DOJ issued a press release regarding its efforts to combat COVID-19 related fraud schemes, specifically those related to PPP loans. Although some allegations of PPP fraud cited are extreme cases (e.g., misappropriating funds to buy cars, jewelry, etc.), DOJ also mentions instances in which PPP loan recipients inflated their payroll expenses to obtain larger loans. PPP loan recipients should ensure that their documentation and support for disbursed funds are in order in light of the regulatory focus in this area.

Link to DOJ Press Release