Senator Joni Ernst introduces bill to curb federal fraud by family members

Senator Joni Ernst has introduced the ‘No Cash for Cohabitating Kins of Crooks Act’ following a Senate report identifying approximately $50 million in federal fraud linked to ‘fraudster families.’ The legislation aims to bar individuals living with convicted criminals or fraudsters from receiving federal grants, loans, subawards, or reimbursements.

The bill includes specific exceptions for survivors of domestic abuse and spouses who live separately from the convicted individual. The push for legislation follows investigations into various schemes, including a California-based family that defrauded $18 million in COVID-19 relief funds to purchase luxury items and homes.

Another highlighted case involved four women who allegedly defrauded the U.S. Department of Agriculture of $11.5 million through false claims regarding farming discrimination. The Senate report suggests that much of this taxpayer loss could have been prevented if federal aid were restricted for those cohabitating with known fraudsters.