Reports

Georgia woman sentenced to prison, ordered to pay more than $1 million in restitution for COVID fraud

Dallas Woman Pleads Guilty in $7 Million COVID-19 Testing Fraud

Plaquemine Woman Sentenced to 44 Months for Pandemic Benefits Fraud SchemePlaquemine Woman Sentenced to 44 Months for Pandemic Benefits Fraud Scheme

Medicare Improperly Paid Providers for Some Psychotherapy Services, Including Those Provided via Telehealth, During the First Year of the COVID-19 Public Health Emergency

Audit | 5/02/2023

23-A-09-068.01 - Open

We recommend that the Centers for Medicare & Medicaid Services work with the MACs to recover $35,560 in improper payments made to providers for the 128 sampled enrollee days that did not meet Medicare requirements.

23-A-09-068.02 - Closed

We recommend that the Centers for Medicare & Medicaid Services work with the MACs to based upon the results of this audit, notify appropriate providers (i.e., those for whom CMS determines this audit constitutes credible information of potential overpayments) so that the providers can exercise reasonable diligence to identify, report, and return any overpayments in accordance with the 60-day rule and identify any of those returned overpayments as having been made in accordance with this recommendation.

23-A-09-068.03 - Open

Now that CMS has reinstituted most program integrity measures, we also recommend that CMS take the following steps, which if in effect during the audit period could have saved Medicare an estimated $579,667,510 during that period: Conduct medical reviews of psychotherapy services, including services provided via telehealth, to verify that the services are documented and billed in accordance with Medicare requirements.

23-A-09-068.04 - Open

Now that CMS has reinstituted most program integrity measures, we also recommend that CMS take the following steps, which if in effect during the audit period could have saved Medicare an estimated $579,667,510 during that period: Implement system edits for psychotherapy services, including services provided via telehealth, to prevent payments for services that were billed incorrectly.

23-A-09-068.05 - Open

Now that CMS has reinstituted most program integrity measures, we also recommend that CMS take the following steps, which if in effect during the audit period could have saved Medicare an estimated $579,667,510 during that period: Strengthen educational efforts to make providers aware of educational materials on how to meet Medicare requirements and guidance for psychotherapy services, including services provided via telehealth.

23-A-09-068.06 - Open

Now that CMS has reinstituted most program integrity measures, we also recommend that CMS work with the MACs to take the following steps, which if in effect during the audit period could have saved Medicare an estimated $579,667,510 during that period: Review MAC jurisdictions' LCD requirements for psychotherapy services to identify which provisions effectively promote program integrity, and consider additional steps that CMS could undertake to ensure appropriate coverage and payment for psychotherapy services across all jurisdictions.

COVID-19—Forest Service’s Response to the Coronavirus Pandemic at Recreation Sites

OIG identified the prevention measures that Forest Service established for recreation sites in response to the COVID-19 pandemic.

Full Details: Oversight.gov Report Page

Administration of Certain Supplement Federal Funds: Department of Health Services

From March 2020 through June 2022, the Department of Health Services (DHS) awarded $159.6 million in program grants to 1,431 long-term health care and emergency medical services providers. We question $518,700 that DHS paid to 10 grant applicants that did not submit sufficient documentation to support their grant applications or the grant amounts they requested. We provide recommendations to DHS to improve how it administers its grant programs and its Ventilator Stewardship program. We also recommend DHS improve how its Office of Inspector General ensures program integrity.

Houston man sent to prison for $3M PPP loan fraud scheme

Missouri Woman Accused of Multiple Pandemic Frauds

Rhode Island Man Pleads Guilty to Unemployment Fraud Scheme Related to COVID-19 Pandemic

Four Additional Defendants in North Carolina Plead Guilty to National COVID-19 Fraud Scheme

Former Overland Park Man Indicted for $800,000 COVID Fraud Scheme

Foreign National Sentenced for Using Stolen Identity During COVID-19 Relief Prosecution

South Carolina Man and Florida Woman Sentenced in COVID-19 Unemployment Insurance Fraud Scheme

Wood County Man Pleads Guilty After Unlawfully Obtaining Unemployment and COVID-19 Benefits

Disputanta Tax Return Preparer Pleads Guilty to Tax and COVID-19 Fraud

COVID-19: ETA Grant Sub-Recipient Audit - Texas

In March 2020, the COVID-19 pandemic caused many of ETA’s job training programs to cease operation. This interrupted participants’ job training, potentially preventing them from completing their training and getting a job in the areas in which they were trained. This series of audits will focus on how effectively ETA ensured workforce development grant funds were used as intended in the State of Texas during the pandemic.

