CARES Act enforcement risks and compliance best practices

Author: Taryn Lewis, Kim Nemirow, Abdus Samad Pardesi, Kirkland & Ellis | Published: 21 Apr 2020

On March 27 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law making available $2.2 trillion in relief funds.  This alert identifies the potential enforcement risks for recipients of CARES Act funds as well as some compliance best practices to follow in the application of and use of these funds. 

Consistent with activity following other large stimulus initiatives or government loans, including the 2009 Troubled Asset Relief Program (TARP), the US government has indicated that it intends to be aggressive in pursuing misconduct or fraud by recipients of CARES Act funds. Entities contemplating applying for and ultimately receiving CARES Act funds, directly or indirectly, should be cognizant of all applicable laws and regulations and should consider taking steps to address potential risks, including assessing the adequacy of—and fortifying where necessary—internal policies, procedures, and controls as well as staying current on guidance issued by government enforcement authorities.
New CARES Act enforcement...