The federal government is spending trillions of dollars to ease the financial impact of the COVID-19 pandemic on American citizens and businesses. Along with such unprecedented expenditures under the Coronavirus Aid, Relief and Economic Security Act, commonly known as the CARES Act, comes the risk (really the certainty) that bad actors are taking advantage of the current crisis and engaging in fraudulent conduct to unjustly enrich themselves from stimulus funds that are not rightfully theirs. When they do so, they defraud American taxpayers and rob those who need financial support the most.
Take, for example, the Paycheck Protection Program, a signature CARES Act program administered by the Small Business Administration. The PPP aims to help small businesses keep up with payroll, keep their employees employed, and cover other eligible expenses through forgivable loans. If loan applicants knowingly provide false or misleading information in order to obtain PPP loans, they are defrauding the SBA and stealing funds from eligible businesses.
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