COVID-19 fraudster used stolen relief aid to purchase a private island in Florida

YANKEETOWN, Florida (AP) — A freshwater spring bubbles amid the mangroves, cabbage palms and red cedars on Sweetheart Island, a two-acre uninhabited patch of paradise about a mile off the coast of this little Gulf Coast town.

Pelicans divebomb nearby into the cool waters of Florida’s Withlacoochee Bay and the open view westward holds the promise of dazzling sunsets.

It may have seemed like an ideal getaway for Florida businessman Patrick Parker Walsh. Instead, he’s serving five and half years in federal prison for stealing nearly $8 million in federal COVID-19 relief funds that he used, in part, to buy Sweetheart Island.

While Walsh’s private island ranks among the more unusual purchases by pandemic fraudsters, his crime was not unique. He is one of thousands of thieves who perpetrated the greatest grift in US history. They potentially plundered more than $280 billion in federal COVID-19 aid; another $123 billion was wasted or misspent.

The loss represents close to 10 per cent of the $4.3 trillion the US government has disbursed to mitigate the economic devastation wrought by the COVID-19 pandemic, according to an analysis by The Associated Press.

An AP review of hundreds of pandemic fraud cases presents a picture of thieves and scam artists who spent lavishly on houses, luxury watches and diamond jewellery, Lamborghinis and other expensive cars. The stolen aid also paid for long nights at strip clubs, gambling sprees in Las Vegas and bucket-list vacations.

Their crimes were relatively simple: The government’s goal was to get cash into the hands of struggling people and businesses with minimal hassle, particularly during the early stages of the COVID-19 crisis. Safeguards to weed out the swindlers were dropped. As Walsh’s case and thousands of others have shown, stealing the money was as easy as lying on an application.

The thieves came from all walks of life and all corners of the globe. There was a Tennessee rapper who bragged about the ease of stealing more than $700,000 in pandemic unemployment insurance on YouTube. A former pizzeria owner and host of a cryptocurrency-themed radio show bought an alpaca farm in Vermont with pilfered aid. And an ex-Nigerian government official who grabbed about half a million dollars in COVID-19 relief benefits was wearing a $10,000 watch and $35,000 gold chain when he was arrested.

Nearly 3,200 defendants have been charged with COVID-19 relief fraud, according to the US Justice Department. About $1.4 billion in stolen pandemic aid has been seized.

Investigators won’t catch every crook. The scale and scope of the fraud are too large. Pandemic cases often depend on digital evidence, which is perishable, and the financial trail can go cold over time, said Bob Westbrooks, former executive director of the federal Pandemic Response Accountability Committee.

“The uncomfortable truth is the federal criminal justice system is simply not equipped to fully address the unprecedented volume of pandemic relief fraud cases, large and small, and involving thousands upon thousands of domestic and foreign actors,” Westbrooks said.

Top Justice Department officials are undeterred by the enormity of the task. They’ve created special ” strike forces ” to hunt down COVID-19 aid thieves and vowed not to give up the chase.

“We’ll stay at it for as long as it takes,” US Deputy Attorney General Lisa Monaco said in August.