[background sounds]. Good morning everybody. Acute very much for attending the hearing and im sure will have more command throughout the morning. Mr. Craig carbonated was that right. Yes attorney the district of new jersey. Associate deputy journal. The assistant director of criminal investigative division. Fbi. Assistant director of the office of investigations of the lighted states secret service. So we talked about this before. Fraud related to the cares act. Scams out there against seniors selling masks the does work. Playing on young peoples fears. And partially you try to do some good the country, people take advantage of it. And we are going to hear from her folks today but what is going on out there and so it is about how to make sure it stops if we can. In phase four will be coming. Theres a need my view for phase four. I would like to learn as much as we can about the paycheck Protection Program. And supplement unEmployment Benefits. How those programs are sometimes being abused. In generally about what people are doing out there to scam americans particularly are seniors. And that is the purpose of the hearing. Now i will turn it over. I will put my statement in the record so you can proceed. Thank you. Lets start with mr. Hughes. Good morning mr. Chairman. Ranking member and members of the committee. Thank you for inviting me to discuss federal Law Enforcement efforts to deter and prosecute those who violate federal law by exploiting the covid19 epidemic. Before he focused on the dumping of the day on take a moment with the tragic killing of george floyd. As i previously said, video images of the Police Misconduct are incredibly disturbing. The department is conducting a parallel and independent investigation into this incident and collaboration with the fbi to determine whether federal civil rights were violated. We intend to conduct that investigation as swiftly as possible. We know that George Floyd Death was not the first of its kind. And concerns reach far beyond the specific incidents. The outrage of his death is real legitimate and deeply rooted why the vast majority of Police Officers do the job honorably and in accordance with the law, we have seen incidents like this one. America takes great pride in the role of law be a bedrock visible as a nations leading federal Law Enforcement agency, the department of justice is committed to doing it as part for justice for mr. Floyd in his loved ones. And confidence in Law Enforcement for americans. None of these issues are important to you and they are important to us. We need to have discussions on the subject in the days ahead pretty but are subject today is the pandemic and the related economic disruption in this bill exploit those tremendously challenging times. Not withstanding the operational challenges in the print entered pandemic, its critical that the department is vigilant, testing and investigating and ongoing as related to the crisis praise become a priority for us. Weve been receiving reports from individuals reporting those who are exploiting americans and Government Programs designed to assist americans that have been hard hit. The return the publics concern about the foster sheet utilize. [inaudible]. And from there personally identifiably information. Other fraudsters have gotten into the personal protective equipment tried looking to defraud and price gouge of providers, First Responders, and other essential workers who have no choice but to make astronomical prices for protective equipment that their Health Depends on. Processing themes that are providing financial help as to whether they disrupt the economy. In particular, fraudsters are targeting the Payroll Protection Program, the Economic Impact payment from our infant program and statement Employment Benefits program. The pandemic is also changed the cyber threat landscape. Our predators on the internet see widespread closing schools, stayathome orders, and relies on internet platforms that the primary means of communication as an opportunity to pray on children. Cyber criminals also see widespread work from home of them in the american businesses as an opportunity to attack and infiltrate citizens Computer Networks to disable systems, or steal or hold hostage valuable data. Im sure you will agree, it is reprehensible that anybody would use this crisis as an opportunity to profit another persons expense or otherwise fraud. The department of justice will not tolerate in our results demonstrated by our effort to coordinate the offices and components, collaborated with other agencies. We are already bringing cases of fraud in two disrupt their schemes. We will be doing so in the foreseeable future. I think you again for the invitation i look forward to questions. [inaudible]. Good morning. I am craig and the United States attorney for the district of jersey. I was appointed by the attorney general. We are grateful for the privilege of appearing before you today to discuss the departments efforts. Those for their financial gain seek to exploit the covid19 act pandemic. The attorney general and the deputed attorney general relating those efforts in order to help those in that attack. We want to thank the committee for his attention to these issues into the good work to the department of justice to protect in the security of our nation. During this unprecedented crisis. Hoover answered questions about price gouging however, i would like to take a moment to acknowledge the tragic death of george floyd. At the hands of the minneapolis police. I am proud of the people of new jersey who raised their voices in peaceful protests. Seeking justice and reform the name of mr. Floyd. In the other victims