Billions of dollars in pandemic-related fraud remains unresolved, and the government is relying on whistleblowers to enforce consequences for misuse of public funds. 

During the past fiscal year, the U.S. Department of Justice resolved about 270 False Claims Act matters tied to improper Paycheck Protection Program loans. The related settlements and judgments amounted to $48.3 million — the whistleblowers who stepped forward to expose these frauds received awards as provided for in the False Claims Act.

Resolution of more of these cases could go on for years. President Biden signed a law extending the statute of limitations on pandemic relief program fraud to 10 years. That includes civil and criminal fraud enforcement related to the PPP and the Small Business Administration’s COVID-19 Economic Injury Disaster Loan programs.

Recent judgments and settlements cross industries:

• Victory Automotive Group Inc. agreed to pay more than $9 million over allegations that it misrepresented its business to get a PPP loan, which was later forgiven.
• Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan for which it was not eligible.
• John Seasholtz and four of his agricultural companies agreed to pay more than $600,000 over charges of claiming more employees than they had. The companies also will repay certain loan funds, which the Small Business Administration had guaranteed for about $1.8 million.
• The government similarly has pursued companies that helped businesses secure inflated payments.

The DOJ also has been pursuing other pandemic-related fraud, such as health care providers profiting from the crisis by billing the government for unnecessary tests and services.

Pandemic era fraud matters for all citizens. The public money was intended to provide relief amidst a crisis that required rapid distribution of funds. 

Whistleblowers — normal people who see wrong and have the courage to report it — play a key role in the government’s ability to recover this money. And the government rewards them; the False Claims Act allows them to be compensated 15 percent to 30 percent of the recoveries from successful cases.

In fiscal 2023, whistleblowers filed 712 qui tam suits, or lawsuits alleging false claims on behalf of the government.

Those who knowingly and falsely claim money from the United States, or knowingly don’t pay money owed to the government, face triple damages and penalties under the False Claims Act.

At Keller Grover, we feel strongly about helping whistleblowers protect the country against fraud and make sure public money gets to its intended beneficiaries. Through our confidential, free consultations, we can advise potential whistleblowers about the best path forward from the very beginning, helping minimize the impact of reporting, protect rights and achieve the best possible outcome for the situation. Our deep experience litigating both fraud and employment law makes us uniquely skilled to represent whistleblowers.