How to Prepare for Government Investigations in the Wake of the CARES Act
The U.S. economy is about to receive an unprecedented infusion of economic aid to assist businesses struggling to survive in the wake of the Covid-19 pandemic. The 2 trillion dollar economic stimulus package known as the Coronavirus Aid, Relief and Economic Security (CARES) Act will make loans and other aid available to businesses across the country.
With all of that cash quickly entering the marketplace, Congress has appropriated over 100 million dollars to fund oversight entities to guard against fraud and abuse. In addition to traditional law enforcement agencies, Congress has provided funding for the creation of the Office of the Special Inspector General for Pandemic Recovery (OSIGPR). The OSIGPR will conduct, supervise and coordinate audits and investigations related to the making, purchasing, management and sale of loans by the U.S. Treasury under the CARES Act.
In addition, Attorney General William Barr has instructed federal prosecutors to prioritize cases involving fraud and abuse associated with funds distributed under the CARES Act.
Businesses planning to take advantage of the relief offered under the CARES Act need to prepare now for the audits and investigations that will inevitably ensue. The early development of compliance plans and the identification of potential vulnerabilities may prevent significant problems in the future. Care must be taken in the preparation of documents submitted to the government in support of loan requests and legal considerations must be incorporated into business decisions.
Our team of governmental compliance and white collar defense attorneys can help your business make sound decisions that minimize the chances of legal problems in the future. If you need legal advice regarding compliance matters, please contact us at (518) 462-5601.