The Importance of Oversight of the CARES Act

"Our experience shows us that these types of massive spending programs are invariably victimized by fraud. Indeed, the federal Department of Justice already expects that significant dollars will be diverted from the CARES Act spending by fraudsters."

May 06, 2020 at 09:45 AM

5 minute read

Lesley Brovner

Mark Peters

magnifying glass documents discovery The coronavirus crisis has caused depression era damage to the economy. In response, Congress has already authorized the expenditure of $2 trillion via the CARES Act and is poised to spend considerably more. And rightly so.

This expenditure, though, must come with significant oversight. We served as New York City's Inspector General during another massive government spending program in the wake of a disaster—rebuilding after Hurricane Sandy. Additionally, we have spent over a decade prosecuting fraud in other government spending programs including 9/11 recovery, the WIC program and Social Security.

Our experience shows us that these types of massive spending programs are invariably victimized by fraud. Indeed, the federal Department of Justice already expects that significant dollars will be diverted from the CARES Act spending by fraudsters.