May 3, 2021
In an article for ACC Docket, Nelson Mullins partner Angela Hart-Edwards and associate Josh Myers, along with co-author Northrop Grumman Senior Counsel Aaron T. Marshall, advise companies and federal contractors to be diligent in recordkeeping related to applications for and use of relief from federal benefits under the U.S. Coronavirus, Aid, Relief, and Economic Security Act (CARES Act). To date, the DOJ has criminally charged 474 defendants in 56 federal district courts, targeting a total of $569 million in COVID-19 fraud. The authors note that, in light of this scrutiny and unprecedented pace of prosecutions related to business’ use of CARES Act relief funding, it’s important to keep numerous key points in mind: PPP loans and Section 3610 obligations and requirements; acquiring and spending PPP loans; acquiring and spending Section 3610 relief; and legal exposure.
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