical supplies, including
                                                                 personal protective equipment such as face masks that are essen-
                                                                 tial to preventing the spread of the virus. We do so in the larger
                                                                 context of the current public health crisis. The decisions the De-
                                                                 partment makes to open investigations or to bring charges are in-
                                                                 tended to help the public health response. Accordingly, the task
                                                                 force is focusing on profiteering, especially by market participants
                                                                 who sell scarce materials for excessive prices that far exceed their
                                                                 reasonable cost.
                                                                    The task force also is investigating counterfeit, misbranded, and
                                                                 defective medical supplies imported into the U.S. from abroad.
                                                                 These flawed products are entering our stream of commerce and
                                                                 creating safety hazards. We will use all of our tools at our disposal
                                                                 to identify these products and those who transact in them here and
                                                                 abroad and hold them accountable.
                                                                    The Department’s efforts are ongoing, but they have already
                                                                 yielded substantial results. We have brought several Federal crimi-
                                                                 nal cases across the country alleging price gouging fraud, mis-
                                                                 branding, and other charges. Just last week, the task force com-
                                                                 menced the Department’s first criminal prosecution against a for-
                                                                 eign manufacturer for sending defective and misbranded N95 res-
                                                                 pirator masks into the United States during the pandemic. Instead
                                                                 of protecting our medical professionals, these materials would’ve si-
                                                                 lently put them in harm’s way. We have also seized hoarded mate-
                                                                 rials and worked with agency partners to distribute them to those
                                                                 on the front lines to fight COVID–19.
                                                                    Thank you again for inviting us to address these important top-
                                                                 ics, and I look forward to answering your answers.
                                                                    [The prepared statement of Mr. Carpenito and Mr. Hughes ap-
                                                                 pears as a submission for the record.]
                                                                    Chairman GRAHAM. Mr. Shivers.
                                                                 STATEMENT OF CALVIN A. SHIVERS, ASSISTANT DIRECTOR,
                                                                  CRIMINAL INVESTIGATIVE DIVISION, FEDERAL BUREAU OF
                                                                  INVESTIGATION, WASHINGTON, DC
                                                                    Mr. SHIVERS. Good morning, Chairman Graham, Ranking Mem-
                                                                 ber Feinstein, and Members of the Committee. My name is Calvin
                                                                 Shivers, and I am the Assistant Director of the FBI’s Criminal In-
                                                                 vestigative Division. Thank you for the opportunity to appear be-
                                                                 fore you today to discuss the FBI’s response to COVID–19-related
                                                                 fraud.
                                                                    As head of the FBI’s Criminal Investigative Division, I oversee
                                                                 the FBI’s financial crimes and fraud against the Government pro-
                                                                 grams. In my role as the Assistant Director of the Criminal Divi-
                                                                 sion, I also oversee civil rights, color of law, and hate crime inves-
                                                                 tigations. I believe it’s important that I take a moment to address
                                                                 the recent events which have grabbed our Nation’s attention before
                                                                 I focus on the issues surrounding today’s hearing.
                                                                    I along with my colleagues at the FBI offer our sincerest condo-
                                                                 lences to the family and friends of George Floyd. The FBI’s Civil
                                                                 Rights Program has a long and proud history of protecting the




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00009   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     6

                                                                 rights of the American people. As the primary Federal agency re-
                                                                 sponsible for civil rights investigations, we at the FBI are com-
                                                                 mitted to utilizing our full set of investigative and intelligence ca-
                                                                 pabilities to address violations of Federal civil rights laws. In pur-
                                                                 suit of justice, we are conducting a thorough investigation into the
                                                                 actions that led to George Floyd’s death.
                                                                    The FBI recognizes the rights of citizens to exercise their First
                                                                 Amendment rights, and we will continue to work to protect our citi-
                                                                 zens and their ability to exercise those rights free of violence.
                                                                    Now I will shift back to the topic at hand.
                                                                    These are unprecedented times for most Americans. Due to
                                                                 COVID–19, people are understandably worried about their health
                                                                 and their livelihood. Although we are coming together in various
                                                                 communities and throughout the country, unfortunately there are
                                                                 individuals who seek to exploit our anxieties and fears by selling
                                                                 fake COVID–19 cures or vaccines. They are also peddling fraudu-
                                                                 lent investment opportunities in companies purportedly working to
                                                                 develop cures or vaccines for COVID–19. These were some of the
                                                                 earliest COVID–19 fraud schemes that the FBI identified.
                                                                    When the Attorney General issued a memorandum on March 16
                                                                 of this year directing U.S. Attorneys to prioritize COVID–19-re-
                                                                 lated fraud investigations and prosecutions, the FBI was ready.
                                                                 Within days, all 56 FBI field offices began working a wide range
                                                                 of investigations related to COVID–19 fraud schemes.
                                                                    As we began our investigations, we saw a number of different
                                                                 criminal schemes. We saw subjects hoarding personal protective
                                                                 equipment, or PPE, and attempting to sell it at exorbitant prices.
                                                                 We also saw people selling counterfeit or substandard PPE. The
                                                                 FBI worked closely with the Department of Justice and other law
                                                                 enforcement partners to conduct price-gouging investigations or
                                                                 seize counterfeit PPE.
                                                                    The CARES Act was designed to provide fast and direct economic
                                                                 assistance to families, American workers, and small businesses.
                                                                 However, there are individuals who seek to steal money from the
                                                                 people the CARES Act was designed to help. With the passage of
                                                                 the CARES Act, we began to see fraudsters shift their efforts to-
                                                                 ward exploiting the various programs created to relieve the severe
                                                                 economic effects of COVID–19. To effectively target this growing
                                                                 threat, the FBI formed a Payroll Protection Program Fraud Work-
                                                                 ing Group in coordination with the Department of Justice’s Fraud
                                                                 Section and the Small Business Administration’s Office of Inspector
                                                                 General. Through this effort, 116 investigations have been initi-
                                                                 ated, and over $126 million in potential fraud has been identified.
                                                                    We’re also beginning to see health care fraud. We are seeing
                                                                 fraudulent billing for services not received, charges for unnecessary
                                                                 procedures, and fraud related to telemedicine.
                                                                    In addition to fraud schemes, we are seeing crimes targeting our
                                                                 children. School closures have increased the presence of children
                                                                 online. In addition, social distancing restrictions and the isolation
                                                                 of children at home may afford criminal actors with an opportunity
                                                                 to sexually exploit vulnerable children. We are proactively coun-
                                                                 tering this threat through active investigations. We’re also working
                                                                 to educate the public regarding the warning signs and the danger
                                                                 of online sexual exploitation.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00010   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     7

                                                                    Although these threats are numerous and evolving rapidly, the
                                                                 FBI has and will continue to be vigilant in addressing these crimes
                                                                 and holding the individuals who commit these crimes accountable.
                                                                 We rely heavily on public education and awareness. When the gen-
                                                                 eral public is made aware of fraudulent schemes and criminal ac-
                                                                 tivity, they are better situated to report them. For that reason, I
                                                                 am incredibly appreciative of the opportunity to speak with you
                                                                 today.
                                                                    I thank you, Chairman Graham and Ranking Member Feinstein,
                                                                 for bringing attention to these issues, and I am happy to answer
                                                                 any questions you might have. Thank you.
                                                                    [The prepared statement of Mr. Shivers appears as a submission
                                                                 for the record.]
                                                                    Chairman GRAHAM. Mr. D’Ambrosio.
                                                                 STATEMENT OF MICHAEL D’AMBROSIO, ASSISTANT DIREC-
                                                                  TOR, U.S. SECRET SERVICE, DEPARTMENT OF HOMELAND
                                                                  SECURITY, WASHINGTON, DC
                                                                   Mr. D’AMBROSIO. Thank you, Chairman Graham, Ranking Mem-
                                                                 ber Feinstein, and distinguished Members of this Committee. Be-
                                                                 fore I begin, like my colleagues, I’d like to express my deep sadness
                                                                 and frustration with the tragic events of recent weeks. Having
                                                                 served in Government for nearly 29 years, nothing troubles me
                                                                 more than police misconduct. It severely erodes the essential trust
                                                                 necessary for law enforcement to effectively protect and serve our
                                                                 communities. Law enforcement must be held to the highest stand-
                                                                 ard. Racism and discrimination in any form is totally unacceptable.
                                                                 The Secret Service is committed and, indeed, oath-bound to ensur-
                                                                 ing that all Americans are afforded their constitutional rights to
                                                                 equal treatment under the law and to freedom of speech and as-
                                                                 sembly. Those rights are inalienable, and no duty is higher for a
                                                                 law enforcement officer than to protect them.
                                                                   Returning to the subject of this hearing, thank you all for invit-
                                                                 ing me to speak about the current wave of COVID–19-related crime
                                                                 and the work of the United States Secret Service to counter it.
                                                                   As early as February of this year, the Secret Service identified
                                                                 individuals and groups seeking to exploit the pandemic for illicit
                                                                 profit. We quickly took action to build the capacity and strategy
                                                                 necessary to combat what we anticipated would be a surge of crimi-
                                                                 nal activity.
                                                                   Major disasters have long invited fraud. From the terrorist at-
                                                                 tacks on 9/11 to Hurricanes Katrina and Maria and, indeed, well
                                                                 before, criminals throughout history have viewed public emer-
                                                                 gencies as opportunities to defraud the public. However, the fraud
                                                                 associated with the current COVID–19 pandemic presents a scale
                                                                 and scope of risks we have not seen before. Enabled by the inter-
                                                                 net, criminals all over the world are defrauding anxious citizens,
                                                                 distressed businesses, and Government stimulus programs alike.
                                                                   Since we released our first alert on March 4, we have observed
                                                                 a significant proliferation of criminal schemes. In particular, we
                                                                 have seen a surge in crimes targeting various economic relief pro-
                                                                 grams such as those provided by the CARES Act. Countering this
                                                                 fraud has become a core focus of our investigative work, and I ex-
                                                                 pect our investigative efforts will continue for years.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00011   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     8

                                                                    The Secret Service, in addition to our protective mission, is re-
                                                                 sponsible for the investigation of criminal violations of U.S. law
                                                                 pertaining to the U.S. financial system. As the Assistant Director
                                                                 of the Office of Investigations, I lead the over 160 field offices of
                                                                 the Secret Service, which includes our network of Electronic and
                                                                 Financial Crimes Task Forces, which conduct specialized investiga-
                                                                 tions of cyber and financial crimes.
                                                                    The immediate investigative focus of the Secret Service is to dis-
                                                                 rupt and deter criminal activity that could hinder an effective re-
                                                                 sponse to the pandemic by assisting organizations at risk of fraud
                                                                 and by working to recover any funds stolen from Americans.
                                                                 Longer term, we will ensure that those who have criminally ex-
                                                                 ploited this crisis are arrested and successfully prosecuted.
                                                                    I am pleased to report that the Secret Service has already seen
                                                                 tremendous success emerge from our investigative efforts to date.
                                                                 We have initiated over 100 criminal investigations and prevented
                                                                 approximately $1 billion in fraud losses. Among other law enforce-
                                                                 ment actions, the Secret Service has successfully disrupted hun-
                                                                 dreds of online COVID–19-related scams, halted the illicit sale of
                                                                 stolen COVID–19 test kits online, and is leading a nationwide ef-
                                                                 fort to counter a vast international scheme to defraud U.S. State
                                                                 unemployment systems. We have also released regular threat intel-
                                                                 ligence and alerts to provide industry, consumers, and our law en-
                                                                 forcement partners with best practices to defend themselves from
                                                                 the latest criminal threats.
                                                                    However, we are not achieving these results by ourselves. We
                                                                 can credit much of our success to the close partnerships we have
                                                                 built with a range of Government and industry partners. In par-
                                                                 ticular, we are working closely with the various agencies of the De-
                                                                 partment of Treasury, with the Cybersecurity and Infrastructure
                                                                 Security Agency and Homeland Security Investigations, as well as
                                                                 various offices of the Inspector General, particularly from the De-
                                                                 partment of Labor and Small Business Administration. And, of
                                                                 course, my colleagues to the right within the Department of Jus-
                                                                 tice, their COVID–19 Task Force, and the Federal Bureau of Inves-
                                                                 tigation have all been essential partners.
                                                                    I am committed to ensuring the Secret Service is doing our part
                                                                 on behalf of the American people to counter criminal activity ex-
                                                                 ploiting this pandemic. I look forward to answering your questions
                                                                 on how we can work together to address this threat.
                                                                    Thank you.
                                                                    [The prepared statement of Mr. D’Ambrosio appears as a submis-
                                                                 sion for the record.]
                                                                    Chairman GRAHAM. Thank you all.
                                                                    I will start with the Secret Service. Can you give me some exam-
                                                                 ples of how people are taking advantage of the Paycheck Protection
                                                                 Program?
                                                                    Mr. D’AMBROSIO. We primarily right now are focused on the un-
                                                                 employment insurance.
                                                                    Chairman GRAHAM. Okay. I am sorry. Tell me about unemploy-
                                                                 ment.
                                                                    Mr. D’AMBROSIO. So right now it is a mainly stolen identity theft
                                                                 investigation in which criminals are utilizing stolen PII, things
                                                                 that they have acquired on whether it be the dark web, whether




