WASHINGTON (TNND) — The quest for pandemic relief funds that have been misappropriated by fraudsters continues to be a top priority for several members of Congress. As investigations progress, lawmakers 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, various relief programs were launched to support businesses and workers impacted by shutdowns. The Small Business Administration (SBA) has estimated that around $200 billion in potentially fraudulent relief loans were disbursed. Ongoing efforts to recover these funds have been met with criticism from Republicans, who argue that the Biden administration has not provided adequate oversight.
“We owe it to the American people to investigate the largest theft of taxpayer dollars in U.S. history,” stated Rep. James Comer, R-Ky., in February 2023. “We must determine where the money went, how much of it has ended up in the hands of fraudsters or ineligible recipients, and what measures should be implemented to prevent a recurrence.”
A report from the Government Accountability Office released in late March indicated that the SBA was hindered from pursuing nearly 2 million fraud claims due to incomplete data. The authority to continue pursuing fraud related to pandemic programs is set to expire soon, including a program aimed at assisting venues and artists during the shutdown. Business Insider highlighted that several prominent artists spent substantial amounts from the program on luxury items like private jets, clothing, and extravagant parties.
In response, Sen. Joni Ernst, R-Iowa, and Rep. Roger Williams, R-Texas, proposed a bill to extend the statute of limitations for specific programs to 10 years, granting more time to identify and prosecute fraudsters.
“Thousands of diligent small businesses were denied much-needed relief because fraudsters, gang members, and criminals exploited COVID to drain the programs. Every single con artist who has stolen from taxpayers will be held accountable,” remarked Sen. Ernst in a statement announcing her bill.
Ken Dieffenbach, the Executive Director of the Pandemic Response Accountability Committee (PRAC), urged lawmakers last month to avoid allowing the committee to dissolve later this year to continue tackling fraud claims. He recounted numerous instances of attempts to defraud the government.
“Applicants who had already applied in five other states or who used names like Charlie Chaplin, Abraham Lincoln, or Foghorn Leghorn, as at least three individuals did in pandemic programs, were halted before funds were disbursed, let me assure you,” Dieffenbach remarked during the March House Oversight hearing.
In its latest report to Congress, PRAC stated that its efforts have supported investigations into over 23,000 individuals. If the committee is dissolved, critical data related to ongoing investigations could be lost.
