DOJ Launches Whistleblower Program for Pandemic Fraud
The Justice Department is offering cash rewards for tips leading to indictments in pandemic relief fraud, as the SBA suspends 870,000 borrowers from future federal aid.
Updated on Nov. 7, 2026 in Financial Crime
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The Department of Justice has launched a Fraud Whistleblower Incentive Program offering rewards of between $10,000 and $30,000 for reliable tips that lead to indictment, with additional payments after conviction and sentencing. The move comes as the Small Business Administration has identified $122 billion in possible pandemic relief fraud and suspended 870,000 borrowers from receiving future federal assistance.
Why it matters
The program targets fraud in Paycheck Protection Program and COVID-19 Economic Injury Disaster loans, which the SBA oversaw. Individuals, businesses, and lenders can report suspected fraud through america.gov/fraud.
The SBA has referred $100 million in questionable PPP and COVID EIDL loans to the Internal Revenue Service for investigation and asked the Treasury Department to pursue collection of an additional $22 billion. Investigations into the broader $122 billion in possible fraud remain ongoing.
The players
Small Business Administration
The federal agency that oversaw the Paycheck Protection Program and COVID-19 Economic Injury Disaster loans, and which has identified $122 billion in possible pandemic relief fraud.
Department of Justice
The federal department that launched the Fraud Whistleblower Incentive Program offering rewards for tips leading to indictment in pandemic relief fraud cases.
The details
The whistleblower program pays rewards only for tips that lead to indictment and conviction. Separately, Long Island has seen at least 36 arrests in recent years, and a Freeport taxpayer, Damaris Beltre, was sentenced to 4 years in prison after pleading guilty to a scheme to steal $11.6 million.
Timeline
More than $100 million was fleeced from pandemic business-relief programs between 2020 and 2023.
In September 2025, the SBA announced the suspension of 870,000 borrowers.
Beltre was sentenced last month, in October 2026.
Legal Context
The enforcement push targets fraud in the Paycheck Protection Program and COVID-19 Economic Injury Disaster loans, which together drew scrutiny after an inspector general estimated fraud at $200 billion. The new whistleblower incentives extend that effort by paying informants only after indictment and conviction.
Individuals, businesses, and lenders who suspect fraud in federal relief programs can report it through america.gov/fraud. Borrowers suspended from future federal assistance will be unable to receive new aid while the suspensions remain in place.
The takeaway
Anyone with information about pandemic relief fraud can contribute to enforcement and may be eligible for a reward if the tip leads to indictment. Those who receive federal business aid should keep records of their eligibility and loan use.
Further reading
Explore more in Financial Crime coverage on Wisevoter.
More information
You can report SBA program fraud online.
Source note: This article includes information reported by Newsday.
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