Federal prosecutors say eight have been sentenced to their roles in a multi-year scheme in which the US Covid-19 relief program was defrauded from a $17 million relief program.
The Department of Justice (DOJ) has released the conclusions of the investigation, which began with the charges in 2021.
According to court filings, the group of fraudsters filed fraud claims for both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The program was created during the pandemic to provide emergency financial support to small businesses and self-employed people.
Investigators said the conspiracy used manufactured documents, false business records and coordinated efforts to obtain funds diverted for personal use. Prosecutors said the fraudulent application took away legitimate businesses in aid aimed at covering wages, rent and other important expenses during the Covid-19 crisis.
The DOJ states that once the judgment is completed, all participants in the scheme are responsible. In total, the defendant received a combination of prison conditions, family detention and community confinement and compensation orders.
Officials said pandemic relief scams remain a priority for federal enforcement agencies.
Since 2020, prosecutors have indicted more than 3,500 defendants nationwide for recovering billions of dollars through criminal and civil lawsuits in connection with false relief funds, according to the DOJ.
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