Associate Deputy AG Kevin Chambers is named director of COVID-19 Fraud Enforcement
An estimated 500 defendants have been charged in cases involving the loss of more than $700 million.
U.S. Attorney General Merrick Garland (left), is with new prosecutor for pandemic fraud, Associate Deputy AG Kevin Chambers.
Photo: Kevin Lamarque-Pool/Getty Images
As President Biden promised in his State of the Union address, the Department of Justice has appointed a prosecutor for pandemic fraud.
The DOJ on Thursday named Associate Deputy Attorney General Kevin Chambers as director for COVID-19 Fraud Enforcement.
Chambers will lead Justice Department efforts that to date have resulted in criminal charges against more than 1,000 defendants with alleged losses exceeding $1.1 billion; the seizure of more than $1 billion in Economic Injury Disaster Loan proceeds; and more than 240 civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion, the DOJ said.
WHY THIS MATTERS
The DOJ is receiving an extraordinary amount of data from state workforce agencies that is key to identifying and prosecuting certain types of fraud, including unemployment insurance fraud, Chambers said.
He plans to focus on large-scale criminal enterprises and foreign actors who sought to profit at the expense of the American people. This will include establishing Strike Teams.
"Our Strike Teams will enhance the department's existing efforts and will include analysts and data scientists to review data, agents to investigate the cases, and prosecutors and trial attorneys to bring charges and try the cases," he said.
"The Justice Department remains committed to using every available federal tool -- including criminal, civil, and administrative actions -- to combat and prevent COVID-19 related fraud," said Attorney General Merrick B. Garland. "We will continue to hold accountable those who seek to exploit the pandemic for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs."
THE LARGER TREND
In March 2020, Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. The DOJ immediately began efforts to identify, investigate and prosecute such fraud, leveraging data analysis capabilities and partnerships.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud.
Fraud schemes involve the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs and COVID-19 healthcare fraud enforcement.
Prominent among the department's efforts have been cases involving PPP and EIDL fraud. Approximately 500 defendants have been charged in over 340 cases with alleged intended losses of more than $700 million.
The department has seized more than $1 billion in EIDL loan proceeds.
Due to the COVID-19 pandemic, up to $860 billion in federal funds have been appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits.
Domestic criminals, ranging from identity thieves to violent street gangs to prison inmates, have also committed UI fraud. In response, the department established the National Unemployment Insurance Fraud Task Force, a prosecutor-led, multi-agency task force with representatives from more than eight different federal law enforcement agencies to coordinate those efforts.
Since the start of the pandemic, over 430 defendants have been charged and arrested for federal offenses related to UI fraud.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