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00012   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     9

                                                                 it be network intrusions, and they are using that stolen informa-
                                                                 tion to apply for Social Security benefits, and probably across right
                                                                 now about 29 States across the country that we have seen. It’s not
                                                                 a very complex fraud. It’s the availability of PII out in public——
                                                                    Chairman GRAHAM. Got you.
                                                                    Mr. D’AMBROSIO [continuing]. That allows for this to occur.
                                                                    Chairman GRAHAM. Is there anything this Committee can do to
                                                                 help you in this endeavor? Do you have all the tools you need in
                                                                 current law?
                                                                    Mr. D’AMBROSIO. We have the tools right now that we need for
                                                                 this particular——
                                                                    Chairman GRAHAM. Do you have the resources?
                                                                    Mr. D’AMBROSIO [continuing]. We have the resources with the
                                                                 partnerships that we’ve created, whether it be the——
                                                                    Chairman GRAHAM. Okay.
                                                                    Mr. D’AMBROSIO. The Department of Labor as well as the——
                                                                    Chairman GRAHAM. The answer is yes, right? Okay.
                                                                    Mr. D’AMBROSIO [continuing.] The answer is yes.
                                                                    Chairman GRAHAM. Mr. Shivers, I appreciate what you all are
                                                                 doing at the FBI. When it comes to consumer fraud, what are you
                                                                 seeing most of?
                                                                    Mr. SHIVERS. Sir, on the consumer fraud——
                                                                    Chairman GRAHAM. Your mic, please. Thank you.
                                                                    Mr. SHIVERS [continuing]. All right. So as I mentioned in my
                                                                 opening, on the consumer fraud, initially private citizens were tar-
                                                                 geted through a number of schemes. Many of those schemes in-
                                                                 cluded offers to sell counterfeit COVID–19 cures or vaccines and,
                                                                 as I mentioned in the opening, also investment opportunities. And
                                                                 so what we see is a wide range of citizens being targeted through
                                                                 a number of means——
                                                                    Chairman GRAHAM. Is that problem getting better or worse, or
                                                                 is it about the same?
                                                                    Mr. SHIVERS [continuing]. I think COVID–19 obviously has
                                                                 shined a light on an opportunity for criminals to take advantage
                                                                 of a specific type of scheme, and so what we see is a number of
                                                                 ways that they are reaching individuals, through unsolicited phone
                                                                 calls or through unsolicited emails. So there’s a wide range. And
                                                                 what we ask the public to do is to make reports to ic3.gov, and that
                                                                 gives us greater visibility on the nature of threats and the num-
                                                                 ber——
                                                                    Chairman GRAHAM. Is there anything the Committee can do to—
                                                                 do you have the tools you need to deal with the problem?
                                                                    Mr. SHIVERS [continuing.] We do, sir.
                                                                    Chairman GRAHAM. Okay. Thank you.
                                                                    Mr. Carpenetti—is that right?
                                                                    Mr. CARPENITO. Carpenito, sir.
                                                                    Chairman GRAHAM. Carpenito. I am sorry. Tell us about the
                                                                 fraudulent sales going on out there. What’s going on in terms of
                                                                 overseas activity?
                                                                    Mr. CARPENITO. So what we have been seeing, sir, with regards
                                                                 to hoarding and price gouging is the trends have indicated to us
                                                                 that initially what we had was fraud relating to a spike in the
                                                                 prices of the materials. In this country we essentially had a supply
                                                                 chain that consisted of six major suppliers of these masks, the N95




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00013   Fmt 6633   Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     10

                                                                 masks, three-ply masks just like these, that were a commoditized
                                                                 product that were sold at relatively cheap prices, pennies, to our
                                                                 first responders and our medical professionals. They were easy to
                                                                 obtain, and they were something that I think were taken for grant-
                                                                 ed as part of our system.
                                                                    What happened was, just like any scenario we’ve seen in our
                                                                 country’s history, where we have a national crisis, there is always
                                                                 going to be that dark underbelly that rises to the top and tries to
                                                                 profit illicitly from the fears of folks that are most impacted by the
                                                                 pandemic. And what happened here was a bunch of interlopers in
                                                                 the market came in, obtained mass quantities of these materials,
                                                                 and held onto them, raised the prices, and price gouged. These
                                                                 masks went from being 50, 60 cents apiece to selling for $7, $8, as
                                                                 high as $25 in some cases.
                                                                    What we’ve done is we’ve gotten the word out about the invoca-
                                                                 tion of the Defense Production Act, the fact that it makes it illegal
                                                                 to do that, to price gouge, and we’ve opened up a series of inves-
                                                                 tigations. So we’ve been getting out there to try and find any stock-
                                                                 piles if they exist and get that material back into the supply chain.
                                                                    Chairman GRAHAM. Do you have the tools you need to continue
                                                                 down this path?
                                                                    Mr. CARPENITO. We do, sir. The Defense Production Act gives us
                                                                 the ability to bring this conduct to light and to remedy it.
                                                                    Chairman GRAHAM. Mr. Shivers, very quickly, can you tell us a
                                                                 little bit about the Paycheck Protection Program? What kind of
                                                                 problems have you seen there?
                                                                    Mr. SHIVERS. Yes, what we’ve seen are fraudulent filings from in-
                                                                 dividuals who are either exaggerating the number of employees
                                                                 that they may have within their business or perhaps they don’t
                                                                 have any employees. And so what they are doing is taking advan-
                                                                 tage of——
                                                                    Chairman GRAHAM. How do you find out about these cases?
                                                                    Mr. SHIVERS [continuing.] It’s a wide range. Part of it is outreach
                                                                 that the FBI conducts with the banking sector and with the private
                                                                 sector. And one of the things that we do is we’ve formed relation-
                                                                 ships with financial institutions and provided them with training,
                                                                 having an idea of what to look for, some of the fraud indicators.
                                                                 So part of it’s a relationship.
                                                                    The other part of that relationship is with the Small Business
                                                                 Administration’s Office of Inspector General, and so through coordi-
                                                                 nation with SBA’s OIG, we are also receiving information that
                                                                 helps us open cases.
                                                                    Chairman GRAHAM. Okay. Mr. Hughes, finally—and I am sorry
                                                                 to go over here—we are looking at a Phase 4, and I’m sure we will
                                                                 do one. If you could get back to the Committee—you don’t have to
                                                                 do it now in 30 seconds, but if there is anything you don’t have in
                                                                 terms of being able to deal with this, let us know. If you need more
                                                                 resources, let us know. But, generally speaking, how do we stand?
                                                                 Do you have the resources and tools necessary to oversee these pro-
                                                                 grams at this point in time?
                                                                    Mr. HUGHES. I think the answer is yes, and, Chairman Graham,
                                                                 we really appreciate the Committee’s support. There are a number
                                                                 of legislative proposals that have been in discussion, one of which
                                                                 is increasing deterrence by increasing sentencing guidelines for




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00014   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     11

                                                                 fraud committed during national emergencies. We look forward to
                                                                 continuing to discuss that——
                                                                    Chairman GRAHAM. Well, you give us a list of things you think
                                                                 would help.
                                                                    Chairman GRAHAM. Senator Feinstein.
                                                                    Senator FEINSTEIN. In my 26 years on this Committee, Mr.
                                                                 Chairman, I’ve never seen anything quite like this. If I understand
                                                                 it, the Federal Trade Commission has reported that, as of June 7,
                                                                 consumers have lost nearly $48 million due to coronavirus-related
                                                                 fraud. And this includes scam offers for vaccines, test kits, cures,
                                                                 air filters that were falsely advertised. That there’s been unaccept-
                                                                 able price gouging on basic items like hand sanitizer, sophisticated
                                                                 schemes targeting State governments.
                                                                    I understand in Washington State, for example, criminals used
                                                                 stolen personal information to file fraudulent unemployment
                                                                 claims. And it goes on and on.
                                                                    And then you have the Nigerian fraud ring known as Scattered
                                                                 Canary that’s used personal information likely obtained through
                                                                 prior consumer data breaches to fraudulently obtain millions of dol-
                                                                 lars. And it’s bizarre.
                                                                    Why is this so unique to have all of this? What is there in this
                                                                 program that attracts this kind of fraud effort?
                                                                    Mr. HUGHES. Thank you, Senator, for your question. I think
                                                                 there are two things going on here. One, you have a pandemic
                                                                 which is rightfully a major concern and basically every American’s
                                                                 life—there is a lot unknown still about COVID–19. And you also
                                                                 have an economic disruption which rightfully sparked serious re-
                                                                 sponse from the Federal Government in the way of economic relief.
                                                                 And so those two events simultaneously created a situation where
                                                                 you have many consumers out there who are anxious about their
                                                                 own health——
                                                                    Senator FEINSTEIN. But you’re so broad-based in your comments.
                                                                 Nothing is specific. Let me ask you a specific. Apparently, Wash-
                                                                 ington State was able to recover the $300 million that it had paid
                                                                 for fraudulent claims related to one scheme. What other big fraud
                                                                 cases are out there? And what is being done to stop it?
                                                                    Mr. HUGHES [continuing.] We are doing several things. First is
                                                                 that we have hundreds of investigations open all over the Depart-
                                                                 ment of Justice. We’re working with every single law enforcement
                                                                 agency in the executive branch. We are pursuing separate courses,
                                                                 investigations, monitoring trends about the criminal conduct re-
                                                                 garding each one of these programs. And some of the cases——
                                                                    Senator FEINSTEIN. Well, talk to me for a minute about Scattered
                                                                 Canary, this Nigerian fraud ring.
                                                                    Mr. HUGHES [continuing.] So, Senator, I am unable to discuss the
                                                                 specifics of any particular matter or any particular potential target.
                                                                 What I will say is that, especially with respect to unemployment
                                                                 benefits fraud, there is strong indication that some of the perpetra-
                                                                 tors are overseas entities or organizations and that they’re using
                                                                 money mules and other standard mechanisms to transfer money
                                                                 outside of the country.
                                                                    Senator FEINSTEIN. Is this a Nigerian fraud ring? Is Scattered
                                                                 Canary a Nigerian fraud ring?




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00015   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     12

                                                                    Mr. HUGHES. So, Senator, I am not personally knowledgeable as
                                                                 to that organization. I am happy to take that——
                                                                    Chairman GRAHAM. Does anybody know about this?
                                                                    Mr. D’AMBROSIO. Yes, Senator.
                                                                    Chairman GRAHAM. Well, tell us about it.
                                                                    Senator FEINSTEIN. Thank you.
                                                                    Mr. D’AMBROSIO. There has been some reporting on Scattered
                                                                 Canary being Nigerian, but I have no specific information to con-
                                                                 firm those particular activities.
                                                                    Senator FEINSTEIN. Could you tell us what you know?
                                                                    Mr. D’AMBROSIO. What I do know is that the fraud, again, as you
                                                                 stated, Senator, is essentially stolen PII that is out already in pub-
                                                                 lic or whether it’s particularly bought off the dark web for these
                                                                 particular crimes, and then they’re utilized to file fraudulent unem-
                                                                 ployment insurance claims. And that money has been seen
                                                                 transiting through money mules, as has already been said.
                                                                    Senator FEINSTEIN. Well, have these consumer data breaches
                                                                 fraudulently obtained hundreds of millions of dollars in unemploy-
                                                                 ment benefits from State governments? Could you gentlemen an-
                                                                 swer the question yes or no?
                                                                    Mr. D’AMBROSIO. I can’t answer the exact amount, Senator, that
                                                                 has been obtained. I can tell you that the Secret Service, based on
                                                                 an alert that we published in late May, the information that we re-
                                                                 ceived back from working with over 100 financial institutions, that
                                                                 it mitigated the loss of about $500 million in payments. And so
                                                                 that’s anecdotal information that we’ve received from the financial
                                                                 institutions.
                                                                    Senator FEINSTEIN. So how did Washington State recover the
                                                                 $300 million that it had paid in fraudulent claims related to one
                                                                 of these schemes? Can anybody answer that question?
                                                                    Mr. HUGHES. Senator, I don’t think we have that information at
                                                                 our fingertips. We can take it back and discuss with our colleagues.
                                                                    Senator FEINSTEIN. Because, you know, I’ve been here for a
                                                                 while, and, Mr. Chairman, I’ve never seen anything like it. It’s a
                                                                 program riddled with fraud.
                                                                    Chairman GRAHAM. Well, here’s what I believe. If you put $3 tril-
                                                                 lion out there, people will take advantage of it. And we had to do
                                                                 it. And I’ll share your frustration. It’s been a lot of generalities
                                                                 here. We would like to know what can we do, what’s going on,
                                                                 who’s doing it, and how widespread is it.
                                                                    Senator FEINSTEIN. That’s right.
                                                                    And could any of you gentlemen summarize what is going on and
                                                                 what it’s going to take to stop it?
                                                                    Mr. HUGHES. Senator, that’s an incredibly broad question. If you
                                                                 are talking just about CARES Act fraud, there is targeting of the
                                                                 Payroll Protection Program by fraudsters misrepresenting their
                                                                 small business or the characteristics of their small business or mis-
                                                                 representing that there is a small business at all. There are
                                                                 fraudsters who are using PII that they’ve accumulated or bought
                                                                 on the internet to apply for unemployment benefit programs that
                                                                 are State-sponsored. And there are a number of schemes relating
                                                                 to economic impact payments, again, relying on PII to apply for
                                                                 these payments or to defraud recipients of those payments, to hand
                                                                 those over to the fraudsters.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00016   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     13

