FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – Congress and US Department of Justice respond to Coronavirus Fraud and Abuse of the CARES Act

FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – Congress and US Department of Justice respond to Coronavirus Fraud and Abuse of the CARES Act

May 12, 2020

In response to the Covid-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide necessary funding for small businesses that otherwise might be forced to lay off employees or close down businesses.  Congress did not intend for these funds to be used by large corporations, especially not those with numerous investors or access to capital.  Last week the US government in its first two official actions overseeing government spending of the 2020 CARES ACT: (1) sent demand letters to large public corporations demanding that they immediately return taxpayer funds, and (2) announced its first fraud and abuse indictments related to the CARES act lending.

• Last week, Congress members alluded to the fact that large companies whom utilized the CARES act to obtained forgivable loans, engaged in fraudulent and abusive conduct, unlawfully stripping taxpayer funds intended to keep small businesses afloat during this Coronavirus pandemic. In response to these fraudulent actions, the select subcommittee on the Coronavirus Crisis “sent letters to companies that:  (1) are public; (2) have market capitalization of more than $25 million; (3) have more than 600 employees; and (4) sought and received “small business” loans of $10 million or more.  The panel asked the companies to inform them by May 11 if they will return these funds.  If not, the panel asked the CEOs to produce a range of documents no later than May 15.” Press Release May 08, 2020, from the Committee of Oversight and Reform.

To read further on this CARES act Fraud, please see the link herein: https://oversight.house.gov/news/press-releases/in-first-official-action-house-coronavirus-panel-demands-that-large-public

• On a similar note, on May 05, 2020 the US Department of Justice issued its first indictments for fraud and abuse related to the CARES Act lending. The fraud indictment was issued in response to two men, based out of Rhode Island whom fraudulently sought out more than $500,000 in forgivable loans from the Small Business Association under the Paycheck Protections Program. This alleged business, which successfully secured funding, was not in existence prior to the Covid-19 pandemic, the funds were not used to pay employees as none existed and the men furnished false documents to support their application.  This response by the DOJ is noted to be the first of many which the department intends to take against Coronavirus fraud.

To read further on this Coronavirus Fraud, please see the link herein:https://www.jdsupra.com/legalnews/congress-department-of-justice-turn-97289/

On their website, the Department of Justice advised that they are remaining vigilant in detecting, investigating, and prosecuting wrongdoing and fraud resulting from this Covid-19 pandemic. In a memo to U.S. Attorneys, Attorney General Barr said, “The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated.”  The DOJ is further inviting the public to report any suspicions of Covid-19 Fraud by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further articles discussing Coronavirus and the unprecedented increase in fraud please see the links below: 

• FRAUD I CORONAVIRUS FRAUD I COVID-19 SCAMS – SCAMS AND FRAUDULENT PLOYS AMID CORONAVIRUS PANDEMIC http://dianalegal.com/fraud-i-coronavirus-fraud-i-covid-19-scams-scams-and-fraudulent-ploys-amid-coronavirus-pandemic/
• FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – THE CORONAVIRUS CRISIS HAS CREATED AN INCREASE IN FRAUD AND THE FTC IS WARNING CONSUMERS: http://dianalegal.com/fraud-i-coronavirus-fraud-schemes-i-covid-19-scams-the-coronavirus-crisis-has-created-an-increase-in-fraud-and-the-ftc-is-warning-consumers/
• FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – FRAUDULENT CORONAVIRUS “POP-UP” TESTING SITES: http://dianalegal.com/fraud-i-coronavirus-fraud-schemes-i-covid-19-scams-fraudulent-coronavirus-pop-up-testing-sites/
• FRAUD I CORONAVIRUS FRAUD I SAN DIEGO I COVID-19 SCAMS – SAN DIEGO PHYSICIAN MARKETING CORONAVIRUS “MIRACLE CURE” DRUGS IS CHARGED WITH MAIL FRAUD:http://dianalegal.com/fraud-i-coronavirus-fraud-i-san-diego-i-covid-19-scams-san-diego-physician-marketing-coronavirus-miracle-cure-drugs-is-charged-with-mail-fraud/
• FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – FTC’S ADVISORY ON HOW TO AVOID CORONAVIRUS FRAUD SCAMS: http://dianalegal.com/fraud-i-coronavirus-fraud-schemes-i-covid-19-scams-ftcs-advisory-on-how-to-avoid-coronavirus-fraud-scams/

