We hear reports of arrests and arraignments for PPP loan cases involving only $10,000 or $15,000. As the lending programs ramped up last summer, there was a spike in suspicious activity reports from banks and other lenders flagging potential fraud. We expect to go to trial because of the serious nature of this matter.. After the defendants learned that a hold was placed on bank accounts of the Victoria Companies that received PPP loans issued by one financial institution due to suspicion of fraudulent activity, one of the defendants conducted Internet searches for PPP Fraud, PPP Loan Fraud Arrests, and How to get rid of a PPP Loan. The defendants thereafter withdrew the applications for and/or repaid the PPP loans for the Victoria Companies issued by that financial institution. As former federal prosecutor Tarek Helou told the Wall Street Journal, The scandal is whats legal, not whats illegal., Lenders may also be more likely to face civil enforcement than criminal enforcement. With more time, we might have been able to implement some preemptive fraud measures, but we knew there would be some fraud, said Kennedy. A locked padlock Two people were approved for that amount twice, and one of those people got paid twice. According to Grossman, the Small Business Administration watchdog official, all of our ongoing investigations involve individual borrowers rather than lenders. Law enforcement insiders say many more pandemic loan fraud cases will be brought in the months and years ahead. The Small Business Administration has said victims of identity theft will not have to repay the loans fraudulently obtained in their name, but some individuals have told media outlets the agency has not promptly resolved their cases. The CARES Act provided $600 weekly supplemental unemployment benefits for individuals out of work for reasons related to the pandemic. Louisiana Department of Revenue Identity Theft Affidavit, Louisiana Workforce Commission Suspected Fraud Form. So now, he says agencies must go after anyone who might be taking money theyre not entitled to. Normally, the office of inspector general receives between 700 and 800 hotline complaints or tips a year. Applicants fraudulently obtained at least $16 million, per the Justice Department. Unlike the previous round of the PPP, loan guaranty approval is now contingent on passing SBA fraud checks, Treasurys Do Not Pay database, and public records, the fact sheet states. An October inspector general report states that SBA has fired employees and contractors who were involved in approving loans to themselves or who inappropriately influenced loan approval. The Small Business Administration did not respond to questions, but a spokesperson for the agencys inspector general told POGO that we are aware of one employee and two contractors who have been fired for these reasons. An indictment includes text and email messages involving creating tax records for some of the companies. The three Economic Injury Disaster loans Greenberg obtained should have triggered red flags galore. You can search the SBA's entire PPP loan data below. EVERY primarily used Cash App to receive the initial payments. Linda Miller, the deputy executive director of the Pandemic Response Accountability Committee, told Federal News Radio in September, My guess is when were all said and done, [the fraud rate is] going to be significantly higher than 5% in the case of the CARES Act. If it is just 5% of the combined $957 billion in Paycheck Protection Program loans and Economic Injury Disaster loans and advance grants, that would still be about $48 billion in fraud. Click here to report information on Amazon warehouses. Senator Kennedy admits the program may have had some holes in it, due to how quickly it was rolled out, and the loan program has been updated many times to expand eligibility. And these cases are just the beginning. The amounts varied from less than $2,000 to more than $20,000. There are many potential cases the Justice Department may not prosecute. Nearly a dozen of those people took out two loans. But the government could have implemented these safeguards from the beginning, which may have prevented significant levels of apparent fraud in the program. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. According to the Board of Barber Examiners, to legally run a barbershop, an owner must have a business license and a barber license if they are cutting hair even if that business is run out of a home. In addition to allegedly submitting a fraudulent PPP loan application for a fictious [sic] business in his own name, Saintvil also allegedly stole the identities of eight elderly individualsseven of whom were residents of senior living facilities and one who was related to him, according to a Justice Department press release. In 2020, applicants could not lawfully receive more than one Paycheck Protection Program loan. Data analysts at the inspector generals office have been combing through Paycheck Protection Program and Economic Injury Disaster loan data to look for markers of potential fraud, such as repeat loan applicants from the same physical addresses, Grossman told POGO. Search arrest records and find latests mugshots and bookings for Misdemeanors and Felonies. The Small Business Administration has released a list of businesses that