                                                                   Senator FEINSTEIN. Well, let me ask you this. The FTC reported
                                                                 that as of June 7 consumers have lost nearly $48 million due to
                                                                 coronavirus-related fraud, and that includes scams for vaccines,
                                                                 test kits, miracle cures, air filters that were falsely advertised as
                                                                 capable of removing COVID–19 from the air in people’s homes.
                                                                   So there’re all these fraudulent business practices out there, ap-
                                                                 parently. What is being done to stop them, to arrest and convict?
                                                                   Mr. HUGHES. I think we’re vigorously investigating and using the
                                                                 tools that we have, both criminal and civil. When you bring a pros-
                                                                 ecution, you have forfeiture powers should there be a guilty plea
                                                                 and or a verdict at trial of guilty. On the civil side, you have a
                                                                 number of different statutes which allow you to to make the
                                                                 fraudster forfeit his ill-gotten gains. In order to disrupt, we have
                                                                 a statute that allows us to seek a TRO, a preliminary injunction,
                                                                 and ultimately an injunction. That is a quicker solution to stopping
                                                                 some of these schemes, many of which involve an online website
                                                                 which is the major marketing mechanism of some of these
                                                                 fraudsters.
                                                                   Senator FEINSTEIN. The information I have before me I’ve never
                                                                 had before me in any program in 26 years, and I wonder if it’s
                                                                 worth continuing. How do you stop this fraud?
                                                                   Mr. CARPENITO. So, Senator, maybe I can help respond by what
                                                                 the Department of Justice has done to try and police these pro-
                                                                 grams.
                                                                   First, I can tell you——
                                                                   Senator FEINSTEIN. Could you indicate to us how many cases
                                                                 have been brought, convictions sought, and convictions obtained?
                                                                   Mr. CARPENITO [continuing.] What I can tell you is we’ve re-
                                                                 ceived thousands of referrals through the network of task forces
                                                                 that have been put up. Right away, right when the pandemic came
                                                                 to be, Attorney General Barr I think showed very swift leadership
                                                                 in forming two task forces specific to COVID–19—one relating to
                                                                 general fraud related to COVID–19; the other, my task force, relat-
                                                                 ing to the hoarding and price gouging, which was meant to stand
                                                                 up very quickly to try and get the valuable PPE to the individuals
                                                                 who needed it as quickly as possible.
                                                                   Those programs each have approximately 100 prosecutors in
                                                                 each of them that are focusing on the COVID-related crime. It
                                                                 takes some time to work a white-collar case, and it has to be done
                                                                 covertly because we don’t want to do anything to disrupt the net-
                                                                 work of criminals before we can get a hold of where the money is,
                                                                 we can trace everything, especially for overseas cases. So we’re
                                                                 working them expeditiously.
                                                                   I can tell you there are hundreds of investigations in my task
                                                                 force alone and thousands nationally related to COVID fraud in
                                                                 general. We’ve also formed partnerships with our State Attorney
                                                                 Generals to share information. Sharing information in white-collar
                                                                 cases like this is critical to being able to get to the money, because
                                                                 at the end of the day that’s what this is about. We want to prevent
                                                                 individuals from sending payments or from having their bank ac-
                                                                 counts pillaged. We want to prevent Government programs from
                                                                 the same. And where it’s already happened, we need to cooperate
                                                                 with law enforcement to work with financial institutions to trace
                                                                 those transactions.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00017   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     14

                                                                    And I know it can be frustrating at times that we can’t get into
                                                                 specifics, but one of the reasons we can’t is, you know, our network
                                                                 operates through the ability to stay covert and find these resources,
                                                                 this money. Before we pounce and we go into court and go public
                                                                 on it, we have to have everything locked down if we are going to
                                                                 be successful.
                                                                    Chairman GRAHAM. Senator Feinstein, we will have a Round 2,
                                                                 but I think, Senator Grassley, you are next, sir.
                                                                    Senator GRASSLEY. Thank you.
                                                                    I’ve heard thus far that you’ve got the resources you need and
                                                                 you’ve got the tools that you need. I hope that that is right. Time
                                                                 will tell. If that’s true, that’s very nice.
                                                                    I want to start out with a compliment to the Justice Department
                                                                 in some things that are related to the pandemic and some things
                                                                 that might not be related. But I want to compliment the people
                                                                 that have filed price-fixing suits against Pilgrim’s Pride and
                                                                 Claxton Poultry, because I’ve always felt there is not enough com-
                                                                 petition in the agriculture industry. And also last week, the De-
                                                                 partment of Justice announced that it had issued what they refer
                                                                 to as ‘‘civil investigative demands’’ to the Nation’s four largest
                                                                 meatpackers, and those four largest ones have about 80 percent of
                                                                 all the packing industry and slaughter industry in the country as
                                                                 a whole. And there’s plenty of reason to believe that there might
                                                                 not be things right there. When a month ago the price of beef to
                                                                 the farmer went down about 60 percent, the price to the consumer
                                                                 went up about 25 percent.
                                                                    I sent a letter on March 31 to the secretary or to General Barr,
                                                                 and I’ve done that over a period of 20 years under both Republican
                                                                 and Democrat administrations, hardly getting any results whatso-
                                                                 ever. So you can imagine how surprised I am but thankful for this
                                                                 Administration taking those moves to make sure that the market-
                                                                 place is working in that industry, because farmers are very de-
                                                                 pressed by some of the things that are happening in that industry.
                                                                    So let me go to questions. On April the 7, Senator Klobuchar and
                                                                 I sent a letter to the Attorney General Barr expressing our serious
                                                                 concern about price gouging and hoarding of essential medical sup-
                                                                 plies. We asked for information from the Department’s implemen-
                                                                 tation and enforcement of the President’s Executive order. We’ve
                                                                 not received a response from the Justice Department, so I hope
                                                                 we’ll get it soon. It’s important that Congress have this data as we
                                                                 figure out how to best address the problems we face.
                                                                    We appreciate when agencies are quick to share information with
                                                                 us on our requests for that information. For example, the Secret
                                                                 Service has been very good about giving us periodic updates on the
                                                                 COVID–19-related fraud efforts. I encourage the Justice Depart-
                                                                 ment and the FBI to follow that example.
                                                                    So to any one of the three from the Justice Department that can
                                                                 respond, can you tell me when Senator Klobuchar and I will get a
                                                                 response to our April 7 letter?
                                                                    Mr. HUGHES. Senator, thank you for your question. I do not know
                                                                 the answer to that question. All I can assure you is that when we
                                                                 receive letters, they’re reviewed, and work starts on replies prompt-
                                                                 ly. Replies have to go through a rigorous process, so sometimes it
                                                                 can take longer than we would all like.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00018   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     15

                                                                    I defer to Mr. Carpenito on any substance that that letter was
                                                                 seeking to elicit. But we have your letter, and I understand it is
                                                                 being worked on, and I can check with OLA after this hearing as
                                                                 to the status.
                                                                    Senator GRASSLEY. Also, to anybody from the Justice Department
                                                                 and/or the FBI witnesses, I am interested in what difficulties or ob-
                                                                 stacles have you encountered when investigating and prosecuting
                                                                 these cases.
                                                                    Mr. CARPENITO. Thank you, Senator. As I said previously, thank-
                                                                 fully, because of the invocation of the Defense Production Act, it
                                                                 has given us the tools that we need to investigate and prosecute
                                                                 price gouging. As you know, the act is what made the act of hoard-
                                                                 ing with the intent to sell materials that were designated as scarce
                                                                 by the Department of Health and Human Services at exponentially
                                                                 higher prices than pre-pandemic prices criminal. Without that act,
                                                                 we would not be able to operate.
                                                                    The challenges that we have are the same challenges that you
                                                                 have in any sort of a disaster relief-related fraud situation. We
                                                                 faced it in New Jersey after Hurricane Sandy.
                                                                    As Senator Graham correctly stated, when you put this kind of
                                                                 money out into the ether, because you have to take care of society
                                                                 and, you know, take care of those who are desperately in need of
                                                                 it, the cockroaches are going to come out of the dark and into the
                                                                 light. There is always some underbelly that is going to try and de-
                                                                 fraud these programs.
                                                                    We are using our traditional tools and our traditional partners
                                                                 to root out those frauds. It takes a little bit of time, because what
                                                                 you see there is there is a delay in the exposure, right? We have
                                                                 to follow trends, follow the money, to be able to root it out.
                                                                    With regards to hoarding and price gouging, I think that we
                                                                 showed a very aggressive stance. We brought our first prosecution
                                                                 within a week of the invocation of the Defense Production Act. The
                                                                 President put it into play on March 23. On March 25, HHS des-
                                                                 ignated scarce materials. On April 1, we had arrested the first per-
                                                                 son for selling exponentially higher priced PPE. The charges we
                                                                 filed there were for making false statements to the FBI, because
                                                                 he was trying to hide his conduct, and assaulting a Federal officer,
                                                                 because the individual coughed in the face of the FBI agents who
                                                                 were looking to interview him and told them he had COVID–19 to
                                                                 back them away from him. But we were able to recover close to a
                                                                 million pieces of PPE and distribute them within 48 hours to front-
                                                                 line medical professionals.
                                                                    Senator GRASSLEY. Could I ask one more question?
                                                                    Chairman GRAHAM. Go ahead.
                                                                    Senator GRASSLEY. I do not know which one of you can answer
                                                                 this, but I believe that China’s decision to halt exports allowed
                                                                 criminals to sell fake and faulty goods to our hospitals, putting the
                                                                 health and safety of our workers at serious risk. Is it reasonable
                                                                 to believe that the increase in fake and faulty medical supplies
                                                                 were a direct result of China’s decision to stop exports to the med-
                                                                 ical—of medical supplies? And if not, why not? Whichever one of
                                                                 you can answer that.
                                                                    Mr. CARPENITO. Sure. I will take that question, Senator. So, Sen-
                                                                 ator, we can’t talk about any of our investigations that are non-




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00019   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     16

                                                                 public. What I can tell you is if you—I do not know if you noticed,
                                                                 but on Friday we filed a criminal complaint against a Chinese com-
                                                                 pany for the importation of fraudulent N95 respirators. In that
                                                                 case, what we allege is that a Chinese company sent to the United
                                                                 States knowingly false materials. How were they false? They pur-
                                                                 ported to be N95 respirators that were licensed by the FDA and by
                                                                 NIOSH, which is the licensing body for these materials that make
                                                                 them the most attractive to medical professionals.
                                                                    The N95 respirator has been so important here because what
                                                                 medical professionals say is that you need that 95 percent filtration
                                                                 to protect our doctors, our nurses, our first responders from inter-
                                                                 acting directly with the virus. These materials were imported into
                                                                 the U.S. with the intent to sell them to medical professionals, and
                                                                 when we seized them, they did not look to us as though they were
                                                                 authentic materials. We worked with the FBI, the FDA, and Cus-
                                                                 toms and Border Patrol. We had the materials tested. They failed
                                                                 that filtration test. And we do intend to continue to investigate any
                                                                 importation of fraudulent materials, and I think you can plan to
                                                                 see additional cases coming in the future.
                                                                    Chairman GRAHAM. Senator Durbin.
                                                                    Senator DURBIN. Thanks, Mr. Chairman.
                                                                    Mr. Carpenito, you talked about putting $3 trillion on the table
                                                                 and watching the cockroaches come in. In your testimony you’ve
                                                                 identified six six prosecutions under the PPP Act so far. Four and
                                                                 a half million loans have been issued so far.
                                                                    So let me ask you, are you just getting started? Or is that it for
                                                                 cockroaches? It strikes me that unless you have a pretty powerful
                                                                 statement pretty early on, some of the adolescent efforts being
                                                                 made to qualify for PPP loans are just going to continue apace.
                                                                    Mr. HUGHES. Senator, if you do not mind, I will address the PPP.
                                                                 So with that program, there are number of ways that we get refer-
                                                                 rals of cases to investigate and potentially prosecute. One is just
                                                                 walk-ins. As the FBI will tell you, they have field offices around
                                                                 the country, and complainants will walk in saying that they’re
                                                                 aware of some wrongful conduct with respect to the program.
                                                                    A second source is data that we share among Federal agencies.
                                                                 I can’t get into more specifics on that.
                                                                    Senator DURBIN. I have a limited amount of time. How you col-
                                                                 lect it and get your leads is important, but not critical to answering
                                                                 my question. Is this pace of six prosecutions after several months
                                                                 and 4.5 million loans indicating you are just getting started, or this
                                                                 is the pace that you think will warn America not to try to cheat
                                                                 the Government?
                                                                    Mr. HUGHES. I think we’re just getting started, and for the fore-
                                                                 seeable future we will be bringing these cases. The limitation peri-
                                                                 ods on this conduct are anywhere between 5 and 10 years. And we
                                                                 are engaging extensively to ensure that the public understands the
                                                                 serious consequences of exploiting this program.
                                                                    Senator DURBIN. I certainly hope whatever you do, you continue
                                                                 this effort, but do it more publicly with more volume, calling atten-
                                                                 tion to it. This exploitation that is spelled out in your testimony of
                                                                 six is almost laughable.
                                                                    Mr. HUGHES. I can assure you, Senator, there are plenty of inves-
                                                                 tigations currently going on.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00020   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     17

