COVID Frauds of the Week: More Fraud on the PPP

As we enter our third month of nation-wide shelter-in-place efforts, fraudsters continue to exploit government relief programs. For the second week in a row, the Eastern District of Texas DOJ is going after a purported small business owner for defrauding the Paycheck Protection Program (PPP). Samuel Yates has been charged with wire fraud, bank fraud, and making false statements for allegedly submitting fraudulent loan applications under the PPP program. According...

COVID Frauds of the Week: First Charges for Fraud on the PPP

As the COVID-19 crisis continues, so too do the reports of brazen fraud against the vulnerable and the government programs designed to help them.  Like last week, here in our new feature we will focus on some noteworthy trends in government enforcement in this unfortunate new area of fraud. Fraud on Government Spending Notably, we have seen the first of what will undoubtedly be many government enforcement actions targeting fraud...

West Virginia Business Owner Sentenced for COVID Relief Fund Fraud

It appears there is a new name on the list of COVID relief fraudsters—Mark William Bailey, a business owner who evidently couldn’t resist misusing taxpayer-funded pandemic relief for personal luxuries, according to the DOJ this week. After misappropriating approximately $451,237.51 in COVID-19 relief funds guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, through his company RMR Delivery Service Inc., Bailey now...

The Ongoing Effects of COVID-19 Fraud

The legal world continues to navigate the lingering effects posed by the COVID-19 pandemic. Fraud related to relief efforts and financial aid programs remains a significant concern. The DOJ has been cracking down on investigations, and we’re seeing more and more settlements this year. Yesterday, August 13, DOJ reaffirmed its commitment to combating COVID-19 fraud, emphasizing the need for vigilance and public cooperation in detecting and reporting fraudulent activities. Businesses,...

SO-CAL Dental Offices Pay $6.3 Million Settlement for Misuse of COVID-19 Relief Loans

Not looking so sunny for one Southern California Dental company. Yesterday (August 8) it was announced that West Coast Dental Administrative Services LLC (previously known as West Coast Dental Services Inc.), along with its former founders and owners, have agreed to pay $6.3 million to resolve allegations of violating the False Claims Act. This will settle accusations related to the improper acquisition of Paycheck Protection Program (PPP) loans intended for...

Another Busy Week For DOJ False Claims Act Enforcement

While the lazy days of summer may be upon us, there seems to be no slowing down in the efforts of the Department of Justice (DOJ) to combat fraud with the agency settling several False Claims Act matters covering a wide range of fraud and misconduct. This follows a similar post we wrote only three weeks ago highlighting an equally prolific week of DOJ fraud enforcement activity with multiple civil and...

San Diego Nonprofits Settle for $5.8 Million Over Fraudulent Pandemic Loan Claims 

Several nonprofit organizations have agreed to pay over $5.8 million in a settlement for allegations of obtaining Paycheck Protection Program (PPP) loans, the DOJ reported. The U.S. Attorney's Office for the Southern District of California announced these settlements on June 12, 2024.  The allegations revolve around violations of the False Claims Act. According to the government, the nonprofits in question, including two private country clubs and two homeowner associations, knowingly submitted...

DOJ Catch of the Week: Kabbage Inc.

This week's Department of Justice (DOJ) Catch of the Week goes to bankrupt financial technology company Kabbage Inc. (doing business as KServicing).  On Monday (May 13), DOJ announced that the company agreed to pay up to $120 million to settle charges it violated the False Claims Act by improperly securing Small Business Administration (SBA) loans through the COVID relief Paycheck Protection Program (PPP).  The ultimate payout will depend on the...

DOJ Releases False Claims Act Results for 2023

The Department of Justice (DOJ) just released its False Claims Act results for 2023.  By all accounts, it was another big year for the government's primary fraud-fighting tool.  The top-line numbers are roughly $2.7 billion in total recoveries from 543 settlements and judgments, the highest number of settlements and judgments in a single year.  This brings the total tally of False Claims Act recoveries to more than $75 billion since...

Top Ten Non-Healthcare False Claims Act Recoveries for 2023

It was another big year for DOJ enforcement under the False Claims Act, the government's primary fraud-fighting tool.  As usual, most of the recoveries were in the healthcare space with seven of the Top Ten recoveries involving various schemes to defraud Medicare and Medicaid.  See our Top Ten FCA and Top Ten Healthcare FCA listings. While healthcare recoveries dominated the Top Ten, two of the top five recoveries involved government...