COVID-19 Fraud Whistleblower Investigation
The COVID-19 pandemic prompted the launch of the CARES Act and the Small Business Administration’s Paycheck Protection Program (PPP) to support businesses and preserve jobs, offering forgivable loans for essential expenses like payroll and rent. Despite the intent to stabilize the economy, the swift allocation of funds raised the risk of fraud, including misuse of funds, payroll inconsistencies, and obtaining duplicate aid. Businesses and corporations that misused these funds could be liable for fraud under the False Claims Act.
The False Claims Act empowers private individuals to initiate qui tam actions, or whistleblower lawsuits, against fraud perpetrators, specifically targeting the misuse of government and state COVID-19 relief funds. These provisions enable whistleblowers to spotlight fraud, after which the government can choose to intervene, assuming the lead in investigation and prosecution efforts.
For those willing to stand against misuse or mishandling of pandemic relief funds by their employers, the False Claims Act guarantees significant protections, including safeguarding against workplace retaliation with comprehensive remedies such as reinstatement, double back pay, and coverage of legal fees. Moreover, individuals successful in bringing forward qui tam lawsuits can potentially receive substantial rewards, underscoring the importance of whistleblower contributions in maintaining the integrity of COVID-19 relief efforts. Whistleblowers whose cases are successful are entitled to a portion of the amount recovered, with shares typically ranging from 15–25% of the total recovery depending on how much the whistleblower contributed to the action.
If you have knowledge or are aware of any fraud or misuse of pandemic relief-related funds conducted by your employer, please contact the law firm Audet & Partners, LLP by filling out the confidential questionnaire form on this webpage, or by giving us a call at 800.965.1461.