Whenever a massive federal spending program is underway, fraudsters seek to divert tax dollars from the program’s intended recipients into their own pockets, sometimes to the tune of millions of dollars.
The Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act)—the largest federal stimulus package in U.S. history—is no exception. Some amateurish frauds have already come to light, including scammers who sought funds from the Paycheck Protection Program by certifying that they have dozens or even hundreds of employees that don’t actually exist.
Time will tell, but CARES Act programs may prove to be even more susceptible to fraud than past emergency stimulus measures, not only because of the unprecedented amount of spending but because the oversight mechanisms built into the law are under threat. The highly qualified inspector general originally tapped to lead executive-branch oversight was removed and replaced with a suspected administration loyalist. And the executive branch has signaled it will resist transparency at every turn, which will stymie congressional oversight of CARES Act spending.
The upshot is that, once again, the job of protecting the interests of the American people will fall largely to whistleblowers.
Loevy & Loevy’s commitment to representing whistleblowers—both to expose fraud and to help them receive reward for their public service—is longstanding. And our record of success in such cases is lengthy. If you have non-public information about fraud against the government, please contact us about potential representation.