like here and appreciate their call for change in new jersey, live witness productive and Law Enforcement partnerships in places like new york. These partnerships have learned crime, and restorative trust. Only in new jerseys are part of these efforts we recognize that we must and will do more. Then he turned to the reason im here today. Missing a broad range of misconduct through the past two months. But our core philosophy is not Pretty Department will investigate and prosecute those who treat or seek to treat covid19. As an opportunity to defraud the public and government. The department has received many reports of individuals and businesses using the crisis to seek when phil process at the expense of Public Safety in the health and welfare of american people. These reports range from the sale of covid19 online. A 40 price gouging critical medical supplies to defining the cares act and economic program. The department is aggressively investigating those reports, already commenced prosecution. In the departments attorney work sidebyside with apartness at the in the nicest secret service as well as other federal state and local Agency Partners make no mistake, the fight against covid19, is a fight to save precious lives everyday. Our medical professionals and First Responders with their own lives at risk to stand between the virus and each of us. The personal protective equipment that they were is the only shield they have of protecting themselves that they bravely go facetoface with the virus. Ellipsis sure heroes do not follow victims to disease print and also has a chart did not bring it home to their families. In the broader communities. Price gouging in particular have frontline healthcare officials and the public from requiring this poisoning to protect themselves from contracting the virus. [inaudible]. Retail consumers have been taught deputed by individuals of critical medical materials of a getrichquick. It is disrupted our chain, the markets, and the safety of our communities. In response, the attorney general and Deputy AttorneyGeneral Assembly a task force to combat and prevent hoarding and price gouging. This comprised of over 100 federal prosecutors that are experienced, 93 u. S. Attorneys offices and department in the washington. The Task Force Part primary mission is to identify and investigate and prosecute the legal hoarding and press gouging. Such as facemasks and essential to spreading of the virus print they do so in the Current Public Health rises. The decision to bring charges are intended to have the publics response. The task force is focusing on profiteering. Some cell scarce materials for prices far exceeding their normal cost pretty and counterfeit and effective medical supplies brought in fr from, they are entering our stream of commerce and creating safety habit hazards. And we are using all of our tools toy defy these products. [inaudible]. The departments efforts are ongoing. But theyve already yielded substantial results. Just as we, the task force commenced the departments first criminal prosecution since the bar manufacturer presenting defective misbranded mass into the United States during the pandemic. Instead of protecting our medical professionals of these materials when i silently them in harms way. Weve also seen these materials and work with Agency Departments to distribute them. Thus in the frontlines fight the covid19. Thank you again for inviting us to address these important topics and we look forward to answering your questions. Good morning. My name is calvin and i am the assistant director of the fbis criminal investigative division. Thank you for the opportunity to prepare before you today. Head of the fbi criminal investigation, oversee the fbis financial crimes and fraud against the Government Programs. My role as a director of the date criminal division, also oversee civil rights, and hate crime investigations. I believe it is important that i pick a moment to address the recent event this member nations attention. Before i focus on the issues surrounding on todays hearing. I along with my colleagues at the fbi, of our sincerest condolences to the family and friends of george floyd. If you civil rights programs is long and proud history protecting the rights of the american people. The primary federal Agency Responsible civil rights investigations, heres the fbi are committed to utilizing a full investigative intelligence capabilities to address violations of federal civil rights law. An pursuit of justice, we have conducting a thorough investigation into the actions that led to George Floyds death. Fbi recognized rights of the citizens to exercise their First Amendment rights and we will continue to protect our citizens and their ability to exercise those rights and violets. Now i will get to the topic at hand. These are unprecedented times for most of americans. And covid19, people are understandably worried about their health and livelihood. Although we are coming together in various meetings and throughout the country, unfortunately there are individuals who to exploit our fears. And they are trying to sell fake covid19 chairs vaccines. And also Companies Reportedly working on vaccines. These are some of the earliest covid19s fraud schemes that the fbi identified. The attorney general issued a memorandum on march 16th of this year directing the attorney to prioritize covid19 related fraud investigations. In the fbi was ready. Within days, all 56 till offices began working a wide range of investigations related to covid19 fraud schemes. As we begin our investigations, we saw a number of different criminal schemes. We saw subjects courting personal protective equipment