South Los Angeles Woman Pleads Guilty to Scheming with Others to Use Stolen Identities to Fraudulently Obtain COVID Jobless Benefits

Former Buffalo Man Pleads Guilty To COVID Fraud

Former Postal Service Mail Carrier Sentenced to 15 Months in Prison for Stealing from Her Mail Route Debit Cards Containing Public Benefits

Ten charged with conspiring to make straw purchases of firearms allegedly bought with stolen credit card information

CINCINNATI – Federal agents arrested nine individuals for crimes relating to a conspiracy to buy firearms online and have them shipped to Cincinnati-area federal firearms licensees (FFLs). It is alleged that more than 70 firearms were bought with stolen credit card information and picked up, or attempted to be picked up, at local FFLs via straw purchases that hid the identity of the true buyer. Several of the defendants are also charged with COVID-relief crimes totaling more than $120,000 in alleged loss.

California Man Pleads Guilty To Committing Unemployment Insurance Benefits Fraud

Slidell Woman Federally Indicted for Theft of Public Money, Wire Fraud, and Money Laundering

CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker Support Certifications - Constant Aviation, LLC (Redacted)

Full Details: Oversight.gov Report Page

Audit | 4/21/2023

COVID-19 Fraudsters Charged in Utah for Allegedly Manufacturing, Selling and Distributing at least 120,000 Counterfeit COVID-19 Vaccination Cards

Two Certified Nurse Midwives, One Licensed Practical Nurse and Two Business Owners Among Those Charged in Brooklyn as Part of National Health Care Related COVID-19 Enforcement Action

International Firearms Dealer Involved In $2 Million COVID-19 Fraud Scheme Sentenced To More Than 7 Years In Federal Prison

Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat COVID-19 Health Care Fraud

The Department of Justice today announced criminal charges against 18 defendants in nine federal districts across the United States for their alleged participation in various fraud schemes involving health care services that exploited the COVID-19 pandemic and allegedly resulted in over $490 million in COVID-19 related false billings to federal programs and theft from federally funded pandemic programs.

Philadelphia man admits to operating a multi-state drug enterprise

Charleston Man Pleads Guilty to COVID-19 Relief Fraud Scheme

Hanford Site Subcontractor and Its Tennessee Owner Indicted by Grand Jury for Stealing More than $1.4 Million in COVID-19 Relief Funding

Philadelphia man admits to operating a multi-state drug enterprise

A Philadelphia, Pennsylvania, man has admitted to operating a multi-state organized drug trafficking business dubbed the “19th Street Enterprise.” Christopher Arthur Jones, also known as “Smooth,” pled guilty today to a racketeering enterprise (RICO) conspiracy and fentanyl distribution charges.

Two fraudsters sent to prison for COVID-19 fraud scheme

Orono Resident Agrees to Pay Over $228,000 to Settle Allegations of Fraudulently Obtaining Pandemic Relief Funds

Orange County Woman Sentenced to Over 5 Years in Prison for Embezzling Over $3 Million from Two Anaheim Companies that Employed Her

Following Established Processes Helped FRB New York and the Board Reduce Risks Associated With Lending Facility Contracts

Full Details: Oversight.gov Report Page

Two South Two South Florida Residents Indicted for Stealing Millions in COVID-19 Relief FundsFlorida Residents Indicted for Stealing Millions in COVID-19 Relief Funds

Former North Shore Resident Pleads Guilty to COVID-Relief Fraud

Brothers Charged for Stealing Millions of Dollars in COVID-19 Relief Funds

Middle District Of Florida Task Force Continues To Combat COVID-19 Fraud

Eight Crips Gang Members and Associates Indicted for Racketeering and Numerous Violent Crimes on Long Island

Lake Forest Man Pleads Guilty to Defrauding Buyers of Medical-Grade Gloves Out of $3.2 Million During COVID-19 Pandemic Shortage

South Florida Resident Sentenced to Prison for COVID-19 Paycheck Protection Program Fraud

