A set of arrests last week are a warning to those who defrauded taxpayers through the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, Pennsylvania Attorney General Josh Shapiro said.
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Last week, eight employees of the City of Philadelphia were charged with illegally obtaining n Pandemic Unemployment Assistance through the state in 2020. The money received exceeded $300,000.
The latest arrests add to the 63 made across the state for fraud related to the 2020 CARES Act. So far, state investigators have determined $3.1 million in PUA funds were fraudulently obtained.
Shapiro’s office said other investigations into fraud remain ongoing.
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“If you made some extra cash during the pandemic by fraudulently applying for PUA benefits – turn yourself in and get on a payment plan to repay the taxpayer money stolen. Do the right thing, or potentially face criminal charges and prosecution. The Department of Labor & Industry has set up a Fraud Hotline at 1-800-692-7469 or benefits.uc.pa.gov so you can self-report this fraud. Don’t wait for us to knock on your door,” said Shapiro.
Anyone who has improperly acquired PUA benefits is invited to voluntarily reimburse the money, Shapiro said.
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Anyone who received a letter from L&I notifying them that they owe money should get in touch with them and pay up immediately to avoid the threat of legal action, he added.
Special agents with the the Pennsylvania Attorney General’s Office claim that the eight Philadelphia defendants fraudulently applied for PUA benefits between February 2020 and September 2020, stating on their applications that their employment ended due to the COVID-19 pandemic.
Authorities alleged that their investigation revealed that each defendant applied for and received between between $20,000 and $60,000 in PUA benefits while working for the City of Philadelphia at the time they falsely filed for these benefits.
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Federal COVID-19 relief was fast-tracked in the early days of the pandemic when the economy crashed and unemployment skyrocketed.
In Pennsylvania and other states, there was fraud of pandemic unemployment funds and investigation are underway by state and federal authorities.
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According to research done by the University of Texas, 1.8 million of the 11.8 million Paycheck Protection Program loans that were completed, or $76 billion of the roughly $800 billion in PPP loans, were used for illegal activities.
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