COVID-19 RELIEF FRAUD ATTORNEY

LA Criminal Defense Lawyer Discusses Covid-19 Relief Fraud Cases

In response to the Covid-19 pandemic, the Federal Government, as well as the State of California instituted a number of programs to help individuals and businesses weather the economic downturn and other hardships that resulted from the virus and the responses to the virus that affected the ability of people to work, pay rent, pay employees, and much more.  Specifically, California offered business loans and grants, unemployment benefits, stimulus payments, rent assistance, paid sick leave, mortgage assistance, housing, healthcare benefits, and more.  The Federal government similarly issued stimulus payments, small business loans and grants, unemployment benefits, employer assistance to pay workers, and more.  These programs were deemed necessary at various levels of government to help our society cope with the harsh realities of a global health pandemic.  Benefits fraud and loan fraud are not new concepts, and our firm has handled cases involving numerous different types of fraud over the years. 

The fact that many of these programs were new, sought to get money in people's hands fast, and because many people were desperate during the pandemic, has apparently led to a significant number of new fraud cases.  Federal Agencies such as the Federal Bureau of Investigation ("FBI"), United States Secret Service, and the United States Department of Justice ("US DOJ") have been furiously seeking to investigate possible fraud and prosecutions have begun to occur in Federal Courts across the country, many in Los Angeles.  Similarly, the California Attorney General's office has been working hard to uncover

LEARN MORE ABOUT FRAUD LAWS IN GENERAL

INDIVIDUAL BENEFITS FRAUD
Law enforcement and prosecuting agencies in California have long gone after individuals who fraudulently obtain benefits such as welfare, MediCal, unemployment, food stamps and more.  Typically, these cases involve a benefits recipient providing false information (most often failing to disclose income).  Recipients can be charged not only for fraudulently obtaining the unearned benefits, but can also be charged with perjury, as many of the required forms are signed under penalty of perjury.  Perjury is an especially troublesome charge because unlike most felony charges, it cannot be reduced to a misdemeanor.  This means that a conviction for perjury will render a person a felon forever.  Often, the county, state, or even federal government will reach out to a recipient early in the investigation, but that does not mean that criminal charges are not still coming down the line.  Another common example of individual benefits fraud involves recipients who fill out paperwork in another person's name, and receive their benefits.  These schemes involve not only defrauding the government for unearned benefits, but also identity theft.  Due to the relatively low dollar amount of man individual relief payments, law enforcement and prosecuting agencies have not been as aggressive in seeking out individual fraud.  Still, cases involving individual Covid-19-related benefits fraud are beginning to surface, both in state court and in federal court, and are expected to grow significantly in the near future.

BUSINESS GRANTS AND LOANS FRAUD
Due to high dollar amounts, the relief given to businesses during the pandemic has drawn much of the law enforcement attention.  Businesses who received grants and loans as part of a state or federal Covid-19 relief program had to submit documentation to determine their eligibility for relief, and to determine the amount which they would receive.  Some of the early cases against business owners show situations where forged and fraudulent documents have been submitted.  These fraudulent documents made it appear that business owners were eligible to receive benefits, when they were in fact not eligible, or made it appear that the businesses were eligible to receive more than they in fact were.  Small business owners who obtained grants and loans lawfully are not in the clear yet, either.  Most of the Covid-19 relief programs proscribe specific uses for grants and loan funds.  Businesses who received grants or loans can still be charged with fraud if they fail to property spend the money.  Those who use the funds to handle personal expenses will likely find themselves facing charges sooner or later, whether in state or federal court.  In California, the statute of limitations for fraud crimes is four years from the discovery of the fraud, and in Federal Court, the statute of limitations for most crimes if 5 years.  This means that fraud committed in 2020 and 2021 might very well trickle into court throughout the rest of the decade.

DEFRAUDING BUSINESS OWNERS IN APPLYING FOR RELIEF
The California Attorney General's Office, the Small Business Administration, the FBI and others are warning small business owners about scams targeting business owners looking for Covid-19 relief in some form.  Investigations into accountants and tax preparers have been underway for some time, at all levels of government, seeking to uncover fraudulent grant and loan schemes, and early returns show that in many cases the business owners have seemingly not been aware of the fraud taking place (e.g. business owner's submissions have been altered to collect larger sums of money).  Small business owners should be very careful in applying for and receiving relief funds, particularly if working with others for the first time on such matters.

DEFENSES IN COVID-19 RELIEF FRAUD CASES
Every case is different, and there is no substitute for a one on one consultation with an experienced criminal defense attorney to help you better understand your situation.  Still, some of the more common defenses in benefits/loan fraud cases will be mistake of fact (not lying), someone else is responsible for the fraud, there was no fraud, and more.  Careful examination of documents and financial records, as well as thorough investigation are vital to a successful defense in all criminal cases, but none more than complex fraud accusations involving government agencies.

IF YOU OR A LOVED ONE HAS BEEN ARRESTED, CHARGED, OR IS UNDER INVESTIGATION FOR ANY FORM OF BENEFITS FRAUD, CONTACT THE LAW OFFICES OF NICHOLAS LONCAR TODAY FOR A FREE CONSULTATION WITH A LOS ANGELES CRIMINAL DEFENSE ATTORNEY.  213-375-3775.

Useful LA Criminal Defense Resources:
LA Sheriff's Inmate Locator 
Los Angeles Superior Court  
Los Angeles Police Department 
LA County Law Library
Los Angeles Felony Bail Schedule
Los Angeles Misdemeanor Bail Schedule
Los Angeles Public Defender
Los Angeles City Attorney
Los Angles District Attorney
Office of the CA Attorney General
Federal Bureau of Investigation ("FBI")
United States Secret Service
United States Department of Justice

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