G&G has launched a private economic crime unit to combat fraud in COVID-19 relief programs.
Here is the challenge: To address the economic effects of the COVID-19 pandemic, the government has established an unprecedented series of programs that are pouring trillions of dollars into the economy. As of March 2021, the amount appropriated by the federal government has reached approximately $6 trillion. History has shown that dishonest businesses and individuals will greet this enormous flow of money as a golden opportunity for fraud.
Here is the solution: A combined public/private partnership can identify and prosecute (civilly and criminally) those who defraud these programs. This type of partnership has succeeded in the past and will succeed again if we are disciplined, collaborative, and prompt.
Whistleblowers will play a central role: Whistleblowers are among the first to identify fraud and take action against it. G&G has a long and successful record representing whistleblowers and generating fraud recoveries for the government, a substantial share of which is then awarded to our clients.
G&G is uniquely qualified: In the early 1990’s, G&G created a private economic crime unit to fight Medicare and Medicaid fraud under our nation’s whistleblower laws, including the federal False Claims Act (a statute first enacted during the Civil War). Read the New York Times article HERE. Over the last 30 years, the firm has recovered over a billion dollars for federal and state agencies with a series of record-breaking cases. Read the National Law Journal profile HERE. These successes set the following records at the time they were achieved: the largest federal False Claims Act recovery (1997); the largest Medicaid recovery under the Act (2003); and the largest single whistleblower recovery (2010). G&G was also involved in obtaining a massive fraud recovery on behalf of Blue Cross and other healthcare insurers against a major drug company, which arose from a prior whistleblower case handled by G&G (2019).
On another front, G&G has been a long-time leader in the area of independent monitoring. G&G has also served as an independent integrity monitor for what is generally recognized as the most important monitorship program in the nation’s history: the post 9/11 World Trade Center disaster clean-up. That program led to a highly unusual, and in some respects unique, post-disaster outcome. The disaster clean-up was completed ahead of time, below budget, and in full compliance with specifications. A Congressional investigative committee called the monitorship program a “Best practice [that] caught and deterred fraud.” Read Neil Getnick’s Congressional testimony HERE and the Committee’s report HERE.
These successes were achieved with a methodology that G&G has developed and refined over three decades. Our methodology employs multi-disciplinary teams in cooperation with government prosecutors and investigators. The resulting public/private partnerships have generated unparalleled results.
Multi-disciplinary teams: G&G pioneered the private-sector use of multi-disciplinary teams to uncover fraud and achieve recoveries for government agencies as well as private businesses and individuals. G&G’s teams include lawyers, investigators, forensic accountants, and industry experts who work together to maximize results.
Public/private partnerships: G&G has developed close working relationships with law enforcement and other government agencies at the federal, state, and local levels to investigate and prosecute a wide range of fraud schemes. G&G has successfully partnered with the United States Department of Justice, United States Attorneys’ offices across the country, the FBI and other federal and state law enforcement agencies, state attorneys general, and local government authorities. Through these public/private partnerships, G&G and its clients have spearheaded parallel prosecutions under federal and state whistleblower laws, the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), and state anti-fraud laws.
Please CONTACT US if you know about fraud in COVID-19 disaster relief programs. Our attorneys will evaluate your information and take steps to pursue recoveries in appropriate cases.
RELATED MATERIALS:
Neil V. Getnick Appears on Podcast to Discuss PPP Fraud and Compliance, Neil V. Getnick, Compliance Perspectives, a podcast of the Society of Corporate Compliance and Ethics (“SCCE”) and the Health Care Compliance Association (“HCCA”), April 1, 2021 (Neil V. Getnick explained how businesses are committing fraud through various means in an attempt to obtain PPP stimulus funds, provided insight for what organizations and individuals should do if they suspect PPP fraud, and previewed his expectations for future enforcement efforts in this area.)
Hurting Long Before COVID-19, Failing Companies Took Stimulus Money Then Closed Anyway, Neil V. Getnick, USA Today, January 13, 2021 (“One of the first things clear from this data is that it’s not the illegal things that threw [the PPP program] off-kilter – it’s the misuse and money that went to unintended recipients.”)
FCA Whistleblowers Are More Important Than Ever Before, Neil V. Getnick, Law360, January 6, 2021, (“The 35-year track record of the anti-fraud Federal False Claims Act and its qui tam whistleblower provisions is a story of great success. Key to that result was the establishment over time of a new paradigm in the form of a public/private partnership. Today, lawyers who represent whistleblowers carry on that tradition by offering needed resources to government officials, in the fight against fraud, waste and abuse of COVID-19 disaster relief funds.”)
Viewpoint: IGs Need More Resources to Combat COVID Stimulus Spending Fraud, Neil V. Getnick, Government Executive, December 17, 2020 (“As Congress considers additional spending, it must also expand funding for inspectors general and other forms of fraud prevention. And when IGs report problems, the issues should be addressed rather than denied.”)
Maximum PPP Loan Went to Rep. Budd’s Family’s Business, NBC Charlotte WCNC, December 7, 2020 (“[Getnick’s] now pushing for more oversight, including better funding for federal inspectors general, more whistleblowers and independent forensic accountants, something he calls private integrity monitors.”)
15 North and South Carolina Businesses Received Maximum $10 Million PPP Loans, Neil V. Getnick, NBC Charlotte WCNC, December 4, 2020 (“The whole point of the program was to reach out to the small businessmen and businesswomen and help them keep their businesses afloat. After all, it’s the Small Business Administration.”)
Sen. McConnell Sends Mixed Signals on $600 Jobless Payments, Neil V. Getnick, ThinkAdvisor, August 5, 2020 (“Whatever differences of opinion may exist, hopefully providing for robust oversight will achieve bi-partisan support.”)
Armed With Whistleblower Tips, U.S. SEC Cracks Down on Coronavirus Misconduct, Reuters, May 26, 2020 (“Getnick said a broad range of misconduct related to the COVID-19 outbreak, such as loan fraud, price-gouging, counterfeit or substandard medical goods, or healthcare fraud, could potentially find their way into the SEC’s remit, due to the breadth of the securities laws.”)
Paycheck Protection Program Loan Forgiveness and Safe Harbor Deadline: Here’s The Latest, Neil V. Getnick, Fast Company, May 14, 2020 (“Moving forward, federal and state legislation involving funding for COVID-19-related issues needs to prioritize protecting against fraud, waste, and abuse.”)