COVID Fraud of the Week: Washington State Man Charged with Attempting to Launder COVID-19 Relief Money

On July 23rd, the Department of Justice announced that Mukund Mohan, a Washington state tech company executive, was taken into custody for allegedly laundering money he fraudulently received through the COVID-19 related Paycheck Protection Program (“PPP”). After receiving funds through the program, Mohan allegedly transferred over $230,000 to his personal brokerage account. These charges mark another instance of the federal government pursuing individuals who attempt to profit off of the...

COVID-19 Frauds of the Week: Fake Employees and Fake Treatments

Taxpayers, rightfully upset about large companies such as Shake Shack and Ruth’s Chris Steakhouse claiming large sums of Paycheck Protection Program money from the Small Business Administration, should consider shifting some of their ire to applicants posing as the original intended recipients—small businesses—who are getting in on the grift. And for fraudsters who prefer to market unproven products rather than fabricate employee headcounts and loan documentation, opportunities abound amidst the...

Taxpayers Against Fraud Education Fund Launches COVID-19 Anti-Fraud Task Force

Earlier this month, Taxpayers Against Fraud Education Fund (TAFEF)—an anti-fraud public interest organization founded in 1986—launched a task force comprised of former government officials, subject matter experts, and experienced False Claims Act attorneys to help federal and state law enforcement prevent and punish COVID-related fraud.  TAFEF, which has a network of more than 400 attorneys across the country who specialize in unmasking fraud schemes, is uniquely positioned to lend its...

Increased Federal Funds, Incentives, and Requirements for Nursing Homes Brings Worrisome Opportunities for Fraud

The pandemic has exposed the razor thin margin for error by which our most vulnerable are cared for in nursing homes. New aggregate federal data reveal the appalling toll on facility residents and staff: over 31,700 deaths as of June 4, 2020 (an undercounted 1/3 of all US COVID-19 deaths), according to the federal government’s Nursing Home Compare.  Responsive federal funding for nursing homes, requirements for coronavirus reporting, and increased...

A COVID-19 Pesticide, Unproven Treatments, and Splashing Out On SBA’s Dime

The US DOJ continued its efforts to combat the sale of unproven and unregistered COVID-19 treatments and preventatives and charged purported “business owners” for CARES and PPP funds fraud this week. A Georgia woman pleaded guilty to selling an unregistered pesticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). Rong “Vicky” Sun, 34, of Fayetteville, Georgia, will be sentenced on June 29th for the violation. She faces up...

COVID Frauds of the Week: Unproven Tests, Nonexistent Equipment, Price Gouging, and $10 Million in SBA Loans

Fraudsters continue to attempt to capitalize on anxiety and uncertainty during the pandemic by marketing unproven products and services for the prevention, treatment, or cure of COVID-19. This week, we highlight the massive FTC efforts to identify and shut down illegal activities via Warning Letters (around 100 issued to date); two new SEC actions; as well other government actions to quash sales of unproven or nonexistent test kits and therapies,...

COVID-19 Fraud

What potential whistleblowers need to know about reporting fraud related to the Coronavirus (COVID-19) pandemic COVID-19 Fraud & the Role of Whistleblowers The government is rolling out massive spending programs and regulatory changes to fight the COVID-19 pandemic and ease its economic fallout.  Meanwhile, businesses of all kinds are adjusting to sudden new economic realities. With this historical government spending, and the material changes in the regulatory and economic environment,...

The Paycheck Protection Program is a Big Solution to a Big Problem, but it Needs Big Oversight

It’s no secret that our local bodegas, corner nail salons, and go-to restaurants are in trouble. The unprecedented nationwide stay-home initiatives may be flattening the curve, but they’re also threatening to bankrupt millions of small businesses and their employees. The Coronavirus Aid, Relief, and Economic Security (CARES) Act aims to address this problem with numerous programs, including the Paycheck Protection Program (PPP), funded at $349 billion in its first round,...

January 19, 2018

A federal court in New Jersey imposed a $5 million civil penalty and entered a permanent injunction against Dr. Reddy’s Laboratories Inc., the North American subsidiary of Indian pharmaceutical company Dr. Reddy’s Laboratories Limited, for failing to comply with the Poison Prevention Packaging Act (PPPA) and the Consumer Product Safety Act. Specifically, the company distributed household oral prescription drugs in blister packs that were not child resistant as required by...

Whistleblower Types

Do you have information about fraud or misconduct? What are the types of whistleblowing? If you have information about fraud and other unlawful activity, you may be wondering about becoming a whistleblower. Who can be a whistleblower, and how? What laws protect whistleblowers? How can whistleblowers receive a financial reward? On these pages, we describe many of the types of fraud and misconduct – across different industries and contexts –...