Related Content
Press Release
Press Release
BOISE – U.S. Attorney Josh Hurwit announces the formation of the District of Idaho’s COVID‑19 Fraud Task Force and highlights the District of Idaho’s ongoing efforts to combat pandemic‑related fraud. Those efforts have included complementary actions by the Criminal, Civil, and Asset Recovery Divisions, along with federal, state, and local law enforcement agencies.
“The Task Force represents a continuation of my office’s commitment to combatting pandemic‑related fraud,” stated U.S. Attorney Hurwit. “It brings together a broad group of law enforcement agencies with prosecutors who will work jointly to hold accountable criminals who unjustly enriched themselves at the expense of taxpayers by defrauding economic aid programs.”
The U.S. Attorney’s Office is pleased to announce that the following agencies are part of the Task Force:
“Those that commit fraud against SBA’s programs will be brought to justice and held accountable,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Investigating claims of COVID-19 relief fraud remains a top priority for IRS Criminal Investigation,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “IRS-CI has investigated over 800 cases of COVID-19 related fraud and we will continue to hold accountable those that steal funds intended to help American workers, families and small businesses.”
“The Treasury Inspector General for Tax Administration joined the U.S. Attorney's Office for the District of Idaho to identify and investigate fraud, waste, and abuse of COVID-19 related government assistance programs,” said Treasury Inspector General for Tax Administration J. Russell George. “We are committed to working with our law enforcement partners to aggressively investigate those who endeavor to corrupt these programs through the misuse of IRS systems and fraudulent IRS documents in furtherance of their schemes.”
The Task Force will identify, investigate, and prosecute those whose defrauded economic aid programs intended to help individuals and small businesses negatively impacted by the COVID‑19 pandemic. That includes programs such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), Coronavirus Farm Assistance Program (CFAP), Emergency Rental Assistance Program (ERAP), and Unemployment Insurance (UI). To fraudulently obtain these funds, criminals have created businesses, committed identity theft, and inflated the size and scope of actual businesses.
Case Examples
In conjunction with today’s announcement, U.S. Attorney Hurwit also announced that Nicholas Jones, 36, of Boise, was sentenced today to 30 months in federal prison for wire fraud and filing falsified campaign finance disclosures related to his run for the U.S. House of Representatives in 2020. Jones was also ordered to pay a $100,000 fine, and the U.S. Attorney’s Office has already received a separate restitution payment of over $90,000 from Jones.
Jones, a small business owner, applied for and received COVID-19 relief funds, including PPP and EIDL funds, totaling $753,600. Despite certifying that these funds would only be used for business-related expenditures, Jones used a significant portion of the funds for personal expenses, including car payments, life insurance policies, and his mortgage. He also purchased a significant amount of stocks and investments with the relief funds.
In addition, Jones ran as a candidate for U.S. House of Representatives in 2020. He used a portion of COVID-19 relief funds he received for campaign purposes. In addition to paying for political advertising, he used PPP funds to pay his restaurant employees not to work for the restaurant, but to work for his congressional campaign, including by making phone calls and hanging campaign flyers.
In imposing his sentence, Chief United States District Judge David C. Nye said that Jones had to bear the consequences of his conduct, which included misusing “money that was significant and no longer available for its intended purpose.”
Other examples of cases that the COVID-19 Fraud Task Force investigated and that led to charges include:
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline at www.pandemicoversight.gov/contact/about-hotline. Idahoans are also encouraged to report COVID-19 fraud directly to the U.S. Attorney’s Office at (208) 334-1211.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
CASSIE FULGHUM
Public Information Officer
(208) 334-1211