WASHINGTON (TNND) — The quest to reclaim pandemic relief funds misappropriated by fraudsters continues to be a key focus for various members of Congress. As inquiries progress, legislators are advocating for an extension of the authority to pursue fraud claims, with billions of dollars hanging in the balance.
During the peak of the COVID-19 pandemic, an array of relief programs was initiated to assist businesses and workers impacted by lockdowns. The Small Business Administration (SBA) estimates that around $200 billion in potentially fraudulent relief loans were issued. Efforts to recoup these funds have been ongoing, with Republicans criticizing the Biden administration for lacking adequate oversight.
“We owe it to the American people to uncover the truth behind the largest theft of taxpayer dollars in American history,” Rep. James Comer, R-Ky., stated in February 2023. “We need to trace where this money went, determine how much fell into the hands of fraudsters or ineligible individuals, and establish measures to prevent such occurrences in the future.”
A report from the government accountability office published in late March indicated that the SBA could not pursue nearly 2 million fraud claims due to incomplete data. Some of the authority to continue targeting fraud in pandemic programs is nearing its expiration date, including a fund aimed at supporting venues and artists during the shutdowns. Business Insider highlighted that several prominent artists spent significant amounts from the program on luxury items, such as private jets, clothing, and extravagant parties.
In response, Sen. Joni Ernst, R-Iowa, and Rep. Roger Williams, R-Texas, have introduced legislation to extend the statute of limitations for certain programs to 10 years, thereby allowing additional time to pursue fraudsters.
“Thousands of diligent small businesses were denied critical relief because fraudsters, gang members, and criminals exploited the COVID programs. Every single scam artist who defrauded taxpayers will face accountability,” stated Sen. Ernst in the announcement of her bill.
Ken Dieffenbach, Executive Director of the Pandemic Response Accountability Committee (PRAC), urged lawmakers last month to prevent the committee from disbanding later this year in order to continue addressing fraud claims. He recounted several instances of fraudulent attempts to deceive the government.
“Applicants who have already submitted applications in five other states or those who used names like Charlie Chaplin, Abraham Lincoln, or Foghorn Leghorn—at least three individuals did in pandemic programs—were stopped before any funds were disbursed, let me assure you,” Dieffenbach remarked during the House Oversight hearing in March.
In PRAC’s most recent report to Congress, the committee noted that its efforts have supported investigations involving more than 23,000 individuals. Should the committee be dissolved, valuable data related to ongoing investigations may be lost.