Former Federal Transportation Security Administration (TSA) Officer Sentenced To 6 Months In Federal Prison For Theft Of Public Money

Restaurateur Sentenced To 57 Months In Prison For Over $6 Million Pandemic Loan Fraud And Interstate Threats

Brothers Sentenced for $1.6M COVID-19 Fraud Scheme

Donaldsonville Woman Sentenced to 78 Months in Federal Prison for Pandemic Benefits Fraud Scheme

Audie L. Murphy Memorial Veterans’ Hospital Missed Opportunities to Distribute Excess Ventilators during the COVID-19 Pandemic

The COVID-19 pandemic caused a surge in demand for ventilators and provoked concerns about potential supply shortages across VA medical facilities. During the course of a previous broader review, the VA Office of Inspector General (OIG) uncovered a potential issue with the number of ventilators procured and stored at the Audie L. Murphy Memorial Veterans’ Hospital in San Antonio, Texas, and sought to determine whether they had been properly requested, acquired, received, and accounted for.The OIG found the facility acquired more ventilators from March 1, 2020, through November 30, 2021, than...

Full Details: Oversight.gov Report Page

Review | 4/11/2023

Alert Memorandum: Closure of Participating Main Street Lending Program Bank

Alert Memorandum:Closure of Participating MainStreet Lending Program Bank

Full Details: Oversight.gov Report Page

Cincinnati man pleads guilty to Covid relief fraud

CINCINNATI– A man who filed for relief under the Paycheck Protection Program and fraudulently claimed that he was running a business during the time he was incarcerated pleaded guilty in U.S. District Court today to one count of wire fraud.

Kanawha County Man Pleads Guilty to COVID-19 Relief Fraud Scheme

Five current and former police officers convicted in multi-million-dollar COVID-19 loan scheme

Foreign National and Former Utah State University Student Club President Facing Federal Charges Relating to CARES Act COVID-19 Fraud

Former City of Miami Police Officer Pleads Guilty to COVID-19 Relief Fraud

Six Individuals Indicted by Federal Grand Jury for perpetrating a Multimillion Dollar Fraudulent Scheme to obtain COVID recovery assistance funds under the Federal CARES Act

SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of six individuals for a multi-million-dollar fraudulent scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Grand Jury charged the defendants with multiple counts of wire fraud, money laundering, Paycheck Protection Program (PPP) fraud, and Economic Injury Disaster Loan (EIDL) fraud. The charging documents claim that from April 2020 through April 2023, the defendants and their co-conspirators caused the...

New Orleans Man Charged With Federal Cares Act Fraud

Detroit Man Pleads Guilty to Stealing $1.6M in Unemployment Insurance Benefits

Final Rule Issued for Home Confinement Under the Coronavirus Aid, Relief and Economic Security (CARES) Act

The Department of Justice has issued a final rule granting discretion to the Director of the Bureau of Prisons to allow individuals placed in home confinement under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to remain in home confinement after the expiration of the covered emergency period.

West Haven Man Sentenced to 8 Years in Federal Prison for Role in Scheme to Steal City’s COVID Relief Funds

Smyrna resident sentenced for $3.3 million multi-state covid-19 Unemployment Insurance fraud scheme

Interim Report: Audit of the Effects the Main Street Lending Program’s Loan Losses Have on Treasury’s Investment in the Program

Interim Report: Audit of the Effectsthe Main Street Lending Program’sLoan Losses Have on Treasury’sInvestment in the Program

Full Details: Oversight.gov Report Page

CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker Support Certifications - Wings Air Helicopters, LLC (Redacted)

The questioned costs on this report is sensitive information.

Full Details: Oversight.gov Report Page

Audit | 3/31/2023

Alert Memorandum: ETA and States Need to Ensure the Use of Identity Verification Service Contractors Results in Equitable Access to UI Benefits and Secure Biometric Data

Full Details: Oversight.gov Report Page

Other | 3/31/2023

Carnegie Man Sentenced to 6½ Years for $3.8 Million Paycheck Protection Program Fraud

Hazelwood Man Admits Series of Schemes Seeking $404,000

Georgia man convicted of fraud in seeking millions of dollars in COVID-19 relief funding

Maryland Man Admits Fraudulently Obtaining more than $2 Million in COVID-19 Relief Funds

