Federal News
Northern District of Illinois Sentences Covid-Relief Fraudster
March 23, 2026
A federal judge in the Northern District of Illinois sentenced Francesco Distefano to six and a half years in prison for defrauding over $3.3 million in COVID-19 relief funds under the CARES Act. This case underscores ongoing federal enforcement efforts involving multiple agencies, including the FBI, IRS Criminal Investigation, and SBA Office of Inspector General, to detect and prosecute fraud related to pandemic relief programs such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and unemployment benefits.
- Procurement professionals should be aware of heightened scrutiny and enforcement around COVID-19 relief fund usage, emphasizing the importance of compliance and accurate reporting.
- Contractors and businesses involved in pandemic-related government programs face increased risk of investigation for fraudulent activities, impacting eligibility for future contracts.
- Agencies and oversight bodies continue to collaborate on fraud detection, indicating sustained federal commitment to safeguarding relief funds.
- Organizations can leverage this information to strengthen internal controls and due diligence processes when participating in government relief or stimulus programs.
As the nation was struggling with the Covid pandemic, the defendant was scheming to defraud the PPP, EIDL, and unemployment programs.
— Jeffrey S. Snell, Assistant U.S. Attorney
Agencies
U.S. Attorney's Office, Northern District of Illinois, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Small Business Administration, Office of Inspector General