In a striking case of pandemic-related fraud, a Colorado-based physician, Dr. Francis F. Joseph, 58, has been slapped with a two-and-a-half-year prison sentence. The reason? Fraudulently obtaining and misusing around $250,000 in funds earmarked for COVID-19 relief according to the U.S. Department of Justice.
Operating out of Springs Medical Associates, with three clinics across Colorado, Joseph was ideally positioned to aid in the pandemic’s fallout. However, from March to June 2020, he did quite the opposite. Instead, he applied for and received government relief from the Accelerated and Advance Payment Program and the Paycheck Protection Program—emergency financial assistance systems designed to help medical providers and small businesses impacted by the pandemic.
Misappropriation of Pandemic Funds
Although these funds were designed to provide relief for medical providers and small businesses struggling due to the COVID-19 pandemic, Joseph had different plans. In total, the Colorado physician pocketed approximately $250,000, diverting these funds to cover his personal expenses.
The Announcement and Investigation
The announcement came from a host of officials, including Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Special Agent in Charge Curt Muller of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General (SBA-OIG). The HHS-OIG and SBA-OIG also spearheaded the investigation into this case.
The prosecution of the case was in the competent hands of Trial Attorneys Jennifer Bilinkas and John J. Liolos of the Criminal Division’s Fraud Section.
Ongoing Fraud Prevention Efforts
In response to the growing number of pandemic-related fraud cases, the Criminal Division has been proactive in combating fraud related to COVID-19, especially those linked to the funds provided by Congress via the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Since the CARES Act came into effect, Fraud Section attorneys have prosecuted over 210 defendants in more than 140 criminal cases related to CARES Act programs and funds. In their pursuit of justice, they have managed to seize over $80 million in cash proceeds from CARES Act-related fraud schemes.
The Attorney General established the COVID-19 Fraud Enforcement Task Force in May 2021, a move aimed at strengthening efforts to investigate and prosecute fraudsters while assisting agencies to prevent fraud in the administration of relief programs.
Xylo News 