Watchdog finds 'strong indicators of widespread fraud' in the $60 billion small business bailout
The Small Business Administration's Inspector General said Tuesday the office found likely examples of pervasive fraud in the Paycheck Protection Program, which provided more than $500 billion in mostly forgivable loans to small businesses affected by the coronavirus pandemic.
The watchdog office said its preliminary review found "strong indicators of widespread fraud." Specifically, its investigation into hundreds of hotline complaints found $250 million in loans and grants to "potentially ineligible recipients" and another $45.6 million in potential double payments. In total, the potential wrongdoing totals less than 1% of the program's total $520 billion in loans provided to about 5.03 million businesses since March.
Among those cases include a Florida man accused of spending part of a $3.9 million PPP loan on a $318,000 Lamborghini Huracan supercar.
"Swift management action could reduce or prevent additional losses to the taxpayer, because the associated economic injury loan applications may still be unapproved or undisbursed," the report suggests to the SBA. "Management should engage financial institutions immediately to identify disbursements that may have been obtained fraudulently and recover disbursed funds."
https://www.yahoo.com/news/government-watchdog-finds-strong-indicators-141655781.html
= new reply since forum marked as read