                                                                    Senator DURBIN. These are not thoughtful, conniving individuals.
                                                                 They’re just silly efforts to exploit the Government in the belief
                                                                 that it is an easy thing to do. I mean, to invent companies, invent
                                                                 payrolls—I mean that seems to me to be fairly traceable.
                                                                    So let me go to another aspect. The Chairman just stepped back
                                                                 in. I am glad he is here because I wanted him to hear this. When
                                                                 I got briefed a few years ago by major corporations in the United
                                                                 States, they told me that retail theft was so massive in this country
                                                                 that products that were made exclusively by one company were
                                                                 being sold in volume on the internet by sellers that went unidenti-
                                                                 fied and they had to be stolen. They were only made by one com-
                                                                 pany. They had to be stolen from a warehouse or in the chain of
                                                                 commerce somewhere. They were being sold by the hundreds. It
                                                                 wasn’t just a casual sale. And when these companies went after
                                                                 this theft ring, they were stopped cold by Amazon, Facebook, and
                                                                 eBay, who said, ‘‘We have no obligation to disclose the names of our
                                                                 sellers. Even if they are fencing stolen goods, no obligation to dis-
                                                                 close the names of our sellers.’’
                                                                    You made a reference, Mr. Carpenito, to profiteering online with
                                                                 marketplace platforms like Amazon and Facebook. On March 25, a
                                                                 group of 34 State attorneys generals wrote to those three compa-
                                                                 nies and other online marketplaces to urge them to do more to
                                                                 crack down on price gouging on their platforms, including urging
                                                                 the companies to create mechanisms to allow consumers to report
                                                                 suspected price gouging.
                                                                    The question is simple. What kind of cooperation are you getting
                                                                 from Amazon, Facebook, and eBay when it comes to those who are
                                                                 using the internet to sell products that are misrepresenting their
                                                                 health qualities or their application in COVID–19?
                                                                    Mr. CARPENITO. Thank you, Senator. I can tell you that from day
                                                                 one in the formation of the task force, we engaged with private cor-
                                                                 porations, including online retailers, to talk to them about what
                                                                 their policies were with regards to price gouging, how they identi-
                                                                 fied those instances, and sought to create a referral relationship
                                                                 with those retailers.
                                                                    Senator DURBIN. How are you doing?
                                                                    Mr. CARPENITO. Without getting into specifics because there’s
                                                                 nothing public, I can tell you that we have been cooperating and
                                                                 that we have received referrals from those platforms.
                                                                    Senator DURBIN. So now they are disclosing sellers when you be-
                                                                 lieve that they have violated the law?
                                                                    Mr. CARPENITO. Again, I feel constrained by Department policy
                                                                 on talking about nonpublic investigations, but what I can tell you
                                                                 is that we have had contact with them, we have engaged, and we
                                                                 are working cooperatively with them on referrals.
                                                                    Senator DURBIN. They stonewalled us for years on retail theft,
                                                                 saying—eBay in particular—it’s none of your damned business
                                                                 who’s selling what, even if it’s clearly stolen goods. And if you are
                                                                 telling me we have got a breakthrough here when it comes to this
                                                                 pandemic and national emergency of those who are trying to sell—
                                                                 misrepresent products on the internet, that you now have the co-
                                                                 operation of these sales places, these marketplaces, I think we need
                                                                 to know one way or the other whether you do or don’t.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00021   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     18

                                                                    Mr. CARPENITO. What I can tell you, sir, is—I don’t know if I
                                                                 would use the term ‘‘breakthrough.’’ What I can tell you is that we
                                                                 have had contact with these companies, we have sought their co-
                                                                 operation and asked them to make any referrals of anyone who is
                                                                 hoarding or price gouging the designated materials underneath the
                                                                 HHS order, and we have active relationships with at least some of
                                                                 the companies that you mentioned.
                                                                    Senator DURBIN. Mr. Chairman, I am going to quit here. I went
                                                                 a little longer than I should’ve. But let me tell you, Senator Cas-
                                                                 sidy and I have introduced a bill called the ‘‘INFORM Consumers
                                                                 Act,’’ and it gets to the bottom line here, that Amazon, Facebook,
                                                                 eBay have to disclose to law enforcement when there is the obvious
                                                                 sale in their marketplace of goods that are either stolen or being
                                                                 misrepresented to the consumers of America, for example, NIOSH-
                                                                 cleared products and it turns out it’s a big old lie. Some of these
                                                                 places in the past would not even tell you who the sellers were.
                                                                 They claimed it is confidential and private.
                                                                    Chairman GRAHAM. Well, I think it is a good question, so, Mr.
                                                                 Carpenito?
                                                                    Mr. CARPENITO. Senator, what I can tell you——
                                                                    Chairman GRAHAM. Would the bill help that he is talking about?
                                                                 Is it a problem?
                                                                    Mr. CARPENITO [continuing.] In my experience the Department of
                                                                 Justice can use process, we can send subpoenas; we have mecha-
                                                                 nisms to obtain that information, when justified, where we see in-
                                                                 dications of fraud or any indications that there has been wrongful
                                                                 conduct.
                                                                    Senator DURBIN. This is a new development if you do, and I will
                                                                 tell you, Home Depot came to me, no small company, and said,
                                                                 ‘‘Stolen goods with our brand, made only by us, sold on eBay in vol-
                                                                 ume, and they won’t tell us who is selling it.’’ If that’s changed, this
                                                                 is a breakthrough, and I——
                                                                    Chairman GRAHAM. Yes, I agree. So see if you can followup.
                                                                    Mr. CARPENITO [continuing.] Will do, sir. Thank you.
                                                                    Chairman GRAHAM. Senator Tillis.
                                                                    Senator TILLIS. Thank you, Mr. Chairman. Thank you, gentle-
                                                                 men, for being here and for the work you are doing.
                                                                    I was actually pleased to hear you all bring up, and a number
                                                                 of the Members, focusing on counterfeit, the threat of counterfeit
                                                                 goods. That’s something I have focused a lot on as Chair of the In-
                                                                 tellectual Property Subcommittee. This is not something new to the
                                                                 COVID response. I literally saw a biking helmet that was marketed
                                                                 as one of the most protective if you bought it from Specialized, it
                                                                 did the job. I saw somebody just put their foot on this helmet and
                                                                 it crushed before a Senate Committee. There are a lot of counterfeit
                                                                 products coming from China that are clearly a threat to our public
                                                                 health, and now it’s only on steroids in response to the COVID pan-
                                                                 demic.
                                                                    One question or a couple of questions I have. You’ve talked about
                                                                 the PPEs and the N95 masks. Other personal protective equipment
                                                                 is something that we have got to focus on, but I am also worried
                                                                 about counterfeit medications potential when we have break-
                                                                 throughs on therapeutics, counterfeit versions of those. They may




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00022   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     19

                                                                 actually fit the bill, but not being distributed according to licenses.
                                                                 In other cases, they may just be inadequate or ineffective.
                                                                    I think the same thing, the same risk, could hold true in terms
                                                                 of test kits and some of the other materials that we’re putting to-
                                                                 gether for the COVID response.
                                                                    Can you tell me a little bit about how we’re specifically focusing
                                                                 on that and whether—my suspicion is China is the greatest threat,
                                                                 but any other jurisdictions that we should be looking at?
                                                                    Mr. HUGHES. Let me just address briefly pharmaceuticals and
                                                                 testing, and I’ll allow Mr. Carpenito or the rest of the panel to ad-
                                                                 dress PPE.
                                                                    We’re working very closely with the FDA. They’ve taken a more
                                                                 flexible regulatory approach to help spur innovation in the medical
                                                                 device and the pharmaceutical space. The types of crimes in that
                                                                 area that we are focusing on are the obvious scams, the clearly
                                                                 fraudulent products or medications. We are trying to disrupt those
                                                                 quickly, and largely by bringing an injunction while a criminal in-
                                                                 vestigation is still going. Some of the cases that we have brought
                                                                 so far stopped a scam selling ozone gas as a treatment, unregis-
                                                                 tered pesticides, colloidal silver, and other treatments that were
                                                                 sold and marketed as either cures for or effective prevention meas-
                                                                 ures for COVID–19.
                                                                    Senator TILLIS. If others of you want to chime in, is this a China
                                                                 problem, or do we have other jurisdictions that we have a similar
                                                                 threat in terms of counterfeit products?
                                                                    Mr. HUGHES. The cases I was referring to are domestic cases, but
                                                                 I will defer to Mr. Carpenito on PPE.
                                                                    Mr. CARPENITO. Once again, I can tell you what we see trend-
                                                                 wise, and what we see trend-wise is we have numerous investiga-
                                                                 tions, and we have seen trends that there is the importation of ma-
                                                                 terials that are either counterfeit, misbranded, or just completely
                                                                 fraudulent. Those were the three buckets that——
                                                                    Senator TILLIS. Primarily from China?
                                                                    Mr. CARPENITO [continuing.] What I can tell you is that we have
                                                                 one publicly available prosecution that I can talk about where we
                                                                 have filed a criminal case in the Eastern District of New York
                                                                 against a Chinese company that we believe intentionally sent
                                                                 fraudulent materials.
                                                                    Senator TILLIS. And the Chinese company is a government-
                                                                 owned enterprise?
                                                                    Mr. CARPENITO. I believe that is the case in China, sir.
                                                                    Senator TILLIS. I want to move on to something else. I want to
                                                                 keep to my time. I have a Committee markup I have to run to. But,
                                                                 Mr. Shivers—right? I want to make sure I got that right. I butcher
                                                                 names repeatedly here.
                                                                    Mr. SHIVERS. That is correct.
                                                                    Senator TILLIS. First off, I want to thank you for the work, and
                                                                 I did get to listen to your testimony in my office. But can you tell
                                                                 me about other things? I was talking about some of the test kits
                                                                 and other things. Can you see any patterns specifically from for-
                                                                 eign jurisdictions? We talked about domestic production, and that’s
                                                                 important for us to look at, but foreign jurisdictions that we should
                                                                 be focused on and potentially create consequences coming out of
                                                                 legislation from the Senate?




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00023   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     20

                                                                    Mr. SHIVERS. So our investigations are not focused on importa-
                                                                 tion. We are primarily looking for hoarding and price gouging of
                                                                 PPE and also counterfeit PPE. So through the course of investiga-
                                                                 tion, we may discover that the PPE that we’ve seized is either sub-
                                                                 standard or counterfeit.
                                                                    Senator TILLIS. Okay.
                                                                    Mr. SHIVERS. And so we would address it after that. So we work
                                                                 with not just our Federal partners but State and local partners to
                                                                 develop those investigations. And so, again, what we’ve seen is
                                                                 some of the PPE that we’ve seized has been counterfeit.
                                                                    Senator TILLIS. Well, I want to keep close to the time. This is
                                                                 just a request. You don’t have to respond to it. But I want to thank
                                                                 Senators Blumenthal, Cornyn, and Sasse who joined on a letter to
                                                                 the FBI and CISA to give us a briefing on hacking. I don’t know
                                                                 if you have seen that letter, but I think it would be very helpful
                                                                 for us to figure out, particularly with Chinese-affiliated hackers,
                                                                 some of the threats that we have there. That may be, Mr. Chair-
                                                                 man, something we can do as a Committee, but if not, I know there
                                                                 are a number of Senators that would like to get together and get
                                                                 a briefing of the Committee on that and the threats that we should
                                                                 be updated on.
                                                                    Mr. SHIVERS. We can coordinate that.
                                                                    Senator TILLIS. Yes, if we can get that done sooner rather than
                                                                 later, I would like for the FBI and CISA to be represented in that
                                                                 meeting.
                                                                    Thank you.
                                                                    Chairman GRAHAM. Senator Whitehouse.
                                                                    Senator WHITEHOUSE. Thank you, Chairman. If somebody could
                                                                 dial down my volume. There we go that’s how I like it.
                                                                    I want to ask about unemployment insurance, but before I do, I
                                                                 have to react to, Mr. Hughes, your statement about your policy for
                                                                 answering letters. I do not know what is going on over at the De-
                                                                 partment, but I detect a policy of not answering questions for the
                                                                 record from this Committee and not answering letters from this
                                                                 Committee. When we had Mr. Rosenstein down in the hot seat
                                                                 there a few days ago, I pointed out that in 17, I think it was, hear-
                                                                 ings with Department of Justice witnesses, not one question for the
                                                                 record from a Senator was answered afterwards. Not one. That is
                                                                 not a coincidence. That is a policy.
                                                                    When we get questions for the record answered, it is because it
                                                                 is a nomination hearing and the nominee doesn’t go forward until
                                                                 the QFRs are answered. Outside of that, the policy seems to be,
                                                                 ‘‘We, the Department of Justice, don’t answer Committee questions
                                                                 for the record.’’
                                                                    I have a similar problem with letters, so I don’t believe what you
                                                                 have said about there being a responsible policy for getting letters
                                                                 answered. We have letter after letter after letter to DOJ and FBI
                                                                 that have gone completely unanswered. We finally got a letter out
                                                                 of the Antitrust Division recently by putting a hold on a piece of
                                                                 legislation that the Antitrust Division wanted, and the answer we
                                                                 got from the Antitrust Division was a blow-off. It was a nonsense
                                                                 answer. It did not answer the actual questions.
                                                                    So I would ask you to take back to the Department, what the
                                                                 heck is going on? Because this exceeds the partisanship that I see