For further articles discussing Coronavirus and Employment please see the links below: 

• WRONGFUL TERMINATION I EMPLOYMENT I CORONAVIRUS – TERMINATED IN VIOLATION OF CALIFORNIA’S STAY-AT-HOME ORDER: http://dianalegal.com/wrongful-termination-i-employment-i-coronavirus-terminated-in-violation-of-californias-stay-at-home-order/
• WRONGFUL TERMINATION I EMPLOYMENT I CORONAVIRUS – CALIFORNIA EMPLOYEES WRONGFULLY TERMINATED BECAUSE OF COVID-19: http://dianalegal.com/WRONGFUL-TERMINATION-I-EMPLOYMENT-I-CORONAVIRUS-CALIFORNIA-EMPLOYEES-WRONGFULLY-TERMINATED-BECAUSE-OF-COVID-19/
• WRONGFUL TERMINATION I EMPLOYMENT I CORONAVIRUS – Legal Questions About Coronavirus and Employment: http://dianalegal.com/wrongful-termination-i-employment-i-coronavirus-legal-questions-about-coronavirus-and-employment/
• WRONGFUL TERMINATION I CORONAVIRUS – Employees Bringing An Action For Wrongful Termination Because Of The Coronavirus: http://dianalegal.com/wrongful-termination-i-coronavirus-employees-bringing-an-action-for-wrongful-termination-because-of-the-coronavirus/

Articles discussing Fiduciary Duties exclusively are listed below:

• FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty Of Undivided Loyalty. What Happens If A Fiduciary Breaches Their Duty Of Undivided Loyalty? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-fiduciary-duties-are-owed-a-fiduciary-owes-the-duty-of-undivided-loyalty-what-happens-if-a-fiduciary-breaches-their-duty-of-undivided-loyalty/
• FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty To Use Reasonable Care. What Happens If A Fiduciary Breaches Their Duty To Use Reasonable Care? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-fiduciary-duties-are-owed-a-fiduciary-owes-the-duty-to-use-reasonable-care-what-happens-if-a-fiduciary-breaches-their-duty-to-use-reasonable-care/
• FRAUD I BREACH OF FIDUCIARY DUTY – What Is A Fiduciary Duty? What Does A Breach Of Fiduciary Duty Mean? What Is A Fiduciary? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-is-a-fiduciary-duty-what-does-a-breach-of-fiduciary-duty-mean-what-is-a-fiduciary/

Causes of Action for Fraud and Breach of Fiduciary Duty in California: For other articles discussing the various causes of action for Fraud in California, links are included below:

• FRAUD – What Constitutes Fraud In California? What Does A Cause Of Action For Fraud By Intentional Misrepresentation In California Mean? http://dianalegal.com/fraud-what-constitutes-fraud-in-california-what-does-a-cause-of-action-for-fraud-by-intentional-misrepresentation-in-california-mean/
• FRAUD – WHAT CONSTITUTES FRAUD IN CALIFORNIA? WHAT DOES A CAUSE OF ACTION FOR FRAUD BY FALSE PROMISE IN CALIFORNIA MEAN?: http://dianalegal.com/FRAUD-WHAT-CONSTITUTES-FRAUD-IN-CALIFORNIA-WHAT-DOES-A-CAUSE-OF-ACTION-FOR-FRAUD-BY-FALSE-PROMISE-IN-CALIFORNIA-MEAN/

• FRAUD VIA FALSE PROMISE OR PROMISSORY FRAUD: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-fraud-via-false-promise-or-promissory-fraud/
• INTENTIONAL FRAUD AND DECEIT is embedded herein: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-intentional-fraud-and-deceit/
• CONVERSION OR BREACH OF FIDUCIARY DUTY http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/

