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‘Mind-boggling’: Billions gone and little to show for it years after rampant COVID fraud

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From The Center Square

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“The estimated amounts of waste, fraud, and abuse in COVID-related programs are simply … mind-boggling,” Subcommittee on Government Operations and the Federal Workforce Chairman Pete Sessions, R-Texas, said at the hearing. “Half a trillion dollars. Maybe more. Much of it lost to criminal actors and our enemies. Often using comically simple tactics.”

Years after the passage of federal COVID-era relief and the subsequent loss of likely hundreds of billions of those taxpayer dollars, lawmakers are still unsure where that money went, how to get it back, and seemingly have done little to prevent it from happening again.

Federal watchdog and other reports estimate anywhere from $200 billion to half a trillion was lost to waste, fraud and abuse across various federal and state COVID-era programs.

“Insiders, including those who worked for state workforce agencies, conspired with organized crime factions and other individuals to defraud state UI programs and the states did little to stop them,” a Republican-led House Oversight Committee report released this week said. “Some states even hired individuals convicted of identity theft to process UI claims.”

Examples like that and the scope of the amount lost was the subject of a House Oversight hearing this week where lawmakers on both sides of the aisle and experts grappled with the scope of the lost funds and what to do about it.

“The estimated amounts of waste, fraud, and abuse in COVID-related programs are simply … mind-boggling,” Subcommittee on Government Operations and the Federal Workforce Chairman Pete Sessions, R-Texas, said at the hearing. “Half a trillion dollars. Maybe more. Much of it lost to criminal actors and our enemies. Often using comically simple tactics.”

The most common among those tactics was stealing unemployment dollars doled out by the federal government during the pandemic.

One inspector general report from the Small Business Adminstration estimated at least $200 billion in taxpayer money was lost.

“We estimate that SBA disbursed over $200 billion in potentially fraudulent COVID-19 EIDLs, EIDL Targeted Advances, Supplemental Targeted Advances, and PPP loans,” the report said. “This means at least 17 percent of all COVID-19 EIDL and PPP funds were disbursed to potentially fraudulent actors.”

Nearly all of those “fraudulent actors” have so far gotten away with the theft.

Congress approved $40 million for the Pandemic Response Accountability Committee, tasked with finding and preventing fraud. That committee and other investigative efforts have shown the COVID-era fraud was rampant and that little has been done to recover those funds.

That committee’s authority expires next year.

“Every dollar that goes to a fraudster doesn’t go to the small business, to the unemployed, to others that Congress were intending to help,” Michael Horowitz, Chair of PRAC, said at the oversight hearing this week. “If we want to continue to advance the fight against improper payments and fraud, we shouldn’t allow this important and fraud fighting tool to expire.”

Horowitz also said at the hearing that there is “clearly insufficient” access to data for oversight, such as accessing Social Security Administration’s death database so that payments are not sent to deceased individuals. He also pushed for his authority to be expanded to helping other agencies.

Orice Williams Brown, chief operating officer at the U.S. Government Accountability Office, also testified at the hearing that federal agencies can do more to prevent fraud of this kind. But federal agencies are not alone in the blame.

The House Oversight report released this week is called the “Widespread Failures and Fraud in Pandemic Unemployment Relief Programs” showing that states mishandled funds doled out by the federal government for unemployment insurance, sometimes with little oversight.

From the report:

The U.S. Government Accountability Office (GAO) estimates 11 to 15 percent of total benefits paid during the pandemic were fraudulent, totaling between $100 to $135 billion. The Department of Labor (DOL) Office of Inspector General (OIG) estimates that at least $191 billion in pandemic UI payments could have been improperly paid, with a significant portion attributable to fraud. As of March 2023, states reported recoveries of improper payments in an amount of only $6.8 billion.

The design of the Pandemic Unemployment Assistance (PUA) program led to massive fraud. During the program’s first nine months, claimants did not have to provide any evidence of earnings or prior work which made the program susceptible to fraud. DOL reported that the PUA program had a total improper payment rate of 35.9 percent.

Both sides have lamented the lost taxpayer dollars, but so far little has been done to prevent it from happening again, even as Congress continues to pass multi-trillion dollar spending bills often with little time for lawmakers to review.

Lawmakers passed two bills in 2023 to increase reporting from federal agencies on fraud and to prevent those previously convicted of financial crimes from receiving certain federal payment.

The House Oversight report recommended stronger security measures, cross checking with other relevant databases, more oversight and transparency, and more documentation from benefit recipients.

“If this is not a call to action…” Sessions said at the hearing. “I simply do not know what is.”