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00024   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     21

                                                                 out of the Department. This is a persistent failure of response to
                                                                 oversight, and it is not always going to be a Republican Attorney
                                                                 General, it’s not always going to be a Republican Chairman. Some-
                                                                 thing is wrong. There is a policy someplace about not answering
                                                                 QFRs and not answering letters, and I am sick to death of it. So
                                                                 please take that back. And I see the Chairman nodding his head
                                                                 over there, so this is a bipartisan concern.
                                                                    The letter that was raised was from Chairman Grassley. This is
                                                                 a bipartisan concern. This is not the time to get into this. We are
                                                                 going to get into this further. But somewhere there is a policy, and
                                                                 I want it rooted out, because it is a wrong policy.
                                                                    Now, on unemployment insurance, Mr. Shivers, in your testi-
                                                                 mony, in the headings of the different elements of your testimony,
                                                                 you don’t even mention unemployment insurance. It’s not one of
                                                                 the topic areas. Mr. D’Ambrosio mentioned briefly unemployment
                                                                 insurance in his testimony, but described it as just ‘‘simple fraud.’’
                                                                    I don’t know that that is accurate, gentlemen. Just in Rhode Is-
                                                                 land, we’ve had 3,000 fraudulent unemployment insurance applica-
                                                                 tions. Our U.S. Attorney is looking into it after the Rhode Island
                                                                 State Police began an investigation because they seemed to be co-
                                                                 ordinated. The damages could be in the billions, the theft could be
                                                                 in the billions of dollars. IP information links entities to common
                                                                 fraudulent claims and also to fraudulent common claims in the
                                                                 State of Massachusetts, in the State of Connecticut, in the State of
                                                                 Washington.
                                                                    I think you need to step back and take a look at this as a very
                                                                 significant common scheme, very likely a foreign-led common
                                                                 scheme, and take a much harder look at this unemployment insur-
                                                                 ance fraud than you are appear to be undertaking from your testi-
                                                                 mony here today. I think we’re dealing with what may prove to be
                                                                 the crime of the decade, if not the crime of the century in terms
                                                                 of the amount of money that was stolen through a common scheme,
                                                                 run very likely by foreign crooks. And I would ask you also to take
                                                                 the message back that it would be really helpful if the Department
                                                                 of Justice and the FBI would support the bill that Treasury sup-
                                                                 ports, that former Chairman Grassley and Chairman Graham sup-
                                                                 port, that will peel back the ability of foreign entities to hide be-
                                                                 hind shell corporations in America, because what happens, as I
                                                                 think you know, is that they steal billions of dollars through these
                                                                 schemes, and then they launder the proceeds through shell cor-
                                                                 porations. We’ve seen it over and over and over again. The Depart-
                                                                 ment, the FBI, the Secret Service have all testified about the role
                                                                 of American shell corporations in hiding criminal assets. And when
                                                                 you look at the extent of the theft from our States through this un-
                                                                 employment insurance problem into which Federal money was
                                                                 poured in abundance as part of the COVID response, I think it’s
                                                                 a better bet than not that at the end of the day those proceeds of
                                                                 theft end up behind shell corporations where it’s harder for you to
                                                                 root them out and run them down.
                                                                    So I’d be eager to have any response to the point about unem-
                                                                 ployment insurance and what you’re planning to do to ramp up
                                                                 your response to this.
                                                                    Mr. SHIVERS. Senator, there was no ill intent in not mentioning
                                                                 unemployment insurance.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00025   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     22

                                                                    [Voice heard off microphone.]
                                                                    Mr. SHIVERS. I’m sorry. It is on. I will pull it closer.
                                                                    All right. There was no ill intent in not mentioning the unem-
                                                                 ployment insurance. Just with the limited amount of time, I want-
                                                                 ed to give an overview of some of——
                                                                    Chairman GRAHAM. But here’s the question that’s got my inter-
                                                                 est now. Three thousand, that is a lot.
                                                                    Senator WHITEHOUSE [continuing.] And that is just Rhode Island.
                                                                 Massachusetts, Connecticut, Washington—there are a dozen States
                                                                 that have this problem——
                                                                    Chairman GRAHAM. But from the Secret Service point of
                                                                 view——
                                                                    Senator WHITEHOUSE [continuing.] And probably more.
                                                                    Chairman GRAHAM. Senator Whitehouse’s question, is there or-
                                                                 ganized effort in the country or outside the country to exploit this
                                                                 program versus just, you know, a handful of people misidentifying
                                                                 themselves? I think that is the question. What do you see from the
                                                                 Secret Service point of view?
                                                                    Mr. D’AMBROSIO. So, Senator, first, to your first comment where
                                                                 you said it is a simple fraud, that really referred to the tactics and
                                                                 the techniques as opposed to the scope of this particular investiga-
                                                                 tion. I can assure you that the Secret Service is looking at unem-
                                                                 ployment fraud as a massive amount of fraud. We do see it as an
                                                                 organized group. We do see connections when it comes to
                                                                 transnational criminal activity overseas.
                                                                    Chairman GRAHAM. Well, you should have said that.
                                                                    Senator WHITEHOUSE. There you go. That feels better. Thank
                                                                 you. Now let us make sure that these agencies respond according
                                                                 to that and not to the not mentioning it or calling it just ‘‘simple
                                                                 fraud,’’ because it was potentially billions of dollars in fraud.
                                                                    Chairman GRAHAM. Senator Hawley.
                                                                    Senator HAWLEY. Thank you, Mr. Chairman. And I would also be
                                                                 interested in further responses to Senator Whitehouse’s questions,
                                                                 and I am going to come back to that actually in just a second.
                                                                    Let me start, though, by asking about the recent controversy in-
                                                                 volving 37 Planned Parenthood offices applying for and receiving
                                                                 funds under the Paycheck Protection Program despite their ineligi-
                                                                 bility. Just a quick review of the facts here. The CARES Act states
                                                                 that nonprofits are eligible for the program only if they and their
                                                                 affiliate organizations have no more than 500 employees. Now,
                                                                 Planned Parenthood has 16,000 employees nationwide, which is 37
                                                                 times the threshold, and there is no doubt that each of the 37
                                                                 Planned Parenthood offices who applied for the funds knew that
                                                                 they were affiliated because their own documents claim that they
                                                                 are affiliated. In fact, Planned Parenthood’s most recent financial
                                                                 statement describes it as one national branch with 55 Planned Par-
                                                                 enthood affiliates, 110 ancillary entities that are, and I am quoting
                                                                 now, ‘‘controlled by those Planned Parenthood affiliates.’’
                                                                    Despite knowing all this, 37 separate Planned Parenthood enti-
                                                                 ties applied for and received and, therefore, diverted $80 million
                                                                 from actual small business during this global pandemic.
                                                                    So let me just ask you, Mr. Hughes—I am not going to ask you
                                                                 to comment or reveal any details of any ongoing investigation, but
                                                                 let me just ask you generally, if an organization that knows it is




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00026   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     23

                                                                 ineligible for a program nonetheless applies, falsely certifies its eli-
                                                                 gibility, and receives tens of millions of dollars in taxpayer money
                                                                 meant for somebody else, do we have a criminal conduct issue?
                                                                   Mr. HUGHES. Thank you, Senator, for your question. And, again,
                                                                 you are right, I am unable to talk about specific investigations or
                                                                 the existence of specific investigations. However, the way the De-
                                                                 partment is approaching these cases is the application for these
                                                                 loans is pretty simple. In fact, the part you fill out is literally just
                                                                 two pages. And there are a number of representations on that
                                                                 about the number of employees you have and your monthly average
                                                                 payroll and the nature of your business, and then there are a cou-
                                                                 ple certifications such as criminal charges and convictions over the
                                                                 last 5 years. I believe that is the time period.
                                                                   There is some other information on there, but those inputs were
                                                                 specifically designed to be objective measures that could be quickly
                                                                 looked at and scrutinized for the purposes of determining whether
                                                                 an applicant intentionally misrepresented something material
                                                                 about their business that would allow us to proceed with charging
                                                                 and prosecuting swiftly.
                                                                   So we go where the facts and the law command us to go in each
                                                                 of our investigations, and so this is just an area that, like unem-
                                                                 ployment benefits programs, we are focusing the Department’s law
                                                                 enforcement and prosecutorial resources.
                                                                   Senator HAWLEY. What you are telling us is that the application
                                                                 is designed to be simple, it’s designed to be very factual, right? I
                                                                 mean, it’s not supposed to be a matter of interpretation. Do you
                                                                 comply or not comply? Here are the standards. Tell us what the
                                                                 facts are. Do you meet the threshold or not? Have I got that right?
                                                                 I mean, that is the basic design of the application.
                                                                   Mr. HUGHES. Generally, and it’s not an application which re-
                                                                 ceives a lot—needs to receive a lot of due diligence on the part of
                                                                 the lender from the beginning. Again, so really all the misrepresen-
                                                                 tation, the burden of that is on the applicant.
                                                                   Senator HAWLEY. What about executives of the organization or
                                                                 other decisionmakers who may have known about or signed off on
                                                                 any fraudulent application? When I say the organization, again, I
                                                                 am not asking you to talk about any particular investigation to
                                                                 confirm or deny its existence. But, in general, if you have an orga-
                                                                 nization where you have top executives who’s signed off on this,
                                                                 would there be potential liability for them?
                                                                   Mr. HUGHES. I think the traditional the traditional legal stand-
                                                                 ards that apply to corporate liability and individual liability for cor-
                                                                 porate actions apply with equal force in this with respect to pros-
                                                                 ecutions of this program.
                                                                   Senator HAWLEY. Very good. Well, thank you for that, and I look
                                                                 forward to seeing the progress of your inquiries over time.
                                                                   Let me come back to the unemployment question that Senator
                                                                 Whitehouse was asking about. Mr. Hughes, I will direct this to you
                                                                 or Mr. D’Ambrosio. Do you have any sense of how much money has
                                                                 been lost through fraud in the unemployment insurance piece of
                                                                 CARES? And has DOJ had any success in recovering any of those
                                                                 funds to date?
                                                                   Mr. D’AMBROSIO. Senator, I do not have a specific amount of
                                                                 what essentially has been lost. I can tell you I spoke previously




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00027   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     24

                                                                 anecdotally from some of the financial institutions that we are
                                                                 working it with, over about 100 of them. We have been told that
                                                                 an alert that we put out in mid-May prevented over about a $500
                                                                 million fraud alone. So that just kind of gives you a sense of the
                                                                 particular scope.
                                                                    We have been successful in recovering some money. We have——
                                                                    Senator HAWLEY. You have been, did you say?
                                                                    Mr. D’AMBROSIO [continuing.] We have been. We have been suc-
                                                                 cessful. We returned approximately through an investigation about
                                                                 $30 million to the State of Michigan. So there are cases where this
                                                                 has been—we’ve seen some success, and we are continuing to work
                                                                 very diligently on these cases, one, to identify, two, to recover the
                                                                 funds, and then eventually prosecute these individuals for this ac-
                                                                 tivity.
                                                                    Senator HAWLEY. Does anybody else have anything to add to
                                                                 that?
                                                                    Mr. HUGHES. Senator, the only thing I would add is that this is
                                                                 a big and growing focus for the Department. We’re coordinating in
                                                                 Senator Whitehouse’s district, the U.S. Attorney’s Office there, the
                                                                 U.S. Attorney’s Offices in other jurisdictions including Washington,
                                                                 we are coordinating closely with both the Secret Service, the FBI,
                                                                 and other law enforcement. We’re also coordinating with the finan-
                                                                 cial industry. As the Assistant Director noted, some of the easiest,
                                                                 some of the quickest—the quickest tool is to get the financial insti-
                                                                 tutions where these payments—that are the rails through which
                                                                 these payments travel to identify this activity and to work with us
                                                                 and State authorities to stop these payments, especially when they
                                                                 are traveling overseas.
                                                                    Senator HAWLEY. Very good. My time has expired. I have got
                                                                 some additional questions on this front which I will submit to the
                                                                 record.
                                                                    Senator HAWLEY. Thank you all for your service and being here.
                                                                    Thank you, Mr. Chairman.
                                                                    Chairman GRAHAM. Thank you. Senator Klobuchar.
                                                                    Senator KLOBUCHAR. Thank you very much, Mr. Chairman.
                                                                 Thank you for holding this important hearing.
                                                                    I think what we do know from this pandemic is that this has
                                                                 brought out the best in so many people that put themselves on the
                                                                 front lines, but it also has brought out the worst in terms of the
                                                                 kinds of scams that we are talking about today.
                                                                    Senator Grassley has already mentioned the letter that he and
                                                                 I led back in April, April 7, and we are still, Mr. Carpenito, waiting
                                                                 for an answer to that. And if you could—that’s a long time—convey
                                                                 that, I’ll just ask some of the questions, because we are concerned
                                                                 about what is happening and what investigations have actually
                                                                 been opened. How many investigations has the task force opened?
                                                                    Mr. CARPENITO. With regards to hoarding and price gouging, we
                                                                 have opened several hundred investigations that are ongoing.
                                                                    Senator KLOBUCHAR. And has the task force brought charges
                                                                 against violators—in how many cases?
                                                                    Mr. CARPENITO. With regards to hoarding and price gouging, the
                                                                 task force has already filed eight criminal cases.
                                                                    Senator KLOBUCHAR. Okay. All right. And there are 100 lawyers
                                                                 assigned? Is that right?