Clay County Man Indicted For Fraud Scheme Using Stolen Identities To Obtain Paycheck Protection Program Loans, Filing A False Tax Return, And Stolen Property

Former State Correctional Officer Pleads Guilty to COVID-19 Relief Fraud

Albany Man Pleads Guilty to Unemployment Insurance Fraud

St. Louis Woman Admits Bank Fraud, Pandemic Fraud

Desk Review of Fort McDermitt Paiute-Shoshone Tribe’s Use of Coronavirus Relief Fund Proceeds

Full Details: Oversight.gov Report Page

Supplemental Nutrition Assistance Program: COVID-19 Impact

This informational brief describes changes to the Department of Children and Family Services’ (DCFS) Supplemental Nutrition Assistance Program, including how COVID-19 impacted participation, benefit amounts, and program administration. This brief is intended to provide timely information related to an area of interest to the legislature or based on a legislative request. Among other findings, this brief highlights that the number of SNAP recipients increased 27.5%, from 769,768 prior to the COVID-19 pandemic in February 2020 to a high of 981,751 in January 2021. According to DCFS, the increase...

Fresno Woman Sentenced to More than Six Years in Prison for $300,000 COVID-19 Pandemic Fraud Crime Spree

Final Two Defendants Plead Guilty for Roles in Scheme that Fraudulently Obtained Over $2 Million in COVID-19 Jobless Benefits

CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker Support Certifications - Empire Airlines, Inc. (Redacted)

Full Details: Oversight.gov Report Page

CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker Support Certifications - Corvus Airlines, Inc. (Redacted)

Full Details: Oversight.gov Report Page

North Carolina Office of State Budget and Management: Statewide Federal Compliance Audit Procedures for the Year Ended June 30, 2022

The North Carolina Pandemic Recovery Office, a division of the Office of State Budget and Management, did not adequately monitor $159.9 million in federal funds used for expenditures incurred due to the COVID-19 pandemic. Auditors reviewed the monitoring procedures over subrecipients of state agencies that expended coronavirus relief funds. The office's monitoring procedures required monthly reviews of these subrecipients’ expenditure reports. However, auditors found no evidence of this review. Inadequate monitoring increases the risk that federal funds may not be used in accordance with the...

Hale County Man Pleads Guilty to $4 Million PPP Fraud

Coral Springs Resident Sentenced to 51 Months for Embezzlement Scheme Against Former Employer and Submission of Fraudulent CARES Act Loan Application

Audit of DoD Actions Taken to Implement Cybersecurity Protections Over Remote Access Software in the Coronavirus Disease–2019 Telework Environment

Full Details: Oversight.gov Report Page

Audit | 3/24/2023

D-2023-0057-D000CR-0001-0001.A1 - Closed

(U) Rec. A.1: The DoD OIG recommended that the Director of the U.S. Southern Command - Joint Interagency Task Force South Command, Control, Communications, Computers, Cyber and Intelligence direct its network administrators to scan the VMware Horizon main virtual desktop for malware in accordance with the McAfee Endpoint Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not scanning the main virtual desktop.

D-2023-0057-D000CR-0001-0002.A2a - Closed

(U) Rec. A.2.a: The DoD OIG recommended that the Chief Information Officer of the Department of the Air Force revise its policy to align with the Windows 10 Security Technical Implementation Guide requirement for disabling inactive user accounts after no more than 35 days.

D-2023-0057-D000CR-0001-0002.A2b - Closed

(U) Rec. A.2.b: The DoD OIG recommended that the Chief Information Officer of the Department of the Air Force direct network and system administrators to disable inactive user accounts after no more than 35 days of inactivity in accordance with the Windows 10 Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not disabling the inactive user accounts.

D-2023-0057-D000CR-0001-0003.A3 - Closed

(U) Rec. A.3: The DoD OIG recommended that the Chief Information Officer of the Naval Surface Warfare Center - Panama City Division direct network and system administrators to disable inactive user accounts after no more than 35 days of inactivity in accordance with the Windows 10 Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not disabling the inactive user accounts.

D-2023-0057-D000CR-0001-0004.A4a - Closed

(U) Rec. A.4.a: The DoD OIG recommended that the Chief Information Officer of the Defense Intelligence Agency revise its policy to align with the Windows 10 Security Technical Implementation Guide requirement for disabling inactive users after no more than 35 days.

