Christopher Ferguson, Daniel Davidson, and Samuel Tadmiri write in a recent Law360 article about the future of enforcement against alleged fraud in economic relief programs passed under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The article notes that the CARES Act turned 5 years old in March 2025, but that the statute of limitations was increased to ten years by Congress, meaning that “CARES Act fraud investigations will likely be active for the next five years and beyond.”
As Chris, Dan, and Samuel explain, the government estimates that it has only scratched the surface in terms of recovering the estimated fraudulent payments that were made as part of CARES Act programs. For example, while more than $1.4 billion in fraudulently obtained CARES Act funds has been recovered, “a 2023 report from the Small Business Administration’s (SBA) Office of Inspector General estimated that over $200 billion in CARES Act loans were ‘potentially fraudulent,’ leaving enforcement authorities with a significant number of targets for future investigations,” the trio assert.
Additionally, the government has been very successful in the cases it has brought over the past five years. The Government Accountability Office (GAO) reported in May 2025 that as of the end of 2024, the federal government had over 2,500 convictions in pandemic fraud prosecutions and a 96 percent conviction rate. More than 80 percent of those convicted received jail sentences, and nearly all were ordered to pay restitution, with some amounts exceeding $1 million.
As enforcement continues over the next five years, the article notes that the False Claims Act (FCA) is likely to be used more and more against suspected CARES Act fraud. In recent years, the government has utilized the FCA to pursue those who made false claims on applications for loans or grants under the Payroll Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) – both of which were established by the CARES Act.
Despite the government’s record of success, the trio observe that some defenses are still available to those accused of CARES Act fraud. For example, they note, juries may be sympathetic to defendants who question the complexity of the SBA’s regulations. Additionally, questions about the fungibility of loan proceeds has shown promise as a defense in some cases.
As the article concludes, “The government has accumulated an impressive scorecard over the past five years combatting pandemic fraud. According to the numbers, however, the government still has a long way to go if it hopes to recover anything close to the unprecedented sums purportedly dispersed due to fraud. In light of the current Administration’s prioritization of cases involving waste, fraud, and abuse, pandemic fraud enforcement is likely here to stay for another five years.”
Read a PDF of the article here.
About Chris
Chris has over two decades of experience as a litigator, concentrating his practice on white-collar criminal defense as well as civil tax controversies, criminal tax fraud, and other regulatory enforcement matters. Chris also has extensive experience handling complex civil litigation and internal investigations.
About Dan
A skilled communicator both in and outside the courtroom, Dan Davidson counsels clients facing high-stakes criminal matters, government investigations, and civil and criminal tax controversies. Dan has advised individuals and a diverse array of businesses and non-profit entities facing the threat of criminal prosecution. He is also an experienced courtroom advocate, having appeared in court at all stages of criminal litigation, from arraignments to evidentiary hearings, trials, sentencings, and post-conviction proceedings.
About Samuel
Samuel Tadmiri graduated magna cum laude from Cornell University in May of 2024, where he majored in Environment & Sustainability with a concentration in Food & Environmental Justice and minored in Law & Society.