Borrowers Beware: GAO Ramps Up Efforts To Root Out Fraud Among CARES Act Loan Recipients
The GAO is encouraging individuals – private citizens, government workers, contractors, and others – to anonymously and confidentially report fraud, waste, abuse, and mismanagement associated with the billions of dollars in payments promised under the CARES Act. While many contractors are familiar with the False Claims Act and their liability under it, there will be other recipients of dollars from the Paycheck Protection Program and the Small Business Administration’s modified Economic Injury Disaster Loans program who are not. “The importance of ensuring compliance when seeking federal dollars cannot be overstated, even during a national emergency,” warn attorneys at McCarter & English. “Companies must continually keep abreast of all guidance and refuse to let speed replace accuracy in their filings and requests for government funds.”
