DOJ Uncovers $350 Million In Alleged Fraud

By Reagan Reese

The Justice Department’s National Fraud Enforcement Division has uncovered roughly $350 million in alleged fraud across the Southeastern U.S., the Daily Caller has learned.

The charges span seven states in 17 different cases and involve SNAP benefits, Small Business Administration loans, housing benefits and tax fraud, officials told the Caller. The DOJ is expected to announce the cases Thursday alongside state partners in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina, which helped uncover the fraud.

Going forward, the seven states have agreed to data-sharing agreements with the division that will give the DOJ access to “publicly available corporate registration and public benefits payment data held by these state agencies,” according to information shared with the Caller. Officials expect the data to help the department identify fraud patterns across businesses. (RELATED: EXCLUSIVE: Trump Admin Intercepts $60 Million In Student Loan Fraud)

“Defeating the fraud epidemic in our country requires all-hands-on-deck from our federal and state partners nationwide,” Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division told the Caller in a statement.

“Whether it’s sharing intelligence, data, personnel, or priorities, partnering with state agencies directly strengthens our ability to identify those stealing taxpayer dollars. When federal prosecutors work alongside state agencies to root out fraud, fraudsters lose and the American people win,” he continued.

The cases across the state include a fraud scheme that cost $11.5 million, the Caller learned. Mississippi is accusing Lakeith Faulkner, an attorney and an employee of the Small Business Administration (SBA), of devising a kickback scheme with co-conspirators, including a former IRS employee, to generate millions in fraudulent loan payments by the SBA, according to information shared with the Caller.

In a North Carolina case announced Thursday, eight individuals were allegedly conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, causing nearly $25 million in losses, the Caller learned.

A Louisiana case uncovered two individuals who allegedly made $174 million in fraudulent claims to Medicare for medically unnecessary cancer genetic testing and cardiovascular genetic testing, the information provided to the Caller shows.

In Florida, a former manager of the Tallahassee Housing Authority used tenets Personally Identifiable Information to fraudulently obtain half a million dollars in U.S. Department of Housing and Urban Development rent subsidies, the Caller learned.

Another major case announced Thursday included an individual who allegedly committed $70 million in tax fraud, according to the information shared with the Caller.

Prior to the announcement, the DOJ convened a roundtable with its southeastern partners to discuss their fraud efforts. The roundtable brought together 18 U.S. Attorneys Offices, seven State Attorneys General Offices, five federal law enforcement partners and over 50 state officials.

Uncovering fraud has become a focus of the Trump administration. In the spring, the White House recently launched an Anti-Fraud Task Force, led by Vice President J.D. Vance. The Department of Justice also added McDonald as an assistant attorney general dedicated to rooting out fraud across the country.

The focus has been largely inspired by YouTuber Nick Shirley, who exposed nearly a dozen Somali-run daycare centers in Minnesota that were not actually providing services.

The administration has continued to try to work with states across the country to help uncover fraud and protect “the taxpayer dollars.”

In May, Vance traveled to Maine for his first ever fraud-related event.

“But here’s the thing, my friends, because you all work hard, because you all pay your taxes, because you do things the right way, it is time to have leadership in Washington that treats you the right way and protects those hard earned tax dollars,” Vance told attendees.