An uptick in fraud prosecutions and litigation has historically followed federal crisis relief programs. In addition to this historical trend, the attention fraud related to the novel coronavirus ("COVID-19") has garnered from the U.S. Department of Justice ("DOJ") and United States Attorneys' Offices ("USAOs") signals that there will be an increase in fraud investigations and prosecutions for years following the coronavirus pandemic. Likewise, COVID-19 relief funding—and the potential to allege abuses relating to such funding—will likely result in an increase in private civil lawsuits.
Since the COVID-19 outbreak, Jones Day released a number of publications outlining issues concerning COVID-19-related fraud and surveying the nationwide regulatory, enforcement, and litigation landscape. This Jones Day White Paper focuses on what has happened within that landscape during the first six months since the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was enacted. Recipients of federal crisis relief funds in all industries should consider proactive steps to prepare for any government inquiries and private suits, including understanding the requirements imposed by COVID-19 funding programs.
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