WASHINGTON (TNND) — The effort to reclaim pandemic relief funds that have been misappropriated by fraudsters is a top priority for certain members of Congress. As the investigations proceed, legislators are advocating for an extension of the authority to pursue fraud claims, with billions of dollars on the line.
During the peak of the COVID-19 pandemic, numerous relief initiatives were launched to support businesses and individuals affected by shutdowns. The Small Business Administration (SBA) estimated that around $200 billion in potentially fraudulent relief loans were distributed. Ongoing efforts to recover these funds have drawn critiques from Republicans, who argue that the Biden administration has not conducted sufficient oversight.
“We owe it to the American public to uncover the truth behind the largest theft of taxpayer dollars in our nation’s history,” stated Rep. James Comer, R-Ky., in February 2023. “We need to track where this money has gone, how much reached the hands of fraudsters or ineligible recipients, and what measures can be put in place to prevent a recurrence.”
A report from the Government Accountability Office released in late March highlighted that the SBA was unable to pursue nearly 2 million fraud claims due to incomplete data. The authority to continue pursuing fraud related to pandemic programs is about to lapse, including a program aimed at aiding venues and artists during shutdowns. Business Insider reported that some prominent artists misused millions from this program for luxury items such as private jets, clothing, and lavish parties.
In response, Sen. Joni Ernst, R-Iowa, and Rep. Roger Williams, R-Texas, proposed a bill to extend the statute of limitations for certain programs to 10 years, thus providing additional time to target those committing fraud.
“Thousands of hardworking small businesses lost out on much-needed relief because swindlers, gang members, and criminals exploited COVID to drain these programs. Every single con artist who has stolen from taxpayers will face consequences,” remarked Sen. Ernst in the announcement regarding her bill.
The Executive Director of the Pandemic Response Accountability Committee (PRAC), Ken Dieffenbach, urged legislators last month to prevent the committee from dissolving later this year so that it may continue to address fraud claims. He cited numerous attempts by individuals to defraud the government.
“Applicants who have already applied in five other states or those using names like Charlie Chaplin, Abraham Lincoln, or Foghorn Leghorn—at least three individuals attempted this in pandemic programs—were stopped before any funds were disbursed, let me reassure you,” stated Dieffenbach during the March House Oversight hearing.
In PRAC’s recent report to Congress, the committee noted that its work has supported investigations involving over 23,000 individuals. If the committee is disbanded, valuable ongoing investigation data could be lost.
