A senior USAID contracting officer stands accused of fraudulently acquiring pandemic relief funds—an indictment that now spotlights the staggering $1 trillion in suspected COVID-era fraud.
At a Glance
- Yusuf Akoll, USAID official, charged with fraudulently obtaining PPP loans
- Allegedly created fake company, Naagode Consulting LLC, to secure funds
- LexisNexis estimates $1 trillion in COVID aid lost to fraud
- Senator Joni Ernst calls for aggressive prosecution and oversight reform
- Case underscores systemic flaws in pandemic relief distribution
USAID Insider Exploits COVID Relief
Yusuf Akoll, a Senior Procurement Contract Specialist at the U.S. Agency for International Development (USAID), has been charged with fraudulently obtaining two Paycheck Protection Program (PPP) loans under false pretenses. Prosecutors allege Akoll fabricated Naagode Consulting LLC and submitted falsified documents to obtain pandemic aid meant for struggling small businesses.
Though he registered the company in November 2020, Akoll claimed in loan paperwork that it had existed since January that year and falsified 2019 income data to bolster his application.
Watch a report: Massive Fraud Exposed – The National Desk
A $1 Trillion Catastrophe
According to LexisNexis Risk Solutions, roughly $1 trillion of U.S. COVID relief funds were stolen or misappropriated during the pandemic, with much of it sent overseas. This revelation positions pandemic aid fraud as the largest public financial theft in American history.
USAID itself has since been folded into the State Department following repeated accusations of mismanagement, further highlighting accountability gaps in how federal aid was administered.
Political Fallout and Legislative Push
Senator Joni Ernst (R-Iowa) has publicly criticized the Biden administration for failing to aggressively pursue fraudsters, especially those who stole under $100,000. Her legislation, co-sponsored with Rep. Roger Williams, would extend the statute of limitations for pandemic aid fraud from five to ten years.
Ernst noted egregious examples—including applicants using photos of Barbie dolls for ID—who still received federal funds. “I will not allow fraudsters to get away with stealing hundreds of billions of dollars from taxpayers,” she said.
Enforcement Gaps and Oversight Breakdown
Despite these staggering numbers, the Justice Department has faced limitations in tracking and prosecuting offenders. Acting Assistant Attorney General Nicole M. Argentieri emphasized: “During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open.”
The disbanding of the Special Inspector General for Pandemic Recovery (SIGPR) has only amplified concern over enforcement effectiveness. Watchdog groups warn that without SIGPR or similar oversight entities, much of the stolen money may never be recovered.
What Comes Next?
With over 2 million applications flagged as “likely fraudulent,” the need for enhanced federal oversight is urgent. Ernst’s bipartisan bill—backed by financial watchdogs and congressional investigators—could serve as a foundation for sustained recovery efforts and long-term deterrence.
The Yusuf Akoll case is just the latest example of how internal federal vulnerabilities enabled fraud during a national crisis. As investigations continue, lawmakers and the public are left asking: How many more stories like this are still buried in the paperwork?
