Liability Dangers for Recipients of CARES Act Funds: Lessons From Past and Present Enforcement Actions
In June, the Senate confirmed Brian D. Miller as the Special Inspector General of Pandemic Recovery (“SIGPR”), whose primary duty is to audit and investigate the distribution of funds provided under the CARES Act and other legislation. Although the SIGPR is new, Saul Ewing Arnstein & Lehr suggests that recipients of PPP funds can look to the past actions of a similar entity—the Special Inspector General for the Troubled Asset Relief Program, or “SIGTARP”—to better understand what to expect from the SIGPR’s audits and investigations.
They address the potential liability that arises from the receipt of CARES Act funds, analyze key takeaways from the SIGTARP’s history of enforcement in connection with the 2008 financial crisis, and draw out lessons from current enforcement actions so that companies can best prepare for and respond to any government investigations of their receipt of CARES Act funds.