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00028   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     25

                                                                    Mr. CARPENITO. The way the task force is structured is I lead the
                                                                 task force with the assistance of Mr. Hughes. We have three re-
                                                                 gional coordinators—one for the West out of the L.A. U.S. Attor-
                                                                 ney’s Office, one in the Central out of the Chicago U.S. Attorney’s
                                                                 Office, and one for the East out of my office. Each U.S. Attorney’s
                                                                 Office has one representative at least. As obviously—as some dis-
                                                                 trict are busier than others, there are additional lawyers working
                                                                 on it. And each of the Department components also has a rep-
                                                                 resentative.
                                                                    Senator KLOBUCHAR. Okay. Are they full-time then, the 100 law-
                                                                 yers?
                                                                    Mr. CARPENITO. I would not say they are full-time. Some of them
                                                                 are. For example, in the early stages——
                                                                    Senator KLOBUCHAR [continuing.] That is Okay. I have a lot of
                                                                 other questions. If we got this back in writing, we could figure it
                                                                 out. Again, we’re just trying to push for some actual results here.
                                                                    Another way to do this, in addition to what you are doing, State
                                                                 Attorney Generals, as you know, are doing a lot. Attorney General
                                                                 Ellison and I have done some work together on this since the pan-
                                                                 demic started. And are you coordinating with them on the price
                                                                 gouging?
                                                                    Mr. CARPENITO. We have encouraged all of the members of the
                                                                 task force in each of the 93 U.S. Attorney’s Office and components
                                                                 to coordinate. I can tell you personally in New Jersey we have a
                                                                 very good working relationship with State Attorney General Gurbir
                                                                 Grewal. We have formed a joint task force with the State Attorney
                                                                 General. I know some other districts have done that as well. And
                                                                 we have had virtual daily contact about referrals, and we’ve
                                                                 worked on cases and decided which cases fit more with the State’s
                                                                 purview or the Federal Government’s.
                                                                    Senator KLOBUCHAR. Okay. Your testimony indicated that the
                                                                 Department focuses on sellers charging ‘‘substantially higher prices
                                                                 than traditional market participants.’’ I have a bill that I intro-
                                                                 duced, and cosponsoring that bill are Senators Blumenthal, Hirono,
                                                                 and Cortez Masto, and it would prohibit price gouging during na-
                                                                 tional emergencies and targets price increases of more than 20 per-
                                                                 cent above the pre-emergency services. And States with these kind
                                                                 of price-gouging laws have saved targets of 10 to 25 percent. Is
                                                                 there a set amount or is there a minimum amount you are looking
                                                                 at or a target price by the task force? And would it be helpful to
                                                                 have this Federal law?
                                                                    Mr. CARPENITO. I think it would be helpful to have that Federal
                                                                 law, as well as Mr. Hughes——
                                                                    Senator KLOBUCHAR. That made my day. Thank you.
                                                                    Mr. CARPENITO [continuing.] I am sorry?
                                                                    Senator KLOBUCHAR. That made my day.
                                                                    Mr. CARPENITO. I think as Mr. Hughes said, too, a sentencing en-
                                                                 hancement for those who try to take advantage of situations like
                                                                 this, national disasters, I think would also be a very useful tool.
                                                                    With regards to thresholds, I think that the target range you are
                                                                 talking about is the target range that we are talking about. The
                                                                 State Attorney Generals, the practices that I have looked at, the
                                                                 State price-gouging laws are usually in the 10-to 20-percent range.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00029   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     26

                                                                 We are certainly looking for markups of that amount or greater in
                                                                 our investigations.
                                                                    Senator KLOBUCHAR. Okay. Last, Mr. Hughes, in your written
                                                                 testimony, you mentioned the Antitrust Division’s joint statement
                                                                 with the FTC on monitoring employer collusion during the pan-
                                                                 demic. I am very focused—I am the Ranking Member on the Anti-
                                                                 trust Subcommittee with Senator Lee, and I am really concerned
                                                                 about what is going on, like the proposed Uber-Grubhub merger
                                                                 that there has been some discussion about, I shall say, and the fact
                                                                 that we’re seeing more and more consolidation during the pan-
                                                                 demic.
                                                                    And on May 1, I sent a letter to the Antitrust Division and the
                                                                 FTC with a number of other Senators emphasizing the need for
                                                                 vigorous antitrust enforcement. The letter included a number of
                                                                 questions, and we received a response from the FTC, but we have
                                                                 not received anything from the Antitrust Division.
                                                                    Given the importance of this issue right now, when can we ex-
                                                                 pect a response?
                                                                    Mr. HUGHES. Thank you for the question, Senator. I do not know
                                                                 the status of that particular letter. I understand and agree that the
                                                                 subject of it is important, and I can go back to my colleagues at
                                                                 the Department and—but I do assure you that the Department of
                                                                 Justice takes these letters seriously, and we understand that ac-
                                                                 commodation is important to the legislative process.
                                                                    Senator KLOBUCHAR. It is. Just making sure that we make this
                                                                 a major, major piece of our consumer work right now, because it’s
                                                                 easy just to turn an eye with these major companies saying, ‘‘Hey,
                                                                 let us merge. Times are tough,’’ when, in fact, what is happening
                                                                 is that they are squeezing out smaller and smaller companies, and
                                                                 we are going to have less competition, which is the whole reason
                                                                 we have the antitrust laws to begin with.
                                                                    The last thing, I will ask this for the record—I know my time has
                                                                 expired; I will ask it later—about this bill that Senator Moran and
                                                                 I just did on protecting seniors from scams. And we also know that
                                                                 a lot of seniors are targeted, and I will ask that later. So thank
                                                                 you.
                                                                    Chairman GRAHAM. Thank you, Senator Klobuchar. Senator
                                                                 Blackburn.
                                                                    Senator BLACKBURN. Yes, thank you, Mr. Chairman. And I want
                                                                 to thank our witnesses for being there today.
                                                                    One of the first cases having to do with price gouging was two
                                                                 brothers outside Chattanooga and they were buying up hand sani-
                                                                 tizer and then running the price up online from $8 to I think $70
                                                                 per container. So if you would, talk to me a little bit about your
                                                                 participation with local and State officials and how you work with
                                                                 them. And I think, Mr. Shivers, this probably is best coming to you,
                                                                 and if you all will talk just a little bit about how you work with
                                                                 your State and local law enforcement partners.
                                                                    Mr. SHIVERS. So one of the FBI’s strengths is working with our
                                                                 Federal, State, and local partners, and obviously working in the
                                                                 COVID–19 environment it’s been very challenging. But that has
                                                                 not deterred our ability to coordinate with our State and local part-
                                                                 ners.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00030   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     27

                                                                    There are a number of ways, and I think one of the previous
                                                                 questions is how does the FBI receive information relative to some
                                                                 of the fraud schemes. Obviously, there’s a wide range, but through
                                                                 coordination with our State and local partners, we are receiving a
                                                                 lot of information relative to COVID–19 fraud. So because we oper-
                                                                 ated in a task force environment in many of our offices, whether
                                                                 that’s our Safe Streets Task Force or Violent Crime Task Force, a
                                                                 lot of our task forces have pivoted to address the threat of the
                                                                 COVID–19 fraud schemes that we are seeing.
                                                                    And so, again, for us, it’s just a continual practice of working
                                                                 very closely with our State and local partners and addressing what-
                                                                 ever crimes are being committed within their jurisdictions.
                                                                    Senator BLACKBURN. All right. That sounds great. And then
                                                                 when you are working with Big Tech and trying to get the informa-
                                                                 tion for online fraud with some of these companies, and primarily
                                                                 dealing with China and the fraudulent and inferior merchandise
                                                                 and PPE that was coming out of there, how are you working with
                                                                 some of our allies in this virtual space in order to get this informa-
                                                                 tion to shut these entities down? And does Big Tech respond quick-
                                                                 ly to your requests to shut down some of these entities and then
                                                                 to block them off their server systems?
                                                                    Mr. SHIVERS. So as previously mentioned, our focus is not the im-
                                                                 portation of the PPE. We are primarily dealing with PPE on the
                                                                 front end as it pertains to hoarding and price gouging. And through
                                                                 the course of our investigations, we are coming across PPE that
                                                                 may be substandard or counterfeit.
                                                                    As it pertains to working with our international partners, there
                                                                 are a number of fraud schemes that I think we have talked about
                                                                 today. Some of those fraud schemes are internet-based, and so, as
                                                                 appropriate, we work with our international partners to develop in-
                                                                 formation leads that may have a nexus to the United States or
                                                                 leads that we may disseminate to our international partners. So
                                                                 the international partnership is very important in dealing with
                                                                 COVID–19 because, again, a lot of these fraud schemes are ema-
                                                                 nating from all across the world.
                                                                    We have a relationship with various entities in the private sec-
                                                                 tor, and I spoke a few minutes earlier about our relationship with
                                                                 the banking industry. We also work with the tech industry, but, ob-
                                                                 viously, you know, that requires legal service in order to receive in-
                                                                 formation that may be relevant to our investigation.
                                                                    Senator BLACKBURN. Thank you. I yield back. Thank you, Mr.
                                                                 Chairman.
                                                                    Chairman GRAHAM. Thank you. Senator Blumenthal.
                                                                    Senator BLUMENTHAL. Thanks, Mr. Chairman.
                                                                    I would like to ask our two Justice Department representatives,
                                                                 have you—are you familiar with Project Airbridge?
                                                                    Mr. CARPENITO. Yes, sir, I am familiar with the fact that Project
                                                                 Airbridge exists.
                                                                    Senator BLUMENTHAL. A number of us, Senator Warren and I,
                                                                 began an investigation some time ago asking questions of the six
                                                                 major distributors involved in Project Airbridge. And our inquiry
                                                                 has shown that there was cronyism and political favoritism that
                                                                 led to tragically misallocated supplies and Government seizures of
                                                                 equipment that were going to providers that very much needed it.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00031   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     28