D-2023-0057-D000CR-0001-0004.A4b - Closed

(U) Rec. A.4.b: The DoD OIG recommended that the Chief Information Officer of the Defense Intelligence Agency direct network and system administrators to disable inactive user accounts after no more than 35 days of inactivity in accordance with the Windows 10 Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not disabling the inactive user accounts.

D-2023-0057-D000CR-0001-0005.A5a - Closed

(U) Rec. A.5.a: The DoD OIG recommended that the Director of the Marine Corps Information Command, Control, Communications, and Computers revise the organization's policy to align with the Windows 10 Security Technical Implementation Guide requirement for disabling inactive users after no more than 35 days.

D-2023-0057-D000CR-0001-0005.A5b - Closed

(U) Rec. A.5.b: The DoD OIG recommended that the Director of the Marine Corps Information Command, Control, Communications, and Computers direct network and system administrators to disable inactive user accounts after no more than 35 days of inactivity in accordance with the Windows 10 Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not disabling the inactive user accounts.

D-2023-0057-D000CR-0001-0006.A6 - Closed

(U) Rec. A.6: The DoD OIG recommended that the Director of the Defense Information Systems Agency Joint Service Provider direct network and system administrators to disable inactive user accounts after no more than 35 days of inactivity in accordance with the Windows 10 Security Technical Implementation Guide, develop compensating controls, or formally accept the risk of not disabling the inactive user accounts.

D-2023-0057-D000CR-0002-0001.B1 - Closed

(U) Rec. B.1: The DoD OIG recommended that the Director of the Defense Information Systems Agency Joint Service Provider direct network and system administrators to revise the vulnerability management program to include mitigation timeframes for all vulnerabilities and develop plans of actions and milestones for all vulnerabilities that cannot be mitigated in a timely manner.

Baltimore Man Pleads Guilty to Federal Charge for Fraudulently Obtaining More Than $1.2 Million in COVID-19 CARES Act Loans

Alexander Barabash, age 52, of Baltimore, Maryland, pleaded guilty today to wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications. The CARES Act was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.

West Haven Woman involved in Scheme to Steal COVID-19 Relief Funds from the City Sentenced to Prison

Coindawg Founder Arrested For Laundering Proceeds Of Fraudulently Obtained Small Business Administration Loans

CEO Of Paycheck Protection Program Lender MBE Capital Pleads Guilty In Connection With Fraudulent Loan And Lender Applications

Broward County Man Sentenced to 108 Months’ Imprisonment for Ponzi Scheme & COVID-19 Fraud

Former West Haven City Employee Sentenced to 13 Months in Federal Prison for Stealing COVID-19 Relief Funds

Former Warren County Businessman Sentenced to Three Years in Prison for Fraudulently Obtaining $1.8 Million in COVID-19 Loans Meant for Small Businesses

Florissant Woman Sentenced to a Year in Prison, Must Repay $101,000 for Pandemic Loan Fraud

Capstone Review of the Federal Bureau of Prisons' Response to the Coronavirus Disease 2019 Pandemic

Full Details: Oversight.gov Report Page

Review | 3/21/2023

White Paper: 7(a) Loan Program During SBA’s Response to the COVID-19 Pandemic

We prepared this white paper to report on the U.S. Small Business Administration’s (SBA) 7(a) loan program performance during SBA’s response to the Coronavirus Disease 2019 (COVID-19) pandemic and address potential risks SBA should consider in managing the program.We identified factors that could impact the 7(a) loan program and should be considered in SBA’s program risk strategy. Specifically, in FY 2021, the total amount of loans increased to $31.4 billion from $19.4 billion in FY 2020 (62 percent increase) and $20.6 billion in FY 2019 (53 percent increase), as did the average loan amount...

Full Details: Oversight.gov Report Page

Florida Resorts Agree to Pay $325,000 to Settle False Claims Act Allegations Relating to False Certifications on a Paycheck Protection Program Loan Forgiveness Application

Florida companies Kingwood Orlando Reunion Resort LLC (Orlando Reunion) and Kingwood Crystal River Resort Corp. (Crystal River) have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application submitted by Crystal River.

Former Florida State Representative Pleads Guilty To Wire Fraud, Money Laundering, And Making False Statements In Connection With Covid-19 Relief Fraud

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COVID-19: ETA Grant Sub-Recipient Audit - Texas

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