WASHINGTON (TNND) — The quest to recover pandemic relief funds that have been misappropriated by fraudsters remains a key focus for certain members of Congress. As investigations proceed, lawmakers are advocating for an extension of the authority to pursue fraud claims, with billions of dollars on the line.
In response to the COVID-19 pandemic, a variety of relief programs were created to assist businesses and workers impacted by shutdowns. The Small Business Administration (SBA) estimates that around $200 billion in potentially fraudulent relief loans have been disbursed. Efforts to reclaim these funds are ongoing, with Republicans criticizing the Biden administration for lacking adequate oversight.
“We owe it to the American people to uncover the details of the largest theft of taxpayer dollars in U.S. history,” stated Rep. James Comer, R-Ky., in February 2023. “We must ascertain where this money ended up, how much reached fraudsters or ineligible participants, and what measures need to be implemented to prevent this from happening again.”
A government accountability office report published in late March indicated that the SBA could not pursue nearly 2 million fraud claims due to incomplete data. Some authority to continue chasing pandemic program fraud is nearing its expiration, including a program aimed at supporting venues and artists during shutdowns. Business Insider reported that a number of well-known artists misused millions from the program on extravagant items such as private jets, clothing, and lavish parties.
In light of this, Sen. Joni Ernst, R-Iowa, and Rep. Roger Williams, R-Texas, have introduced legislation to extend the statute of limitations to 10 years for certain programs, providing additional time to tackle fraudulent activities.
“Thousands of diligent small businesses were denied crucial relief because con artists, gang members, and felons exploiting COVID drained the programs. Every single fraudster who has stolen from taxpayers will be held accountable,” asserted Sen. Ernst in the announcement regarding her bill.
Ken Dieffenbach, the Executive Director of the Pandemic Response Accountability Committee (PRAC), urged lawmakers last month to keep the committee from being disbanded later this year in order to continue addressing fraud claims. He recounted several attempts by individuals to defraud the government.
“We’ve seen applicants who filed in five different states or those using names like Charlie Chaplain, Abraham Lincoln, or Foghorn Leghorn—three individuals did this in pandemic programs, but thankfully, they were stopped before any funds were disbursed,” Dieffenbach remarked during the March House Oversight hearing.
In its recent report to Congress, PRAC stated that its efforts have aided investigations into over 23,000 individuals. If the committee is dissolved, crucial investigation data could be at risk of being lost.
