IRS-CI releases latest COVID-related fraud investigation statistics

The agency has conducted more than 660 investigations with alleged fraud totaling more than $1.8 billion

WILMINGTON, NC (WWAY) — IRS Criminal Investigation (IRS-CI) released investigational statistics today about COVID-related fraud investigations conducted by the agency over the past two years.

The agency investigated 660 tax and money laundering cases related to COVID fraud, with alleged fraud in these cases totaling $1.8 billion.

These cases included a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.

“The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law nearly two years ago as a safety net for Americans in light of an unprecedented health crisis. Unfortunately, even during times of crisis, criminals pop their heads out to look for ways to take advantage of those in their most vulnerable state. Thanks to the investigative work of IRS-CI special agents and our law enforcement partners, we’ve ensured criminals who try to defraud CARES Act programs face consequences for their actions,” said IRS-CI Chief Jim Lee.

“The COVID pandemic has brought out the best in some people, while bringing out the worst in others,” said Charge Donald “Trey” Eakins, IRS Criminal Investigation Special Agent in Charge, Charlotte Field Office. “The Paycheck Protection Program was designed to help hardworking businesspeople keep their companies afloat during the pandemic – not to line the pockets of unscrupulous fraudsters. We are pleased to work with our law enforcement partners to prosecute these crimes and IRS-CI will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”

Those consequences include a 100% conviction rate for prosecuted cases with prison sentences averaging 42 months.