have received emergency pandemic loans.. If the borrower can prove they used the money to pay employees and eligible expenses, they can ask the SBA for loan forgiveness. However, both Kennedy and Ricks say the good the program did far outweigh any possible fraud. For much of 2020, the agency also issued grants of up to $10,000 under the program that do not have to be repaid by eligible recipients. One case involved applications for hundreds of allegedly fraudulent Economic Injury Disaster loans and at least a $1.3 million loss to the federal government. If youre going to steal money, finite resources from people who need them, then, by God, were going to prosecute you.. The prosecution of this case is being handled by the Offices Complex Frauds and Cybercrime Unit. Both programs lacked basic anti-fraud safeguards and the Small Business Administration exercised insufficient oversight, according to the agencys watchdog, the Government Accountability Office, and congressional committees that have investigated the programs. You have to understand from the lenders perspective, really, theyre just looking at income. Government and federal taxpayers writ large arent the only victims of fraud in the pandemic lending programs. Whether bad faith was involved is another matter. Both laws have provisions allowing whistleblowers to receive a reward for successful recoveries obtained for the U.S. government. Two of the companies, Symbiont Retailers and Horizon Enterprises, were not in good standing before the Paycheck Protection Program began. Act 12 of the 2020 First Extraordinary Session of the Louisiana Legislature provided for a one-time $250 rebate for eligible workers earning $50,000 per year or less, who spent at least 200 hours responding to or mitigating the COVID-19 crisis from March 22, 2020, through May 14, 2020. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. Government Accountability Office revealed, according to Shear of the Government Accountability Office, the Justice Department unveiled new charges, Greenberg bribed an unnamed Small Business Administration insider, according to the Government Accountability Office, 5.8 million advance grants worth $20 billion, underutilized Program Fraud Civil Remedies Act, Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), first settlement in a Paycheck Protection Program civil enforcement case, remarks before the U.S. Chamber of Commerce, revamped the Paycheck Protection Program loan application, for the Pandemic Response Accountability Committee, Lamborghinis, Strip Clubs, Bogus Companies, and Lies, Spike in Suspected Business Loan Fraud Reports Coincided with Paycheck Protection Program, How a Ukrainian Oligarchs Companies Got Paycheck Protection Program Loans. Using that public data, the 9 News Investigators took a close look at PPP loans given out in Louisiana. EVERY received these funds into her Current account, her Cash App account, or into her boyfriends Current account. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Indeed, on the day lenders began processing applications for Paycheck Protection Program loans last year, Small Business Administration Inspector General Hannibal Mike Ware issued a white paper outlining lessons learned from previous stimulus loan programs. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. Not all those loans were necessarily fraudulently obtained. Investigators determined there were at least 110 PPP sole proprietor loan applications in and around the Thibodeaux, Louisiana area and they all had the same invoices and federal tax forms (Schedule C) with the same business name and amounts. Eastern District of Louisiana (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). Aqeel used some of the proceeds to purchase a Lamborghini sports car, according to the Justice Department. Louisiana PPP loan fraud cases may be initiated by employees of banks who disperse PPP funds in Louisiana, employees of companies who have received CARES Act aid in Louisiana, or any other individual who has inside information on a PPP loan fraud case originating in Louisiana. The loans have to be repaid with low interest. The Department of Justice (DOJ) says as of Aug. 8, more than 5.2 million forgivable loans have been approved, at a total of more than $525 billion. Summary of PPP Loans in Louisiana. This March, the Government Accountability Office revealed that 4 months after SBA started using a system to approve Economic Injury Disaster loans in batches, agency officials realized this system contained alerts that should have been reviewed by loan officers, but had not been. Those who suspect PPP fraud or may have been a victim of such fraud should contact the National Center for Disaster Fraud (NCDF) hotline at 866-720-5721. An Archdale man was arrested after authorities say he falsely received more than $1.5 million in COVID-19 relief money through the Paycheck Protection Program. $350K-$1M loan to BENOIT WELDING, INC. BENOIT WELDING, INC. $150K-$350K loan to THE DELAHOUSSAYE CO., INC. Grossman said his office has shared data with the Department of Health and Human Services Office of Inspector General, which identified some repeat offenders. Published 8:46 am Sunday, September 11, 2022 . GOODWILL INDUSTRIES OF NORTH LOUISIANA, INC. 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