U.S. Department of Labor OIG, Department of Justice is Combatting COVID-19 Fraud but Reminds the Public to Remain Vigilant (USAO WD-LA 10/20/2020) (2020-11-16)

Summary

An October 20, 2020 press release from the U.S. Attorney's Office for the Western District of Louisiana, announced by Acting United States Attorney Alexander C. Van Hook, reminding the public to be vigilant against COVID-19 fraud. It recounts the Department of Justice response, including the National Center for Disaster Fraud taking coronavirus complaints and the DOJ Hoarding & Price Gouging Task Force. The release states the NCDF had received more than 76,000 tips, and that the department had charged 65 defendants in 50 separate cases relating to the Paycheck Protection Program with a total intended loss of more than $227 million. It also states that fraud or money laundering had been charged in 12 cases relating to unemployment insurance, alongside a National Unemployment Insurance Fraud Task Force formed with DOL-OIG.

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“U.S. Department of Labor OIG, Department of Justice is Combatting COVID-19 Fraud but Reminds the Public to Remain Vigilant (USAO WD-LA 10/20/2020) (2020-11-16).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-department-of-justice-is-combatting-covid-3a1ec27e3b/, SHA-256 16d3775525b60d0a157cba2fea23c42e9aab72b806b4db8299486dfc65d9388a.

Full text

Department of Justice
U.S. Attorney’s Office
Western District of Louisiana

FOR IMMEDIATE RELEASE
Tuesday, October 20, 2020

Department of Justice is Combatting COVID-19 Fraud but
Reminds the Public to Remain Vigilant
SHREVEPORT, La. – The Department of Justice is reminding members of the public to be
vigilant against fraudsters who are using the COVID-19 pandemic to exploit American consumers
and organizations and to cheat disaster relief programs, Acting United States Attorney Alexander C.
Van Hook announced. In particular, the department is warning the public about scams perpetrated
through websites, social media, emails, robocalls, and other means that peddle fake COVID-19
vaccines, tests, treatments, and protective equipment, and also about criminals that fabricate
businesses and steal identities in order to defraud federal relief programs and state unemployment
programs.

At the direction of Attorney General William Barr on March 16, 2020, the Department of Justice
mobilized to safeguard Americans from coronavirus-related fraud and other illegal activity. On
March 18, Deputy Attorney General Jeffrey A. Rosen instructed the National Center for Disaster
Fraud (NCDF) to take coronavirus-related complaints from the public and facilitate information
sharing among law enforcement partners and regulators, like the Federal Trade Commission and the
Federal Drug Administration. The Deputy Attorney General tasked U.S. Attorneys to appoint
Coronavirus Fraud Coordinators in each judicial district, including the Western District of Louisiana,
who has done that very thing. Our office, along with many other U.S. Attorney’s Offices, have also
established a regional task force to improve federal, state, and local law enforcement coordination
and these members are working diligently to track down any and all complaints that are received in
connection with these type of crimes. On March 24, following the President’s invocation of his
authorities under the Defense Production Act, the Attorney General formed the DOJ Hoarding &
Price Gouging Task Force, which is a nationwide effort to deter, detect, and prosecute hoarding and
profiteering in the sale of health and medical resources essential to combatting the spread of COVID-
19. Memoranda from the Attorney General and Deputy Attorney General prescribing these measures
may be found at www.usdoj.gov/coronavirus/DOJresponse.

To date, the NCDF has received more than 76,000 tips concerning COVID-19-related
wrongdoing. Similarly, the FBI’s Internet Crime Complaint Center has also received more than
20,000 tips regarding suspicious websites and media postings. These tips, as well as reports made
directly to the offices of U.S. Attorneys, FBI field offices, and other law enforcement agencies, have
led to federal law enforcement opening hundreds of investigations.

The department charged its first COVID-19-related fraud case on March 25, and since then, the
department has filed criminal charges in 33 cases across the country involving scam vaccines,
treatments, or testing or price gouging in the sale of scarce medical supplies. Additionally, the
department has initiated civil actions in 11 cases to enjoin fraudulent coronavirus schemes targeting
consumers, including cases against defendants marketing ozone gas, silver-ion solution, and bleach-
based solution as treatments.

The department has also focused on prosecuting bad actors who have exploited federal relief
programs enacted on March 27 under the CARES Act that are intended to assist hard-hit Americans
and businesses. In particular, the department has charged 65 defendants in 50 separate cases to
date that relate to the Paycheck Protection Program (PPP). The total intended loss to the PPP in
those cases is more than $227 million. The defendants in these cases include those brazen enough to
submit PPP loan applications for fabricated businesses named after “Game of Thrones” characters
and to spend PPP loan proceeds on exotic cars, boats, and expensive jewelry.

The department has coordinated closely with the Department of Labor Office of Inspector General
(DOL-OIG) and various other federal law enforcement agencies to stand up the U.S. Department of
Justice National Unemployment Insurance Fraud Task Force.
(See https://www.justice.gov/file/1319301/download.) This task force is charged with investigating
numerous fraud schemes targeting the unemployment insurance programs of state workforce
agencies, which have been distributing additional Pandemic Unemployment Assistance funds
provided for under the CARES Act. To date, the department has charged fraud or money laundering
in 12 cases relating to unemployment insurance, and has also been supporting DOL-OIG’s efforts to
mitigate the threats that transnational criminal organizations and other identity thieves continue to
pose to the important benefits programs on which unemployed Americans rely. The department’s
leadership has been crucial in organizing and focusing the whole of federal law enforcement on this
important issue, including by leveraging the capabilities and resources of the International
Organized Crime Intelligence and Operations Center and by hiring additional prosecutors to
investigate and charge these schemes.

Moving forward, the department also is concerned about, and will aim to deter and prevent, attempts
by wrongdoers to prey upon potential victims by leveraging news about anticipated approval of a
COVID-19 vaccine or about the potential enactment of new disaster relief bills that extend or expand
upon CARES Act relief.

The department encourages the public to continue to report wrongdoing relating to the pandemic to
the NCDF and to remain vigilant against bad actors looking to exploit this national emergency. To
report a scam relating to COVID-19, or if you have information on hoarding or price gouging
of critical supplies necessary to respond to the spread of COVID-19, you can report it without leaving
your home by calling the NCDF Hotline at 866-720-5721 or via the NCDF Web Complaint Form,
available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. You can also
contact the local U.S. Attorney’s Office in Shreveport at 318-676-3600 or in Lafayette at 337-262-
6618 to report any wrongdoing relating to the COVID-19 pandemic.

###

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the
history of our agency at www.Justice.gov/Celebrating150Years.

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Original: www.oig.dol.gov