• FRAUDULENT CONCEALMENT OR CONCEALMENT FRAUD: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-fraudulent-concealment-or-concealment-fraud/
• FRAUD – What Constitutes Fraud In California? What Does A Cause Of Action For Fraud By Concealment In California Mean? http://dianalegal.com/fraud-what-constitutes-fraud-in-california-what-does-a-cause-of-action-for-fraud-by-concealment-in-california-mean/
• FRAUD – Legal Liability For Fraud – Civil Tort For Conversion Or Breach Of Fiduciary Duty: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/
• CONSTRUCTIVE FRAUD OR NEGLIGENT MISREPRESENTATION is embedded herein: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-constructive-fraud-or-negligent-misrepresentation/
• CORPORATE LAW – Corporations Claiming Personhood And Fiduciary Duties: http://dianalegal.com/corporate-law-corporations-claiming-personhood-and-fiduciary-duties/

For Fraud and Breach of Fiduciary Verdicts in California: Our articles discussing Fraud verdicts in California are included below:

• BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action: http://dianalegal.com/breach-of-contract-i-fraud-i-verdict-homeowner-recovers-1-63-million-in-damages-against-mortgage-fraud-broker-in-fraud-negligent-misrepresentation-breach-of-fiduciary-duty-action/
• BREACH OF CONTRACT I BUSINESS LAW – FRAUD DAMAGES IN BREACH OF CONTRACT – COMPANY FAILS TO PAY FORMER PRESIDENT’S SHARES, PRESIDENT SECURES VERDICT FOR $553,000: http://dianalegal.com/breach-of-contract-i-business-law-fraud-damages-in-breach-of-contract-company-fails-to-pay-former-presidents-shares-president-secures-verdict-for-553000/
• FRAUD I BREACH OF FIDUCIARY – Drew Brees Alleges Breach Of Fiduciary Duty Against SD Jeweler Vahid Moradi: http://dianalegal.com/fraud-i-breach-of-fiduciary-drew-brees-alleges-breach-of-fiduciary-duty-against-sd-jeweler-vahid-moradi/
• FRAUD I BREACH OF FIDUCIARY – Jury awards Brees $6 million in Jewelry Fraud Lawsuit: http://dianalegal.com/fraud-i-breach-of-fiduciary-jury-awards-brees-6-million-in-jewelry-fraud-lawsuit/
• BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action: http://dianalegal.com/breach-of-contract-i-fraud-i-verdict-homeowner-recovers-1-63-million-in-damages-against-mortgage-fraud-broker-in-fraud-negligent-misrepresentation-breach-of-fiduciary-duty-action/
• FRAUD – Legal Liability for Fraud – Civil Tort for Conversion or Breach of Fiduciary Duty: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/

Fraud Damages: Our articles discussing Fraud damages in California are included below:

• FRAUD I DAMAGES I CIVIL LITIGATION – Punitive Damages Vs. Compensatory Damages: http://dianalegal.com/fraud-i-damages-i-civil-litigation-punitive-damages-vs-compensatory-damages/
• FRAUD I DAMAGES I CIVIL LITIGATION – What Are Punitive Damages? http://dianalegal.com/fraud-i-damages-i-civil-litigation-what-are-punitive-damages/

Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages:

• BUSINESS FRAUD I CORPORATE FRAUD – Payment From The Victims Of Corporate Fraud – VCFCF: Victims Of Corporate Fraud Compensation Fund: http://dianalegal.com/business-fraud-i-corporate-fraud-payment-from-the-victims-of-corporate-fraud-vcfcf-victims-of-corporate-fraud-compensation-fund/
• BUSINESS FRAUD I CORPORATE FRAUD I DAMAGES – Compensation For “Aggrieved Person” Who Has Obtained A “Final Judgment” Against A Corporation Based Upon The Corporation’s Fraud, Misrepresentation Or Deceit – VCFCF: Victims Of Corporate Fraud Compensation Fund: http://dianalegal.com/business-fraud-i-corporate-fraud-i-damages-compensation-for-aggrieved-person-who-has-obtained-a-final-judgment-against-a-corporation-based-upon-the-corpor/

If you or someone you know has fallen victim to a Coronavirus scam or Covid-19 fraud we encourage you to call our offices today at 619-432-5145 for a free consultation with one of our Fraud Attorneys and Coronavirus Lawyers.