Given the unprecedented events of 2020, particularly the surge in PPP loan frauds, have there been any discernible trends in federal investigations? Is there a specific type of case that the federal government is Prioritizing?

The federal government is definitely investigating any type of fraud that's related to the funds that were given out, such as SBA loans, PPP loans, and unemployment benefits given to individuals.

It is definitely on their radar to investigate people who are claiming unemployment when they're really not unemployed. When you compare the federal to state, the mechanisms that deal with criminal cases have really been affected the most.

It's my view that the federal level was not adequately prepared for the pandemic. This has led to significant disruptions, with many judges having to:

• done everything they can to see people out of their courtrooms;
• at the state level, they have to let people in the courts.

In Los Angeles, the court has only been closed for one day since the pandemic started. However, in-person appearances at federal courts have been largely replaced by video or WebEx sessions.

I even had a circumstance in which my client didn't agree to appear by phone or video. He was ready to be sentenced and didn't want to continue with the case anymore.

As a result, the judge continued the case on their own because we wouldn't agree to appear on video or WebEx.

Many federal judges, who are older and have more autonomy and power, are concerned about contracting the virus. As such, they're deciding not to let people into their courtrooms.

Consequently, that has triggered a lot of issues. You are not able to do what you normally would in a federal case because you cannot get access. Yet, at the same time, the prosecutors are still filing cases at the federal level. It's a real mess. I hope they are able to sort it out as we move into 2021.

Would You Advise Clients To Continue Their Cases Until The Federal Courts Reopen?

When it comes to federal criminal cases, at least in the central district, sometimes putting the pedal to the metal and trying to force your case through is a good strategy. Of course, that depends on the evidence against you and the posture of the government in your case.

Cooperating with the courts and prosecutors is usually a good strategy for keeping everybody safe. Letting enough time pass for people to get vaccinated can make it a much safer environment inside the federal courthouses and holding facilities.

As mentioned, you're supposed to meet with the government for various reasons in federal cases, and you are unable to do so right now, especially if you're in custody.

The only way to communicate is through video, but most video feeds are being taken up by court appearances. This makes it really difficult to do anything in a federal case at this point. Therefore, it's probably better that most cases are continued until things get back to normal.

If you do have to appear in federal court for a proceeding that doesn't require a long meeting, it is beneficial to do the appearance over video or WebEx.

It is much more convenient to appear via video or WebEx than to trek all the way to a federal court, so it's helpful in that sense.

However, if you want to effectively deal with the case and get the best result, you'll want to meet with the judge and prosecutor face-to-face.

Is the Government Aggressively Investigating Federal Fraud Cases?

When it comes to federal investigations relating to money that has been handed out and somebody has committed some sort of fraudulent activity, rest assured, they're definitely going to investigate and prosecute it with utmost thoroughness.

That being said, they still need to release the rules regarding fraudulently used funds fully. If there's any discrepancy related to the rules, they're not going to deal with that type of case. They need more time or workforce to do it.

Also, a lot of money has been handed out under various circumstances and in a hurry, which has put them at a disadvantage in dealing with fraud.

However, I do see them investigating and prosecuting cases. The FBI, Secret Service, and Homeland Security are investigating pretty clear-cut fraud cases.

Otherwise, they won't get involved. All of the red tape they have to endure has frustrated many of their investigations.

Have there been prosecutions related to the money that's been given up by the government?  Absolutely. And the government is determined to continue these prosecutions, ensuring that justice is served. It's still probably a ways away, but the process is in motion.

The government isn't yet in a position to take action against people who have used federal funds illegally and fraudulently.

However, they will come back around once they get their bearings. Once the money is being collected, they'll realize who took it illegally, and they will take action. The government is committed to ensuring that those who misuse federal funds are held accountable.