                                                                 Cronyism and incompetence that was exemplified in this program
                                                                 had real-life consequences, and clearly this Project Airbridge, which
                                                                 was a kind of pet project of Jared Kushner, was, in effect, a bridge
                                                                 to nowhere for the health care providers who needed that equip-
                                                                 ment. At the very least, there was incompetence, confusion, and
                                                                 even possible corruption.
                                                                    Is there any ongoing inquiry within the Department of Justice
                                                                 relating to Project Airbridge?
                                                                    Mr. CARPENITO. Unfortunately, Senator, I am not at liberty to
                                                                 discuss any ongoing nonpublic investigations of the Department.
                                                                    Senator BLUMENTHAL. Will you commit to reviewing this inquiry
                                                                 and making it part of your investigation if there is one underway?
                                                                    Mr. CARPENITO. Unfortunately, Senator, doing that would be ac-
                                                                 knowledging the existence of an investigation, and I am just not at
                                                                 liberty to discuss investigations of the Department.
                                                                    Senator BLUMENTHAL. Well, you’ll at least read the results of our
                                                                 investigation, correct?
                                                                    Mr. CARPENITO. Once again, sir, I would be remiss to comment
                                                                 about an investigation. What I can tell you is we are committed to
                                                                 rooting out fraud with relation to any of the CARES Act programs
                                                                 and anything related to COVID–19 hoarding and price gouging.
                                                                    Senator BLUMENTHAL. Well, Senator Schumer, Senator Warren,
                                                                 and I will send you the results of this investigation, and hopefully
                                                                 you will followup on it.
                                                                    Mr. CARPENITO. Thank you.
                                                                    Let me ask you about the fake cures which are part of that, I
                                                                 think, $48 billion total number that Senator Feinstein mentioned,
                                                                 which is an astonishing and appalling number. If Americans have
                                                                 lost close to $50 billion, we need really aggressive and proactive
                                                                 law enforcement in this area. I know you’ve said that you have
                                                                 enough resources and authority, but I think that Americans are
                                                                 going to be looking for results at some point. So I would suggest
                                                                 that maybe you would want to review whether, in fact, you do have
                                                                 enough authority and resources, because there can’t be too much
                                                                 when you’re investigating this kind of fraud that directly impacts
                                                                 people.
                                                                    In a recent report, the Center for Science in the Public Interest
                                                                 found that at least 49 dietary supplements on Amazon with
                                                                 antiviral claims were making false and misleading statements. Do
                                                                 you have any such fake cures under investigation?
                                                                    Mr. CARPENITO. I would yield to Mr. Hughes.
                                                                    Mr. HUGHES. So, Senator, we have several investigations that re-
                                                                 late to misbranded or mismarketed pharmaceuticals——
                                                                    Senator BLUMENTHAL. Have you brought any actions?
                                                                    Mr. HUGHES [continuing.] We have. We have brought a number
                                                                 of injunctions to stop the marketing of such conduct. We have filed
                                                                 criminal complaints against the individuals who have been mar-
                                                                 keting——
                                                                    Senator BLUMENTHAL. Could you provide the details to my office,
                                                                 please?
                                                                    Let me move on because my time is limited. In terms of unem-
                                                                 ployment insurance, you were answering some questions posed by
                                                                 Senator Whitehouse. What exactly is the modus operandi of these




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00032   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     29

                                                                 potential scams? And are you finding actual criminal violations in
                                                                 any of these scams impacting Connecticut?
                                                                    Mr. D’AMBROSIO. Senator, as we’ve seen, what it primarily is, the
                                                                 scam itself, is acquiring PII, stolen PII, whether it be purchased on
                                                                 the black market or through network intrusions and being utilized
                                                                 using that information and applying to the different States for the
                                                                 unemployment insurance. Yes, we are finding violations, and we
                                                                 are pursuing those cases.
                                                                    Senator BLUMENTHAL. How close are you to bringing action?
                                                                    Mr. D’AMBROSIO. I do not have specific information as to how
                                                                 close we are to prosecution.
                                                                    Senator BLUMENTHAL. Do you have a dollar amount in terms of
                                                                 what the impact is?
                                                                    Mr. D’AMBROSIO. I have stated previously, Senator, is that we
                                                                 published an alert in mid-May, and working with the financial in-
                                                                 stitutions, because the financial institutions are the natural choke
                                                                 point for these payments to go, they were able to prevent, accord-
                                                                 ing to them, over $500 million in payments. We’ve also been able
                                                                 to recover and return to the State of Michigan about $30 million
                                                                 of fraudulent payments that were made.
                                                                    Senator BLUMENTHAL. Do you have suspects, specific individuals?
                                                                    Mr. D’AMBROSIO. I do not personally have that information. I
                                                                 know we have active investigations.
                                                                    Senator BLUMENTHAL. Well, when I say ‘‘you,’’ I do not mean you
                                                                 personally. I mean your agency.
                                                                    Mr. D’AMBROSIO. I would have to go back and get specific infor-
                                                                 mation.
                                                                    Senator BLUMENTHAL. Could you provide more details to my of-
                                                                 fice later today? I am out of time right now, and you need more
                                                                 information from your agency, so I would appreciate additional in-
                                                                 formation later today.
                                                                    Mr. D’AMBROSIO. We will provide what we can. These are ongo-
                                                                 ing investigations that would be limited, but yes, Senator.
                                                                    Senator BLUMENTHAL. Thank you.
                                                                    Thanks, Mr. Chairman.
                                                                    Chairman GRAHAM. Thank you. Hirono.
                                                                    Senator HIRONO. Thank you, Mr. Chair.
                                                                    I was very interested in the line of questioning by my colleague
                                                                 Senator Durbin. Mr. Carpenito, you indicated that you are now get-
                                                                 ting cooperation from Amazon, Facebook, and eBay about the sell-
                                                                 ing of stolen items. So have there been any prosecutions based on
                                                                 the information that you have gotten from the cooperation from
                                                                 these three entities?
                                                                    Mr. CARPENITO. I do not have any specifics about any investiga-
                                                                 tions in front of me. What I can tell you is that we have done out-
                                                                 reach with those outlets, and I am unaware of any situation where
                                                                 we have sought information and have not obtained it pursuant to
                                                                 legal process.
                                                                    Senator HIRONO. Well, apparently, according to the way the situ-
                                                                 ation was described by Senator Durbin, that this goes on in quite
                                                                 a blatant way. And if you can get information from these entities
                                                                 that are platforms for the sale of these stolen goods, that would be
                                                                 a good thing. And so I would suggest that you look at the INFORM
                                                                 Consumers Act that Senator Durbin referred to, which is bipar-




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00033   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     30

                                                                 tisan, supported by Senators Durbin, Cassidy, myself, and Senator
                                                                 Perdue. That may give you more tools to go after these kinds of
                                                                 crimes.
                                                                    I think all the panelists, you have referred to hundreds of pros-
                                                                 ecutions, thousands of investigations as a result of all the scams
                                                                 and fraud perpetrated because of the opportunities presented by
                                                                 COVID–19. And I think, Mr. Hughes, you indicated that there are
                                                                 serious consequences for people who commit these kinds of criminal
                                                                 acts. So I would like to know. Has anybody gone to prison? Are you
                                                                 seeking prison time? What kind of fines are you imposing on the
                                                                 people that you prosecute for these crimes?
                                                                    Mr. HUGHES. Thank you for the question, Senator. I think for the
                                                                 frauds, the standard penalty, the incarceration length, applies that
                                                                 normally applies under non-COVID–19-related circumstances. With
                                                                 respect to some of the PPP fraud, for example, again, a lot of fac-
                                                                 tors need to be—need to necessarily affect how long a particular de-
                                                                 fendant’s prison time would be. And whether they plead and take
                                                                 responsibility or are convicted at trial also affects it, as does the
                                                                 sentencing judge.
                                                                    Back-of-the-envelope calculation, just for PPP would be any-
                                                                 where—the average would be between 50 months and 100 months.
                                                                 And that is, you know, typical for the types of frauds we are seeing
                                                                 where the proceeds are in the millions of dollars. Again, there are
                                                                 a number of different tools we bring to bear to address these prob-
                                                                 lems and disrupt these schemes.
                                                                    Senator HIRONO. Mr. Hughes, I am running out of time, but do
                                                                 you think that we should create higher consequences or steeper
                                                                 consequences for people who take advantage during a national cri-
                                                                 sis and a pandemic? You referred to the usual fraud kinds of con-
                                                                 sequences, but maybe we should be looking at higher levels of con-
                                                                 sequences. What do you think?
                                                                    Mr. HUGHES. Senator, I think there is an honest and important
                                                                 debate as to the level of consequences for offenses during a national
                                                                 emergency. There have been discussions about proposed legislation
                                                                 regarding Sentencing Guidelines. Those discussions, in the Depart-
                                                                 ment’s view, should continue, and we would be willing to have dis-
                                                                 cussions about other proposed legislation in that vein.
                                                                    Senator HIRONO. You have been asked the UI scam involving a
                                                                 Nigerian entity. So, apparently, a number of these kinds of frauds
                                                                 are perpetrated by foreign entities, and I’m wondering. How easy
                                                                 is it for you to effectively prosecute foreign entities? And do you
                                                                 need more tools, any of you, to go after these foreign criminals?
                                                                    Mr. HUGHES. I think from a prosecution standpoint I’ll defer to
                                                                 our law enforcement investigative colleagues with respect to inves-
                                                                 tigations, but from a prosecution perspective, we have a number of
                                                                 tools, jurisdictional hooks which permit Federal prosecutors to
                                                                 charge and effectively prosecute foreign criminal organizations.
                                                                 And those tools in many respects are as robust as they can given
                                                                 certain jurisdictional and constitutional limitations. But I will defer
                                                                 to my Federal investigations colleagues for the investigations piece.
                                                                    Mr. SHIVERS. So as I mentioned previously, working with inter-
                                                                 national partners is very important for us, and so whether these
                                                                 fraud schemes emanate from a foreign country that touch our
                                                                 American citizens, we work very closely through our legal attaché




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00034   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     31

                                                                 offices around the world to develop information, work in conjunc-
                                                                 tion with our foreign law enforcement partners to bring charges.
                                                                    Obviously, one of the potential obstacles that we would face
                                                                 would be matters of extradition, so those are some of the things
                                                                 that we have to work through. But, again, these fraud schemes, be-
                                                                 cause many are internet-based, have a foreign nexus. And so with
                                                                 the FBI, one of the things that we have done—and this was
                                                                 through our elder fraud initiative that we worked with the Depart-
                                                                 ment of Justice over the last 2 years—is we have assigned assist-
                                                                 ant legal attachés in various countries where we know some of
                                                                 these fraud schemes emanate. And that gives us greater visibility,
                                                                 greater connection with our international partners, and enhances
                                                                 our ability to bring those individuals to justice.
                                                                    Senator HIRONO. May I just have ask more question, a followup,
                                                                 Mr. Chairman?
                                                                    Chairman GRAHAM. Thank you very much, Senator Hirono. We
                                                                 will make sure you get to do that.
                                                                    Senator HIRONO. Okay.
                                                                    Chairman GRAHAM. Okay. Thank you. Let us see. Senator Book-
                                                                 er.
                                                                    Senator BOOKER. I think Senator Hirono said she wanted to ask
                                                                 one last question.
                                                                    Chairman GRAHAM. Oh, I am sorry. I misheard. Senator Hirono.
                                                                    Senator HIRONO. I am sorry.
                                                                    Chairman GRAHAM. No, no. I apologize. Ask anything you want
                                                                 to ask. I apologize.
                                                                    Senator HIRONO. I think it is really hard to prosecute these kinds
                                                                 of crimes when the perpetrators are foreigners, and our panel ex-
                                                                 plained the difficulties. And so a lot of this type of information is
                                                                 stolen information that is already out there, the personally identifi-
                                                                 able information. So is there something more that States and indi-
                                                                 viduals can do to protect themselves from the sort of fraud that
                                                                 comes about from stolen identities?
                                                                    Chairman GRAHAM. Good question.
                                                                    Mr. SHIVERS. I would say just kind of a basic 101, there are a
                                                                 number of services where individuals can have access to their cred-
                                                                 it report, and I would imagine that reviewing your credit report for
                                                                 anything that, you know, you may not have knowledge of would be
                                                                 important. But I think also taking preventive measures, and that
                                                                 is, obviously, the internet, there’s a way that the criminals ap-
                                                                 proach individuals, sending these unsolicited emails. So I would
                                                                 just say just using, for lack of a better word, basic common sense
                                                                 in how the public deals with some of these opportunities that these
                                                                 criminal organizations take advantage of.
                                                                    So it’s obviously a very difficult thing, but, again, unsolicited
                                                                 emails, unsolicited phone calls, where individuals are actually pro-
                                                                 viding some of the PII. But, again, as we have talked about, some
                                                                 of that PII may be stolen. So I would just say just using some basic
                                                                 preventive measures.
                                                                    Senator HIRONO. Thank you, Mr. Chair.
                                                                    Chairman GRAHAM. Thank you. Senator Booker.
                                                                    Senator BOOKER. Mr. Chairman, I think the rule of the Com-
                                                                 mittee should be it is better to ask for forgiveness than permission.
                                                                 I know Senator Hirono knows that rule.