ppe, and attempting to sell it an exorbitant isis. We also saw people selling counterfeit ppe. The fbi works closely with the department of justice and a nut other Law Enforcement partners to conduct investigations. The cares act was designed to provide economic assistance to families, American Workers and Small Businesses. However, individual still seek to steal money from the people it was designed help. We began to see fraud towards their efforts exporting the various programs to relieve the economic effects of covid19. To effectively target the threats, the fbi informed a Payroll Protection Program by working group and coordination with the department of justice. A small distance the administration of inspector general. Through this effort, 116 investigations have been initiated in over 126 civilians, has been identified. Were also beginning to seek healthcare fraud. Missing a joint billing for services not received. In charges for unnecessary procedures in france related. In addition to fraud schemes, resting crimes targeting our children. School closures have been increasing the presence of children online. In addition, social distancing, restrictions and isolation of children at home, therefore criminal actors with an opportunity to exploit vulnerable children. We are proactively encountering the threat with an active investigation for a also working to educate the public regarding the warning signs, dangers of online sexual exploitation. Although these threats are numerous and evolving rapidly, the fbi has and will continue to meet to be vigilant in directing in these Crimes Involving individuals who commit these crimes, accountable. We rely heavily on Public Education and awareness. In the general public as anywhere, fraudulent schemes and activities, the better situated to report that bridge for that reason, im incredibly appreciative of the opportunity to speak with you today. I think a chairman and Ranking Member for bringing the attention to these issues. I am happy to answer any questions you might have. Thank you. Thank you. Before i begin, but my colleagues talk about to express the frustration the tragic events of the recent weeks. Having served in government only 29 years, nothing troubles me more than Police Misconduct. We need a Central Trust for the Law Enforcement to protect and serve our communities. All enforcement must be held to the highest standards. Racism and discrimination in any form, is unacceptable. The secret service is committed in a deep, ensuring that all americans are afforded the constitutional rights. Equal treatment under the law and the freedom of speech is. Those rights are unavailable. Returning to the subject of this hearing. Thank you all for inviting me to speak about the covid19 related crime and the work of the nine season to serve the accountability. As early as february of this year, the secret service identified individuals and groups seeking to export the pandemic quickly took action to build the capacity and strategies necessary to combat training we anticipated would be some criminal activity. [inaudible]. From the terrorist attacks of 911 and the hurricane activity, criminals throughout the history have used public emergencies as opportunities to defraud the public. However, the covid19 pandemic scopes a level we have not seen before. Citizens, stressed businesses, its government stimulus programs. Since we released our first on march 4th, we observed a significant criminals teams. Inaudible. We seen a surge of crimes targeting various Economic Relief programs such as those provided by the cares act pretty this fraud has been a core focus on the investigative work and expect our efforts will continue for years. The secret service in addition to the commission is responsible for the initiation of a real violations of u. S. Law, pertaining to the u. S. Financial system. This is the director of the office of investigations and field offices of secret service, includes financial crimes tax forces which connect cyber and financial crimes invitations for immediate investigative focus, the secret service is to distract in short criminal activity. To hinder response to the pandemic. By assisting organizations at risk of fraud. About working to recover any things stolen from americans. We will ensure longterm, that those affected are arrested and successfully prosecuted. Those who have committed fraud. We have been initiated over 100 criminal investigations. And prevented proximally 1 billion in fraud loss. Among other Law Enforcement actions, the secret service hasnt successfully disrupted related scams. Anna listed sales of covid19 fraud online. We will also release regular threats intelligence crystals and orders. To defend themselves in the latest criminal threats. However, pronouncing these results by ourselves. Much of our success, are with the partnership so have built in the range of government partners pretty particular we work closely with the various agencies one department of treasury, cybersecurity and the structure Security Agency ands Homeland Security as well as various offices of that partner and smog and of course my calling to the right, the department of justice, there covid19 task force in the federal bureau of education and all of these essential partners. Im committed to ensuring that we are doing our part. On behalf of the american people, activities pointing this pandemic. I look forward to answering your questions and we can Work Together to address this threats. [inaudible]. Thank you. All start with the secret service pretty can you give me some examples of how people are taking advantage of this Protection Program. We primarily right now focus commit