Colorado Grand Jury Hands Down First of What Promises to Be Many COVID Relief Fraud Indictments

Case: Almost from the moment Congress passed COVID-19 relief programs, federal enforcement agents have been sounding the warning on relief fraud scams. And now the prosecutions have begun. In one of the first cases, the Justice Department indicted a 56-year-old Colorado for stealing nearly $300,000 from three different COVID relief programs. The feds claim the accused siphoned the money from a medical clinic’s account into his own personal bank account and spent it on travel and lavish home improvements. Significance: The COVID relief programs allegedly targeted in this case are the ones in which many labs and lab owners participated, including: The Accelerated and Advance Payment Program, which provides reimbursement funds in advance of service to help labs and other Medicare providers maintain cash flow during national emergencies; The $50 billion Provider Relief Fund for labs and other providers involved in coronavirus response; and The Paycheck Protection Program providing 1 percent loans to help small businesses meet their payroll, rent, mortgage and utilities obligations.