By Jennifer McDermott -
The Associated Press
At least $ 100 billion has been stolen from aid programs created to help businesses and citizens who lost their jobs due to the COVID-19 pandemic, the Secret Service announced Tuesday.
Despite the fact that the amount stolen
represents only 3% of the 3.4 trillion dollars that make up the aid package
, it is still "tempting for criminals," Roy Dotson, national coordinator of fraud recovery from the pandemic of the federal agency.
A blank check from the Treasury Department.Matt Rourke / AP
Most of this figure comes from unemployment fraud.
The Labor Department acknowledged that
some $ 87 billion in unemployment benefits may have been improperly paid
.
The Secret Service said it seized more than $ 1.2 billion in investigating loan and unemployment insurance fraud, and has returned more than $ 2.3 billion in improperly obtained funds by working with financial partners and states to reverse transactions.
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The federal agency also said it has
more than 900 criminal investigations open for fraud
related to the pandemic, with cases in every state, and that it has detained 100 people so far.
The Justice Department reported last week that its fraud section had prosecuted more than 150 defendants in more than 95 criminal cases and seized more than $ 75 million in cash proceeds derived from funds from the Cashier's Check Protection Program. Fraudulently obtained payment (PPP), as well as numerous real estate and luxury items acquired with the proceeds.
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The PPP, one of the best-known programs created through the CARES Act in March 2020,
offered low-interest, forgivable loans to small businesses struggling
to cope with payroll and other expenses during pandemic-related stoppages.
Early in the pandemic, law enforcement targeted fraud related to personal protective equipment, according to the Secret Service.
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Authorities have now prioritized exploiting pandemic-related aid because federal funding through the CARES Act attracted the attention of individuals and organized criminal networks around the world.
"Can we stop the fraud? Will we? No, but I think we can definitely prosecute those who need to be prosecuted and we can do everything we can to recover as much fraudulent funds as we can," Dotson promised.