CITIZENS NEWS

Shocking $135 Billion was stolen from taxpayers as criminals exploited COVID Relief Programs

By ljdevon // 2025-03-05

• $135 billion in unemployment benefits stolen during the pandemic, marking the largest theft of taxpayer dollars in U.S. history. • Criminals from China, Russia and other nations exploited lax oversight to launder funds for child trafficking, drugs and terrorism. • Congress faces a March 2025 deadline to extend the statute of limitations for prosecuting fraudsters, or thousands will escape justice. • The same criminal networks now target disaster relief funds for fire and hurricane victims, highlighting systemic failures.

Lock downs and baseless money printing led to disturbing level of criminal money laundering

In what can only be described as a brazen heist of historic proportions, the COVID-19 lockdowns provided a golden opportunity for organized crime syndicates to plunder American taxpayers to the tune of $135 billion. This staggering sum, siphoned from unemployment insurance (UI) programs, represents the largest theft of public funds in U.S. history. As Congressman Rudy Yakym (IN-02) revealed in a recent podcast with John Solomon, the pandemic exposed gaping holes in the nation’s financial safeguards, allowing criminals to exploit relief programs with impunity. Now, with the statute of limitations for prosecuting these crimes set to expire in March 2025, lawmakers are scrambling to hold fraudsters accountable and recover stolen funds. But as the same criminal networks shift their focus to disaster relief programs, the question remains: Will the federal government act decisively to protect taxpayer dollars, or will this unprecedented theft go unpunished? The totalitarian COVID-19 lockdowns and subsequent medical tyranny unleashed a wave of unprecedented government spending, with trillions of dollars funneled into relief programs like the CARES Act. While these funds were intended to help struggling Americans, they also became a magnet for fraud. According to the Department of Justice, an estimated 100to100to135 billion in UI benefits were stolen, with only $5 billion recovered to date. The scale of the theft is staggering. During a recent Ways and Means Work and Welfare Subcommittee hearing, Chairman Darin LaHood (IL-16) highlighted a case in Pennsylvania where a single individual stole $59 million in public benefits, funneling the money to co-conspirators in China. This case is just one of 1,648 open investigations by the Department of Justice, with 157,000 UI fraud complaints still unresolved. “These cases are complex,” LaHood said. “They’re nuanced, involve federal crimes, but they also raise serious national security concerns.” Indeed, the fraud was not limited to domestic criminals. International crime syndicates from China, Russia, Nigeria, and Romania exploited stolen personal information to file fraudulent claims on behalf of legitimate individuals. As unemployment insurance expert Haywood Talcove testified, these groups used the stolen funds for “horrible things,” including child trafficking, drug distribution, and even terrorism.

Same criminals, new targets: Disaster relief fraud in California continues

Five years after the first lockdown relief checks were issued, the same criminal networks continue to exploit federal programs, this time targeting disaster relief funds. In California, where wildfires have devastated communities, fraudsters are stealing disaster unemployment insurance and SNAP benefits intended for fire victims. Similarly, in North Carolina, hurricane victims are being robbed of much-needed aid. “It’s the same groups doing the same thing,” Talcove said. “They use the money for horrible things… I’d like to tell you that things are better today, but just watching what’s going on in California, seeing what happened in North Carolina, same groups, same playbook, stealing at scale.” This ongoing theft underscores the urgent need for federal action to protect taxpayer funds and ensure that relief programs reach their intended recipients. With the statute of limitations for prosecuting pandemic-era fraud set to expire in March 2025, time is running out to hold criminals accountable. If Congress fails to act, thousands of fraudsters will escape justice, and taxpayers will lose any chance of recouping stolen funds. “The Department of Justice has 1,648 open cases,” Congressman Yakym noted. “These are uncharged criminal matters relating to COVID-19 fraud… Do you believe that there’s still more unemployment fraud carried over from the pandemic out there that could result in prosecution or recouping funds if we were to extend the statute of limitations?” Talcove’s response was unequivocal: “Yes, I think there is.” Sources include: Justthenews.com Art19.com WaysandMeans.house.gov

terrorism crime scandal big government money laundering money supply investigation child trafficking statue of limitations disaster relief federal crimes drug distribution criminal organizations pandemic fraud unemployment insurance crimes SNAP fraud lockdown fraud unprecedented spending