Stimulus Fraud

Economic Stimulus Fraud/Corruption

The U.S. government recently enacted various economic stimulus programs that are injecting vast amounts of funding into the national economy through localized spending. Unfortunately, valuable programs like these—including the American Recovery and Reinvestment Act, the Troubled Asset Relief Program, and the Neighborhood Stabilization Program—also create opportunities for corruption and fraud.

Similar government fiscal spending responses to emergency situations, like Hurricane Katrina and the war on terrorism, have in the past resulted in numerous public corruption and government fraud investigations. To prevent and deter fraud from this latest spending, the FBI is working with its law enforcement partners to aggressively investigate allegations into the misuse of economic stimulus money.

Examples of potential criminal acts include public officials using their position for personal gain, theft of government funds, extortion, contract bid-rigging, false appraisals, falsifying documents to qualify for funding, and contractor fraud. These criminal acts, especially when they are perpetrated by public officials, strike at the heart of government by eroding public confidence and undermining the strength of our democracy. And the investigation of public corruption is the FBI’s number one criminal investigative priority. It is also a mission for which the FBI is singularly situation:  we have the skills and experience necessary to conduct undercover operations and court-authorized electronic surveillance.

If you are aware of an allegation of corruption or fraud related to economic stimulus spending, please contact your local FBI office.

And read more on our efforts to address economic stimulus fraud/corruption.