Yesterday, the Justice Department’s COVID-19 Fraud Enforcement Task Force (CFETF) released its 2024 report, which provides a thorough summary of the task force’s efforts and the joint steps taken by its member agencies. The research sheds insight on the coordinated response to widespread fraud in several COVID-19 assistance operations, which became targets for exploitation by fraudsters and other criminal groups seeking to profit from government relief efforts.
The Attorney General, Merrick B. Garland, said, “Since the inception of the COVID-19 Fraud Enforcement Task Force three years ago, we have brought charges against over 3,500 defendants, seized or forfeited more than $1.4 billion in misappropriated COVID-19 relief funds, and initiated over 400 civil lawsuits resulting in court judgments and settlements.” Garland emphasized the continuous commitment to combating pandemic-related fraud, as well as the dogged pursuit of justice to protect the interests of American taxpayers.
Despite the report’s noteworthy achievements, Garland emphasized that the task at hand is far from complete. The Justice Department remains committed to investigating and prosecuting cases of pandemic relief fraud, as well as recovering looted assets. This resolute resolution exemplifies the Justice Department’s unflinching commitment to maintaining integrity and accountability throughout times of crisis.
What is the COVID-19 Fraud Enforcement Task Force?
The COVID-19 Fraud Enforcement Task Force is a specialized team established by the US Department of Justice (DOJ) to combat COVID-19 pandemic-related fraud. It includes several federal agencies and departments, including the DOJ’s Criminal Division, the Federal Bureau of Investigation (FBI), the United States Postal Inspection Service, the Small Business Administration (SBA), the Department of Health and Human Services (HHS), and others.
The task force’s principal goal is to investigate and prosecute people and organizations involved in fraudulent schemes that exploit the COVID-19 situation for personal gain. These schemes may involve fraudulent claims for government assistance programs, counterfeit medical supplies, bogus treatments or cures, price gouging, phishing scams, and other types of financial fraud aimed at individuals, corporations, and government organizations.
The task force identifies, investigates, and prosecutes offenders of COVID-19-related fraud, intending to discourage future fraudulent activity and protect public funds intended for pandemic assistance. Furthermore, the task force attempts to educate the public about prevalent fraudulent schemes and offers advice on how to avoid falling prey to such scams.
Overall, the COVID-19 Fraud Enforcement Task Force is critical to preserving the integrity of government assistance programs and allocating resources correctly to meet the public health and economic concerns faced by the epidemic.
Combatting COVID-19 Fraud: Achievements, Challenges, and Ongoing Efforts of the Task Force
To date, the coordinated efforts of the task force’s member agencies have produced considerable results in the fight against COVID-19-related fraud. Criminal charges have been filed against approximately 3,500 individuals, resulting in losses of more than $2 billion. Furthermore, civil enforcement efforts resulted in over 400 settlements and judgments worth more than $100 million. In addition, assets worth more than $1.4 billion have been confiscated or forfeited as part of this investigation.
Deputy Attorney General Lisa Monaco underlined the Department of Justice’s commitment to using a data-driven prosecution strategy to address COVID-19 fraud. She emphasized the necessity of working with law enforcement and the Inspector General community to achieve practical results, such as charging thousands of offenders and recovering significant amounts of misused cash. Monaco also advocated for additional steps to assist law enforcement, including an extension of the statute of limitations and the availability of critical funds and data analytics capabilities to support prosecutorial efforts.
Director Michael C. Galdo of the COVID-19 Fraud Enforcement Task Force acknowledged the substantial progress made thus far but also noted the remaining challenges in preventing pandemic-related fraud. Galdo emphasized that investigations into numerous types of fraud, including identity theft, global fraud networks, and large-scale individual fraud, are still underway. He cited the task force’s improved data analytics skills as a means of expediting and improving fraud investigations.
While celebrating the task force’s efforts, Galdo reaffirmed his commitment to combating COVID-19 fraud, prosecuting offenders, and dismantling criminal networks that hurt citizens.
Task Force Vigilance: Combating Complex Pandemic Fraud
In addition to the aforementioned efforts, the COVID-19 Fraud Enforcement Task Force (CFETF) has established five specialized strike groups dedicated to combating the most complex and damaging cases of pandemic-related fraud. These strike forces, strategically stationed in various U.S. Attorneys’ Offices across the country, including the Districts of Maryland, New Jersey, Colorado, the Southern District of Florida, and a joint task force in the Eastern and Central Districts of California, have helped indict 250 defendants to date. Gang affiliations, experienced fraudsters, and international syndicates have all been charged with a variety of cyber-enabled fraud schemes aimed at both civilians and government programs.
Furthermore, Covid-19 Fraud Enforcement Task Force members spearheaded the formation of the National Unemployment Insurance Fraud Task Force (NUIFTF), a pioneering program aimed at combating fraud in the unemployment insurance industry. This task force has created a ground-breaking data-sharing architecture and led the development process inside the Organised Crime Drug Enforcement Task Forces’ (OCDETF) International Organised Crime Intelligence Operation Centre (IOC-2) by exploiting pandemic relief data. Through this novel technique, the NUIFTF has distributed over 100 actionable leads and intelligence findings related to suspected fraudulent activity totaling more than $3 billion.
Empowering Collaborative Action Against Pandemic Fraud
In May 2021, the Attorney General took swift action by establishing the COVID-19 Fraud Enforcement Task Force, a critical endeavor targeted at mobilizing the Justice Department’s collective resources in coordination with other government agencies. This concentrated effort was initiated to ramp up the fight against pandemic-related fraud, which had grown during the crisis. The task force’s principal goal is to strengthen investigations and prosecutions of both domestic and international criminal enterprises found to be primarily responsible for pandemic-related fraudulent operations.
The COVID-19 Fraud Enforcement Task Force is made up of members from various Justice Department components, including the Criminal Division, Civil Division, U.S. Attorneys, Executive Office for U.S. Attorneys, FBI, Organized Crime Drug Enforcement Task Forces, Office of the Inspector General, National Unemployment Insurance Fraud Task Force, and Interpol Washington.
Furthermore, the Fraud Enforcement Task Force’s performance is aided by key interagency partners such as Homeland Security Investigations, IRS Criminal Investigations, the United States Secret Service, the United States Postal Inspection Service, and other individuals from the Office of Inspector General community.
These representatives are from various governmental departments, including the Department of Labor, Department of the Treasury, Tax Administration, Department of Homeland Security, Small Business Administration, Department of Health and Human Services, Department of Veterans Affairs, Social Security Administration, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve Board, Special Inspector General for Pandemic Relief, and the Pandemic.
Conclusion
Furthermore, the Fraud Enforcement Task Force plays an important role in assisting the authorities in charge of delivering relief programs by putting in place preventive measures to prevent fraud. This includes but is not limited to, improving existing coordination mechanisms, identifying and deploying additional resources and methodologies to uncover fraudulent actors and their complex schemes, and facilitating the exchange and application of invaluable information and insights gained from previous enforcement efforts.
The COVID-19 Fraud Enforcement Task Force aims to strengthen assistance programs’ resilience and protect critical resources from exploitation by using joint efforts and a comprehensive strategy. Its goal is to dissuade fraudulent operations, safeguard vulnerable populations, and maintain the integrity of government pandemic responses through increased vigilance and strategic collaboration.
