In just under three years, the U.S. Department of Justice task force in charge of investigating and prosecuting instances of fraudulently obtained COVID-19 relief funds has released a report detailing the seizure of more than $1.4 billion in stolen funds and over 3,500 defendants charged with federal crimes.
The DOJ’s COVID-19 Fraud Enforcement Task Force (CFETF) was launched in May 2021, in order to identify fraud, recover assets, and prosecute wrongdoers who exploited the federal government’s massive pandemic-era relief programs for personal gain.
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More than $100 million seized by CFETF came as a result of over 400 civil settlements and judgments associated with federal dollars fraudulently obtained under the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law under then-President Donald Trump in March 2020.
The loss of CARES Act funds incurred related to the more than 3,500 criminal cases prosecuted by CFETF totaled over $2 billion, according to the report.
“Since I established the COVID-19 Fraud Enforcement Task Force three years ago, we have charged more than 3,500 defendants, seized or forfeited over $1.4 billion in stolen COVID-19 relief funds, and filed more than 400 civil lawsuits resulting in court judgements and settlements,” Attorney General Merrick Garland said in a Tuesday press release.
“Our work is not over. We will continue our efforts to investigate and prosecute pandemic relief fraud and to recover the assets that have been stolen from American taxpayers,” Garland said.
CFETF Director Michael Galdo said Tuesday that “much work remains in the fight against COVID-19 fraud,” including the investigation of “transnational fraud and money laundering networks,” suggesting that the pandemic relief program was exploited by foreign nationals as well as U.S. residents.
Last August, Republicans on the House Select Subcommittee on the Coronavirus Pandemic revealed that an estimated $280 billion of COVID-19 relief funds, money that was intended for struggling American families, businesses, and hospitals, was stolen by criminals in the U.S. and overseas.
One instance of fraud cited by the House Republicans occurred in December 2022, when a group of hackers linked to the Chinese Communist Party stole at least $20 million in relief funds by hacking government computer networks in at least six states.
