Fraudulent Pandemic Relief Claims in 2026. Ongoing Pandemic Fraud Investigations

March 16th, 2026
Posted By
Hope C. Lefeber
Handcuffs and roll of American one hundred dollar banknotes

Many people believe pandemic relief fraud is a thing of the past, but the federal government continues to identify, investigate, and prosecute fraudulent pandemic relief claims in 2026. In many cases, these investigations are part of broader enforcement efforts targeting pandemic fraud connected to relief programs created during the COVID-19 crisis.

The Scope of Pandemic Relief Fraud

During and after the COVID-19 pandemic, the Small Business Administration (SBA) and other federal agencies oversaw the distribution of trillions of dollars in financial aid through programs like the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Economic Injury Disaster Loan (EIDL) program, 7202 COVID Credits, Employee Retention Credits (ERC), and the Payroll Protection Program (PPP). At the same time, the Department of Labor expanded unemployment benefits, and the IRS issued stimulus payments and tax credits.

The speed at which the government responded to the crisis created vulnerabilities that led to widespread fraudulent applications for pandemic relief. While aid programs were created and deployed quickly, fraud investigation and enforcement moved slowly, sometimes continuing even years after the COVID-19 pandemic had largely ended. The Department of Justice and its partner enforcement agencies continue to monitor, investigate, and prosecute allegations of pandemic relief fraud.

Why Pandemic Relief Fraud Cases Are Still Being Filed Today

The list of pandemic relief fraud claims being investigated and prosecuted by the FBI and U.S. Attorney’s Offices is long and includes hundreds of cases filed in 2025 and the early months of 2026. Many of these claims are being filed under federal statutes with long statutes of limitations—some as long as 10 years or more. Government agencies continue to cross-reference data for reporting discrepancies, and whistleblowers continue to report fraudulent conduct, leading to new investigations and prosecutions for pandemic relief fraud. In practical terms, this means conduct from 2020 could still be prosecuted as late as 2030, and enforcement efforts targeting pandemic fraud remain a significant priority for federal authorities.

Common Charges and Potential Penalties in Cases of Pandemic Relief Fraud

Individuals being investigated for pandemic relief fraud may face charges under various federal fraud statutes, including:

  • Bank Fraud (Title 18 U.S.C. Section 1344) - A bank fraud charge requires the intent to execute a scheme or artifice to defraud a financial institution to obtain money or assets owned by or under the custody or control of a financial institution by means of false or fraudulent pretenses, representations or promises. The maximum penalties are 30 years in prison and extensive fines, restitution and forfeiture.
  • Wire Fraud (Title 18 U.S.C. Section 1343) - Wire fraud requires the knowing and intentional execution of a scheme or artifice to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations or promises, by the transmission of a wire, radio, television, computer, cellphone. A conviction of wire fraud carries a maximum sentence of 20 years in prison and extensive fines, restitution and forfeiture.
  • Conspiracy and Conspiracy to Commit Wire Fraud (Title 18 U.S.C. Section 371, 1349) - Conspiracy does not require that a person actually commit the crime. All that is required is proof of an “agreement” with another person to commit the crime. This crime carries the same penalties as wire fraud and/or any other federal crime as to which the conspiracy applies.
  • Mail Fraud (18 U.S.C. Section 1341) - Mail fraud has the same requirements as wire fraud, but requires the transmission of the documents through the U.S. Mail, Fed Ex, UPS or any other mail carrier.
  • Identity Theft, Aggravated Identity Theft (18 U.S.C. Section 1028, 1028A) - Identity Theft and Aggravated Identity Theft requires the use of identification documents of another person without lawful authority. These are serious charges and Aggravated Identity Theft can result in a mandatory minimum consecutive two year sentence of imprisonment.
  • False Statements to a Financial Institution (15 U.S.C. Section 645) - This crime occurs when a person knowingly makes false statements or willfully overvalues a property or security to influence a bank or government agency. This charge carries a maximum penalty of two years imprisonment.
  • Fraud in Connection with Major Disaster or Emergency Benefits (18 U.S.C. Section 1040) - This criminal offense requires knowingly making false statements to obtain a benefit paid out for disaster relief, such as under the CARES Act. This applies to EIDL loans. This charge carries a maximum penalty of 30 years in prison and extensive fines, penalties and restitution.

Defenses to Allegations of Pandemic Relief Fraud

Every situation is unique, and allegations of fraud do not necessarily lead to a conviction. An experienced criminal defense attorney can represent you during a pandemic relief fraud investigation, minimize the likelihood that you will be charged with a crime, and fight to protect your rights.

Common defenses to pandemic relief fraud charges include:

  • Lack of Intent. Most fraud claims require proof of criminal intent. Presenting evidence that the actions were the result of negligence, an honest mistake, or lack of knowledge rather than a deliberate and conscious plan can help avoid a conviction for fraud.
  • Good Faith Reliance on Professionals. Accountants,banks, payroll companies, and loan processors helped prepare countless applications for pandemic relief. Showing they provided inaccurate information can help avoid fraud charges being filed and/or the likelihood of a conviction.
  • Confusing Guidance. Pandemic relief programs were implemented quickly, and official guidance changed rapidly. Borrowers who relied on interim rules or informal advice that was later adjusted or clarified rightfully relied on this information and should not be convicted of fraud or other related criminal charges.

Can a Federal Fraud Defense Attorney Help?

While the pandemic may feel like a closed chapter, from an enforcement standpoint, it is not. Pandemic relief fraud enforcement remains a priority, and the government remains committed to investigating and prosecuting these allegations. But investigation is not the same as a conviction. If you or your business is under investigation for pandemic relief fraud, you need an experienced attorney on your side who will work proactively to address the allegations.

Hope Lefeber has over 30 years of experience defending individuals charged with crimes in federal court. She represents executives, professionals, businesspeople, and individuals from all walks of life who are facing federal criminal charges.

Contact the Law Offices of Hope Lefeber

Contact the federal defense law office of Hope Lefeber today. Consultations are free and confidential.