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New report warns Ottawa’s ‘nudge’ unit erodes democracy and public trust

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Justice Centre for Constitutional Freedoms

The Justice Centre for Constitutional Freedoms has released a new report titled Manufacturing consent: Government behavioural engineering of Canadians, authored by veteran journalist and researcher Nigel Hannaford. The report warns that the federal government has embedded behavioural science tactics in its operations in order to shape Canadians’ beliefs, emotions, and behaviours—without transparency, debate, or consent.

The report details how the Impact and Innovation Unit (IIU) in Ottawa is increasingly using sophisticated behavioural psychology, such as “nudge theory,” and other message-testing tools to influence the behaviour of Canadians.

Modelled after the United Kingdom’s Behavioural Insights Team, the IIU was originally presented as an innocuous “innovation hub.” In practice, the report argues, it has become a mechanism for engineering public opinion to support government priorities.

With the arrival of Covid, the report explains, the IIU’s role expanded dramatically. Internal government documents reveal how the IIU worked alongside the Public Health Agency of Canada to test and design a national communications strategy aimed at increasing compliance with federal vaccination and other public health directives.

Among these strategies, the government tested fictitious news reports on thousands of Canadians to see how different emotional triggers would help reduce public anxiety about emerging reports of adverse events following immunization. These tactics were designed to help achieve at least 70 percent vaccination uptake, the target officials associated with reaching “herd immunity.”

IIU techniques included emotional framing—using fear, reassurance, or urgency to influence compliance with policies such as lockdowns, mask mandates, and vaccine requirements. The government also used message manipulation by emphasizing or omitting details to shape how Canadians interpreted adverse events after taking the Covid vaccine to make them appear less serious.

The report further explains that the government adopted its core vaccine message—“safe and effective”—before conclusive clinical or real-world data even existed. The government then continued promoting that message despite early reports of adverse reactions to the injections.

Government reliance on behavioural science tactics—tools designed to steer people’s emotions and decisions without open discussion—ultimately substituted genuine public debate with subtle behavioural conditioning, making these practices undemocratic. Instead of understanding the science first, the government focused primarily on persuading Canadians to accept its narrative. In response to these findings, the Justice Centre is calling for immediate safeguards to protect Canadians from covert psychological manipulation by their own government.

The report urges:

  1. Parliamentary oversight of all behavioural science uses within federal departments, ensuring elected representatives retain oversight of national policy.
  2. Public disclosure of all behavioural research conducted with taxpayer funds, creating transparency of government influence on Canadians’ beliefs and decisions.
  3. Independent ethical review of any behavioural interventions affecting public opinion or individual autonomy, ensuring accountability and informed consent.

Report author Mr. Hannaford said, “No democratic government should run psychological operations on its own citizens without oversight. If behavioural science is being used to influence public attitudes, then elected representatives—not unelected strategists—must set the boundaries.”

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Freedom Convoy protestor Evan Blackman convicted at retrial even after original trial judge deemed him a “peacemaker”

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Evan Blackman and his son at a hockey game 

Justice Centre for Constitutional Freedoms

The Justice Centre for Constitutional Freedoms announces that peaceful Freedom Convoy protestor Evan Blackman has been convicted of mischief and obstructing a peace officer at the conclusion of his retrial at the Ontario Court of Justice, despite being fully acquitted on these charges at his original trial in October 2023.

The Court imposed a conditional discharge, meaning Mr. Blackman will have no jail time and no criminal record, along with 12 months’ probation, 122 hours of community service, and a $200 victim fine surcharge.

The judge dismissed a Charter application seeking to have the convictions overturned on the basis of the government freezing his bank accounts without explanation amid the Emergencies Act crackdown in 2022.

Lawyers funded by the Justice Centre had argued that Mr. Blackman acted peacefully during the enforcement action that followed the federal government’s February 14, 2022, invocation of the Emergencies Act. Drone footage entered as evidence showed Mr. Blackman deescalating confrontations, raising his hand to keep protestors back, and kneeling in front of officers while singing “O Canada.” The original trial judge described Mr. Blackman as a “peacemaker,” and acquitted him on all charges, but the Crown challenged that ruling, resulting in the retrial that has now led to his conviction.

Mr. Blackman was first arrested on February 18, 2022, during the police action to clear protestors from downtown Ottawa. Upon his release that same day, he discovered that three of his personal bank accounts had been frozen under the Emergency Economic Measures Order. RCMP Assistant Commissioner Michel Arcand later confirmed that 257 bank accounts had been frozen nationwide under the Emergencies Act.

Constitutional lawyer Chris Fleury said, “While we are relieved that Mr. Blackman received a conditional discharge and will not carry a criminal record, we remain concerned that peaceful protestors continue to face disproportionate consequences stemming from the federal government’s response in February 2022.”

“We are disappointed that the Court declined to stay Mr. Blackman’s convictions, which are tainted by the serious infringements of his Charter-protected rights. Mr. Blackman is currently assessing whether he will be appealing this finding,” he added.

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