Watchdog has received over 1 million disaster loan fraud requests, House committee says

Video above: Florida man arrested after allegedly defrauding an estimated $ 4 million PPP The Small Business Administration watchdog has received over a million referrals for alleged fraud on loans from the share of small business relief programs, including identity theft referrals, according to an analysis released Thursday by the House Select Committee examining the federal response to the coronavirus crisis. The SBA sent its inspector’s office General 1.34 million referrals for potential fraud in loans and advances borrowed from the Economic Disaster Lending Program, wrote majority staff of the House Special Subcommittee on the Coronavirus Crisis. The latest analysis shows the extent of potential small business loan fraud under the Trump administration. The House select committee says the Trump administration’s “mismanagement” of small business relief programs has led to nearly $ 84 billion in potentially fraudulent loans. According to the committee, the most recent analysis of the SBA OIG revealed that $ 79 billion had been distributed in potentially fraudulent economic damages loans and advances from the disaster lending program. The vast majority – $ 67.5 billion – went to applicants with duplicate addresses, emails, IP addresses and bank accounts. A committee analysis last year identified more than $ 4 billion. fraudulent loans from the Paycheck Protection Program. recovered $ 626 million – less than 1% – of the nearly $ 84 billion in potentially fraudulent loans in the two small business loan programs, the committee said. to PPP or EIDL programs, “the committee said in its analysis. The committee argued that the Department of Justice may need additional staff to” continue to effectively investigate and prosecute “cases of fraud in the programs. small business support Complaints – a 19,500% increase over previous years – related to the two loan programs OIG receives approximately 700 to 800 hotline complaints in a typical year Over 400 of the total complaints were investigated, while 73,758 were still unresolved as of March 18. The OIG, as of March 18, was also dealing with more than 200. The release of the memo precedes the hearing from the House subgroup Thursday with SBA Inspector General Mike Ware, Pandemic Accountability Committee Chairman Michael Horowitz and Director of the Government Accountability Office for Financial Markets and Investments community, William Shear. The Special House Subcommittee on the Coronavirus Crisis was formed last year to have broad oversight and investigative authority to probe the federal response to the COVID-19 pandemic.

Video above: Florida man arrested after allegedly defrauding PPP for around $ 4 million

Small Business Administration watchdog received over 1 million referrals for suspected fraud loans from small business assistance programs, including referrals for identity theft, according to an analysis released Thursday by the House select committee examining the federal response to the coronavirus crisis.

The SBA has sent its Office of Inspector General 1.34 million referrals for potential fraud in loans and advances borrowed from the Economic Injury Disaster Lending Program, wrote the majority staff of the Special Subcommittee of the House on the coronavirus crisis in a note.

The latest analysis shows the extent of potential small business loan fraud under the Trump administration. The House select committee says the Trump administration’s “mismanagement” of small business relief programs has led to nearly $ 84 billion in potentially fraudulent loans.

According to the committee, the most recent SBA OIG analysis found that $ 79 billion had been distributed in potentially fraudulent loans and advances under the Disaster Economic Damage Loans and Advances program. The vast majority – $ 67.5 billion – went to applicants with duplicate addresses, emails, IP addresses and bank accounts.

A committee analysis last year identified more than $ 4 billion in fraudulent Paycheck Protection Program loans.

So far, the Justice Department has clawed back $ 626 million – less than 1% – of the nearly $ 84 billion in potentially fraudulent loans in the two small business loan programs, the committee said.

On Tuesday, the justice ministry “indicted 173 criminal cases involving 242 defendants for violations related to PPP or EIDL programs,” the committee said in its analysis.

The committee argued that the Justice Department may need additional staff to “continue to effectively investigate and prosecute” cases of fraud in small business relief programs.

The SBA’s OIG also received 148,525 hotline complaints – a 19,500% increase from previous years – related to the two loan programs. The OIG receives approximately 700 to 800 hotline complaints in a typical year.

More than 400 of the total complaints have led to investigations, while 73,758 remain unresolved as of March 18. The OIG, as of March 18, was also handling more than 200 open investigations related to PPP or EIDL.

The memo’s release precedes the House subgroup hearing on Thursday with SBA Inspector General Mike Ware, Pandemic Responsibility Committee Chairman Michael Horowitz and Director of the Government Accountability Office of Financial Markets and Community Investments, William Shear.

The special House subcommittee on the coronavirus crisis was formed last year have broad oversight and investigative power to probe the federal response to the COVID-19 pandemic.

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