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00035   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     32

                                                                    But I am grateful to be here, and if I can, I want to direct my
                                                                 questions to Mr. Carpenito, not just because he is from New Jersey,
                                                                 not just because he is bald, not just because Anthony Ambrose, who
                                                                 is both of those things, has said generous things about him. But,
                                                                 obviously, these issues are really impacting our State, and I would
                                                                 love to get some of his insights.
                                                                    And so, first of all, we have seen numerous instances of retailers
                                                                 taking advantage of the global pandemic and gouging, charging
                                                                 outrageous fees for medical supplies, personal protective equip-
                                                                 ment, things that are really—we deem essential and are critical to
                                                                 the life, safety, and well-being of so many of our first responders
                                                                 and others. This behavior is immoral, frankly, and reprehensible.
                                                                    My team and I have introduced the Prevent Emergency and Dis-
                                                                 aster Profiteering Act on May 7. There is no Federal law against
                                                                 this kind of reprehensible price gouging on essential items that are
                                                                 deemed critical to the health, safety, and lives of so many Ameri-
                                                                 cans.
                                                                    And so, Mr. Carpenito, I am curious what you think of the power
                                                                 of having a Federal law against this kind of gouging, if you could
                                                                 comment on that, and then talk about the prevalence of this in
                                                                 New Jersey and how have you, without that law, been successful
                                                                 in trying to combat these issues.
                                                                    Mr. CARPENITO. Thank you, Senator. So I agree with your char-
                                                                 acterization. I think New Jersey is one of the States that had one
                                                                 of the largest impacts from this type of conduct because, as every-
                                                                 one knows, New York and New Jersey were two of the most im-
                                                                 pacted States in the country by COVID–19.
                                                                    We also have some of the most vulnerable victims for this as we
                                                                 have a very large elderly population, and we have a very large
                                                                 health care system.
                                                                    So, thankfully, because of the invocation of the Defense Produc-
                                                                 tion Act and the swift movement by Attorney General Barr to set
                                                                 up the task force to enforce the act, we have had the tools to ad-
                                                                 dress hoarding and price gouging of scarce materials, those des-
                                                                 ignated by the Department of Health and Human Services, and
                                                                 that’s how we have been able to operate. I have not felt constrained
                                                                 as a task force leader in our tools there.
                                                                    But as you mentioned, there is a—there is really a history and
                                                                 a record here of folks trying to take advantage of national disasters
                                                                 like this. We saw it in Katrina. You and I saw it in New Jersey
                                                                 after Hurricane Sandy. And we’ve seen it throughout the country
                                                                 on a scale that we have never seen before with COVID–19 because
                                                                 it is the largest health crisis we have had since the Spanish flu.
                                                                    We have been unable to address certain types of price gouging
                                                                 because there’s not a Federal statute. For example, things like toi-
                                                                 let paper, things like, you know, meat, things like food, things like
                                                                 other materials that personal consumers need are better suited
                                                                 under the current statutory scheme to be prosecuted by State At-
                                                                 torney General’s offices.
                                                                    What we have done is I have worked with Mr. Hughes, Mr. Shiv-
                                                                 ers, and we have made sure that we make those referrals to State
                                                                 AGs where we think they have the better tools to prosecute those
                                                                 individuals, because the most important thing, as always, is just to




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00036   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     33

                                                                 make sure that these people are brought to justice, not who does
                                                                 it.
                                                                     Senator BOOKER. I am grateful for that response, and I do really
                                                                 believe there is an urgency to give on the Federal level more tools
                                                                 to deal with that.
                                                                     You know, on March 20 of this year, you announced the creation
                                                                 of the Federal-State COVID–19 Fraud Task Force with Attorney
                                                                 General Gurbir Grewal and our Comptroller Walsh. The task force
                                                                 bridges the prosecutorial efforts of the State and Federal agencies
                                                                 and the kind of coordination and cooperation I think is really need-
                                                                 ed in circumstances like this. And so I just want to hear a little
                                                                 bit more about the Federal-State task force, what kind of fraud
                                                                 schemes you guys have uncovered since its creation and what chal-
                                                                 lenges have you all encountered in combating that fraud that you
                                                                 see out there.
                                                                     Mr. CARPENITO. Sure, and you—we are very blessed in New Jer-
                                                                 sey. I can’t speak about every State, but I think that we have
                                                                 heard—as task force leaders, myself and Mr. Hughes have heard
                                                                 similar success stories throughout the country in forming partner-
                                                                 ships here. We have had a very good relationship during my entire
                                                                 tenure with Attorney General Grewal’s office and, in particular,
                                                                 working with his first assistant, Jen Davenport, and his executive
                                                                 assistant, Andrew Brock. They’ve been in almost daily contact with
                                                                 our task force folks in New Jersey, sharing referrals.
                                                                     Unfortunately, I cannot get into specifics of referrals because the
                                                                 cases that I have on my mind are not ones that are publicly avail-
                                                                 able information at this time. But what I can tell you is we haven’t
                                                                 really seen a lot of hurdles because we have put egos aside and we
                                                                 have focused most importantly on making sure these cases are
                                                                 brought.
                                                                     You know, with regards to the tools, like I said, the Defense Pro-
                                                                 duction Act has been a powerful tool for us, and it’s given us the
                                                                 authority to investigate price gouging and do so pretty vociferously
                                                                 and quickly.
                                                                     Senator BOOKER. I’m over time. I’m going to submit more of a lot
                                                                 of our pressing questions for the record, for QFRs.
                                                                     Senator BOOKER. I do have one last question for you to put you
                                                                 on the spot, and I apologize for doing this in advance. But my ques-
                                                                 tion simply is, Anthony Ambrose, is he a great police director or
                                                                 is he the greatest police director?
                                                                     Mr. CARPENITO. He is a national treasure. I’ve been saying this
                                                                 since I came into office, and we have seen it during these riots. The
                                                                 fact that Newark stayed together as a community and were peace-
                                                                 ful in their reaction to the death of George Floyd is a credit to Di-
                                                                 rector Ambrose for his handling of law enforcement and a credit to
                                                                 Mayor Ras Baraka for his community engagement. And I saw first-
                                                                 hand for the past 8 to 10 days as other cities struggled with these
                                                                 protests, Newark thrived, and they are doing so because of the
                                                                 work that was done through the Newark consent decree with the
                                                                 leadership of Anthony Ambrose, and as I said, the community en-
                                                                 gagement and support that Mayor Baraka has shown for his police
                                                                 department and, quite frankly, the support that both have shown
                                                                 to me since I have been U.S. Attorney in focusing on violent crime




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00037   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     34

                                                                 throughout Newark through not just prosecutions but by education
                                                                 and community engagement.
                                                                    Senator BOOKER. Well, I appreciate your deference to consent de-
                                                                 crees. I wish that the current Attorney General would actually en-
                                                                 gage and use them. They were a constructive force in the city of
                                                                 Newark. I appreciate you saying things about the extraordinary
                                                                 leadership of Ras Baraka. That is 100 percent true. And Anthony
                                                                 Ambrose is a treasure. He takes better care of the city of Newark
                                                                 than he does himself, so I hope that you will—again, I say this on
                                                                 the record—encourage him to get out there, exercise, and, you
                                                                 know, be more healthy so we have him for a few more decades.
                                                                    Mr. CARPENITO. He is down 70 pounds. We are looking good.
                                                                    Senator BOOKER. He is, he is, actually, in all truth.
                                                                    Thank you, Mr. Chairman.
                                                                    Chairman GRAHAM. Thank you. I need to call him. I am trying
                                                                 to lose some weight myself.
                                                                    So here is the deal. We all appreciate you coming to the Com-
                                                                 mittee. I asked you do you have the tools necessary, the resources.
                                                                 It seems like there are some tools that maybe we could utilize that
                                                                 you do not have. So if you can kind of get your collective wisdom,
                                                                 I think Senator Durbin had a bill, Senator Klobuchar, I think Sen-
                                                                 ator Booker introduced legislation. So get back with us about what
                                                                 we can do to help you. I mean what can the Committee do to
                                                                 change laws or supplement laws, sentencing enhancing, whatever?
                                                                 Just let us know.
                                                                    Thank you all for being on the front lines, and we will hold the
                                                                 hearing record open for the requisite amount of time for additional
                                                                 questions. Thank you.
                                                                    [Whereupon, at 11:58 a.m., the hearing was adjourned.]




JND-48373 with DISTILLER

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00038   Fmt 6633    Sfmt 6633   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     35




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 1 here 63175.001

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00039   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     36




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 2 here 63175.002

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00040   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     37




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 3 here 63175.003

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00041   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     38




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 4 here 63175.004

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00042   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     39




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 5 here 63175.005

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00043   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     40




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 6 here 63175.006

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00044   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     41




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 7 here 63175.007

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00045   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     42




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 8 here 63175.008

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00046   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     43




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 9 here 63175.009

                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00047   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     44




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 10 here 63175.010


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00048   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     45




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 11 here 63175.011


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00049   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     46




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 12 here 63175.012


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00050   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     47




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 13 here 63175.013


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00051   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     48




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 14 here 63175.014


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00052   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     49




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 15 here 63175.015


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00053   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     50




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 16 here 63175.016


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00054   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     51




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 17 here 63175.017


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00055   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     52




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 18 here 63175.018


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00056   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     53




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 19 here 63175.019


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00057   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     54




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 20 here 63175.020


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00058   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     55




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 21 here 63175.021


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00059   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     56




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 22 here 63175.022


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00060   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     57




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 23 here 63175.023


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00061   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     58




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 24 here 63175.024


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00062   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     59




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 25 here 63175.025


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00063   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     60




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 26 here 63175.026


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00064   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     61




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 27 here 63175.027


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00065   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     62




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 28 here 63175.028


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00066   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     63




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 29 here 63175.029


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00067   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     64




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 30 here 63175.030


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00068   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     65




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 31 here 63175.031


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00069   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     66




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 32 here 63175.032


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00070   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     67




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 33 here 63175.033


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00071   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     68




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 34 here 63175.034


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00072   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     69




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 35 here 63175.035


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00073   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     70




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 36 here 63175.036


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00074   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     71




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 37 here 63175.037


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00075   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     72




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 38 here 63175.038


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00076   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     73




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 39 here 63175.039


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00077   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     74




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 40 here 63175.040


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00078   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     75




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 41 here 63175.041


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00079   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     76




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 42 here 63175.042


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00080   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     77




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 43 here 63175.043


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00081   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     78




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 44 here 63175.044


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00082   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     79




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 45 here 63175.045


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00083   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     80




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 46 here 63175.046


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00084   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     81




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 47 here 63175.047


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00085   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     82




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 48 here 63175.048


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00086   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     83




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 49 here 63175.049


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00087   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     84




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 50 here 63175.050


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00088   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     85




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 51 here 63175.051


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00089   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     86




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 52 here 63175.052


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00090   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     87




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 53 here 63175.053


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00091   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     88




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 54 here 63175.054


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00092   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     89




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 55 here 63175.055


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00093   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     90




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 56 here 63175.056


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00094   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     91




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 57 here 63175.057


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00095   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     92




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 58 here 63175.058


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00096   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     93




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 59 here 63175.059


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00097   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     94




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 60 here 63175.060


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00098   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     95




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 61 here 63175.061


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00099   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     96




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 62 here 63175.062


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00100   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     97




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 63 here 63175.063


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00101   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     98




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 64 here 63175.064


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00102   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                     99




JND-48373 with DISTILLER                                                                                                                                            Insert offset folio 65 here 63175.065


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00103   Fmt 6633    Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 100




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 66 here 63175.066


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00104   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 101




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 67 here 63175.067


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00105   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 102




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 68 here 63175.068


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00106   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 103




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 69 here 63175.069


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00107   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 104




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 70 here 63175.070


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00108   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 105




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 71 here 63175.071


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00109   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 106




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 72 here 63175.072


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00110   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 107




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 73 here 63175.073


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00111   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 108




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 74 here 63175.074


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00112   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 109




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 75 here 63175.075


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00113   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 110




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 76 here 63175.076


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00114   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 111




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 77 here 63175.077


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00115   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 112




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 78 here 63175.078


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00116   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 113




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 79 here 63175.079


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00117   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 114




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 80 here 63175.080


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00118   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 115




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 81 here 63175.081


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00119   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 116




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 82 here 63175.082


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00120   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 117




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 83 here 63175.083


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00121   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 118




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 84 here 63175.084


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00122   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 119




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 85 here 63175.085


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00123   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 120




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 86 here 63175.086


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00124   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 121




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 87 here 63175.087


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00125   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 122




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 88 here 63175.088


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00126   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 123




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 89 here 63175.089


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00127   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 124




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 90 here 63175.090


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00128   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 125




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 91 here 63175.091


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00129   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 126




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 92 here 63175.092


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00130   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 127




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 93 here 63175.093


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00131   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 128




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 94 here 63175.094


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00132   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 129




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 95 here 63175.095


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00133   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 130




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 96 here 63175.096


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00134   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 131




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 97 here 63175.097


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00135   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 132




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 98 here 63175.098


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00136   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 133




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 99 here 63175.099


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00137   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 134




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 100 here 63175.100


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00138   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 135




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 101 here 63175.101


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00139   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 136




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 102 here 63175.102


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00140   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 137




JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 103 here 63175.103


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00141   Fmt 6633   Sfmt 6602   H:\DISTILLER\63175.TXT   DENISE
                                                                                                                 138




                                                                                                                     Æ



JND-48373 with DISTILLER                                                                                                                                           Insert offset folio 104 here 63175.104


                           VerDate Sep 11 2014   05:52 Jun 17, 2026   Jkt 000000   PO 00000   Frm 00142   Fmt 6633   Sfmt 6011   H:\DISTILLER\63175.TXT   DENISE


File and source

File
chrg-116shrg63175.pdf
Size
6,203,082 bytes
SHA-256
95ab6fe10dc52092f0e34f64ddbd04f74300a0678cd92a75d3b25e6025f6a618
Our copy
chrg-116shrg63175.pdf
Original
www.govinfo.gov
Back to top