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

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Video Above: Florida Man Arrested After Allegedly Fraud A P3 For About $ 4 Million The Small Business Administration Watchdog Has Received Over One Million Referrals For Alleged Fraud In Loan Programs helping small businesses, 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 Disaster Lending Program, the House Subcommittee on the Crisis of Canada wrote. coronavirus. a memo. 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 aid programs has led to nearly $ 84 billion in potentially fraudulent loans. Disaster lending program loans and advances. The vast majority – $ 67.5 billion – went to applicants with duplicate addresses, emails, IP addresses and bank accounts. Recovered $ 626 million – less than 1% – of the nearly $ 84 billion in potentially fraudulent loans in the two small business loan programs, according to the committee. 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 assistance programs. The SBA’s OIG also received 148,525 hotline complaints – a 19,500% increase over previous years – related to the two loan programs. The OIG receives approximately 700 to 800 online telephone complaints in a typical year. More than 400 of the total complaints have resulted in investigations, while 73,758 remain unresolved as of March 18. On March 18, the OIG also deals with more than 200 initiate investigations related to the PPP or EIDL. The memo’s release precedes the House subcommittee hearing Thursday with SBA Inspector General Mike Ware, Pandemic Response Accountability Committee Chairman Michael Horowitz, and Government Accountability Office Director of Markets financial and community investment William Shear. The Special House Subcommittee on the Coronavirus Crisis was formed last year to have broad oversight and investigative power to probe the federal response to the COVID-19 pandemic.

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

The Small Business Administration watchdog received over 1 million referrals for alleged fraud in 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 the inspector general 1.34 million referrals for potential fraud in loans and advances borrowed from the economic disaster lending program, the House subcommittee on the crisis wrote. coronavirus in a memo.

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 aid 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 was distributed in loans and advances from the potentially fraudulent economic 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 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 online telephone complaints in a typical year.

More than 400 of the total complaints have resulted in investigations, while 73,758 remain unresolved as of March 18. The OIG, as of March 18, is also dealing with more than 200 open investigations related to the PPP or EIDL.

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

The Special House Subcommittee on the Coronavirus Crisis has been formed last year to have broad surveillance and investigative power to probe the federal response to the COVID-19 pandemic.


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