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The IRS has investigated more than 1,600 cases of COVID fraud and indicted 795 people for such crimes as of February 29.<\/p>\n
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, families and small businesses were able to receive assistance during the pandemic. Some, however, received funds fraudulently and used the money for personal benefit.<\/p>\n
The Criminal Investigations (CI) unit within the IRS has \u201cinvestigated 1,644 tax and money laundering cases related to COVID fraud potentially totaling $8.9 billion, with well over half that amount coming from cases opened in the last year,\u201d reads a statement<\/a> from the IRS.<\/p>\n Of the 795 people indicted, 373 have received an average 34-month prison sentence.<\/p>\n IRS Commissioner Danny Werfel said, \u201cThe work by IRS Criminal Investigation provides a vital role in protecting against fraud and serves a key part in the agency\u2019s wider efforts to ensure fairness in the nation\u2019s tax system. Protecting taxpayers against fraud in pandemic-era programs is just one example of the important role that CI plays in the law enforcement community. A healthy budget for the IRS helps us get the job done, and the work of CI provides a critical safety net to protect the nation against fraud.\u201d<\/p>\n Some of the recent sentences include Rami Saab from Long Island, New York, and Terrence L. Pounds from Toledo, Ohio.<\/p>\n Saab was described as the \u201cmastermind behind a sprawling conspiracy to fraudulently obtain loans amid the COVID-19 pandemic.\u201d He and his conspirators received \u201c$9.6 million in emergency-relief funds intended for distressed small businesses.\u201d<\/p>\n Pounds \u201cobtained millions of dollars in loans and then used the money to purchase several new vehicles, which were later forfeited to the U.S. government.\u201d He claimed the loans were for \u201cnonprofit, faith-based organizations with over $1 million in revenue and 15 employees.\u201d<\/p>\n