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...