November 9th According to U.S. media reports, as of now, the U.S. federal government continues to receive a large number of reports about possible fraud in the Paycheck Protection Program (PPP).
According to the New York Post, Wall Street Journal reported that the US Congress passed a plan to help small businesses in trouble due to the Coronavirus Pandemic. Companies with pay guarantee plans do not seem to be eligible for loans.
It is reported that some companies established after the beginning of Coronavirus, companies with more than 500 employees, and those listed on the federal “non-paying” tax list because of tax debts also received part of about 525 billion US dollars in loans. In addition, based on the number of employees and the level of compensation, many companies receive compensation from the compensation security plan in excess of the amount they are eligible for.
It is reported that between April 3 and August 8, about 5.2 million companies received loans from the U.S. Salary Protection Program. At the peak of the plan, the US Small Business Administration approved more than 500,000 loans in one day. Banks and the government require companies to prove that they are eligible, but they are rarely reviewed.
In September of this year, the U.S. Treasury Department stated that it had received 2,495 suspicious activity reports involving commercial loans from banks and other lending institutions, the most since 2014. The FBI stated that hundreds of investigations have also been initiated, involving nearly 500 suspects and hundreds of millions of dollars in loans.