COVID-19

CoreLife Eatery Admits to Pandemic Relief Fraud in Whistleblower Initiated Case, Will Pay $7.8M

By the Constantine Cannon Whistleblower Team On May 5, the government announced that the restaurant chain CoreLife Eatery, LLC admitted to misrepresenting its eligibility for pandemic relief funds. The business, which operates locations in Illinois, Kentucky, Ohio, Pennsylvania, and New York, agreed to pay $7,809,373 to resolve allegations that it violated the False Claims Act by falsely certifying its eligibility...

Enforcement Push Targeting COVID-19 PPP Loan Fraud Continues: Entities Agree to Pay $12M+ to Settle False Claims Act Charges

By the Constantine Cannon Whistleblower Team The emergency phase of COVID-19 might be over, but the government is still uncovering pandemic-related loan fraud as it continues to announce many enforcement actions. This week, the government announced two Paycheck Protection Program (PPP) loan fraud enforcement actions. One case was brought by a whistleblower and involved a Virginia-based non-profit. A separate case...

Scamming the System: $10M+ Paid to Settle COVID-19 PPP Loan Fraud Allegations in 2 Cases Brought by Whistleblowers

In the deluge of recent enforcement actions battling COVID-19 fraud, the government announced that a wide range of companies fraudulently certified their loan eligibility and received Paycheck Protection Program (PPP) loans intended for qualifying small businesses seeking emergency relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Just in the past few weeks, two separate companies, a...

A COVID-19 Club Con: The Detroit Club Owners and Operators Settle False Claims Act Allegations

In the latest example of the government’s ongoing crackdown on Covid-19 fraud, a Michigan-based hotel, social club, and restaurant, The Detroit Club, along with its owners and operators, will pay $357,669 to settle allegations that they defrauded COVID-19 pandemic relief programs in violation of the False Claims Act. The settling parties/defendants include Detroit Management Corporation, Lynn Kassotis, Citi...

Vix Technology Inc. Pays $2M+ to Settle Allegations of COVID-19 PPP Loan Fraud

Whistleblowers have been instrumental in the surge of recent government actions against COVID-19 relief fraud. On March 19, the government announced that Vix Technology Inc. (“Vix”) will pay double damages of $2,144,114 to resolve allegations that the company fraudulently submitted their qualifications for, and received, a COVID-19 Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration...

Another Whistleblower Helps DOJ Go After COVID-19 Fraud

On March 12, the Department of Justice (DOJ) announced that Florida resident Patrick Walsh and his companies agreed to pay roughly $20 million to settle charges they violated the False Claims Act by defrauding the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. This is just the latest DOJ action to go after COVID relief fraud, which remains a top enforcement priority for the...

COVID-19 Con: Connecticut Company Pays $2M+ to Settle False Claims Act Allegations Related to PPP Loan

Although the pandemic has ended, government enforcement against fraudsters who took advantage of emergency government assistance programs continues. On February 25, in a case brought by a whistleblower, the government announced that the Waterbury, Connecticut company, MacDermid Incorporated paid $2,226,623.62 to settle False Claims Act allegations that its subsidiary, Coventya Inc., falsely certified its...

DOJ Principal Deputy Assistant Attorney General Credits Whistleblowers, Identifies 2024 Priorities

DOJ Principal Deputy Assistant Attorney General Brian Boynton recently spoke at the 2024 Federal Bar Association’s Qui Tam Conference.  Here are a few key takeaways from his remarks, which can be found here.

1. Crediting Whistleblowers. Boynton lauded whistleblowers, calling them “a critical source of [DOJ’s] enforcement efforts,” and he thanked them and their counsel for their efforts, adding that the DOJ...

Scoundrel Spotlight - COVID-19 Fraudster Lourdes Navarro

This week's Scoundrel in the Spotlight is Lourdes Navarro and her husband Imran Shams.  The married pair ran the LA County medical lab Clinical Laboratory Inc. (also called Health Care Providers Laboratory).  Their lab performed COVID-19 screening tests primarily for nursing homes and other facilities catering to the elderly population.  Last Thursday (October 5), Navarro pleaded guilty to fraudulently billing the...

GAO Highlights Massive Fraud of Government Funds for Unemployment Insurance During COVID Pandemic

On September 12, 2023, the United States Government Accountability Office (GAO) published a report estimating between $100 billion and $135 billion in unemployment insurance fraud during the COVID-19 pandemic (from April 2020 to May 2023).  This represents roughly 11-15% of the total unemployment insurance benefits paid during the pandemic, or as the Washington Post put it, the GAO “found the theft encompassed...