Tag: Paycheck Protection Program

Three People in Michigan Charged in $6 Million Pandemic Fraud Scheme

The Center Square

Eight people were charged for alleged roles in a $6 million fraud scheme targeting multiple pandemic relief programs, announced United States Attorney Dawn N. Ison.

Since COVID began, foreign and domestic criminals have targeted government assistance programs often using stolen identities bought from the dark web. The indictment says the defendants caused fraudulent unemployment insurance claims, fraudulent Paycheck Protection Program loan applications, and fraudulent Economic Injury Disaster Loan applications to be submitted for multiple individuals and business entities.

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Pennsylvania Community Bankers Worried About New Regulation’s Impact on Small Business

Bradley Vasoli

A new data-reporting rule issued by the Consumer Financial Protection Bureau (CFPB) has Pennsylvania’s community bankers worried about its implications for them and the businesses they serve. 

The regulation requires lenders making at least 100 small business loans annually to gather data regarding the entities’ applications, including credit prices, geographic figures, lending determinations and demographic information. The banks must then publish the data they collect. Entities meeting the definition of “small business” are those with gross revenues under $5 million in their last fiscal year. 

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Commentary: A Modicum of Justice in Michigan for a COVID-Exploiting Teachers’ Union

RealClearWire
Group of young students at table, reading and wearing masks

America’s teachers’ unions exploited the COVID-19 pandemic to maximum effect, leveraging school lockdowns for which they lobbied to pursue political demands stretching far beyond their salaries and benefits – and helping drive a $190 billion windfall in taxpayer dollars to K-12 schools.

The public bore that cost, in children’s learning loss and mental health struggles; in the burdens the closures placed on parents already struggling to make ends meet in an economy crippled by government decree; and on the literal costs that the teachers’ unions passed on to taxpayers.

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Michigan’s Largest Teachers Union Must Reimburse Taxpayers for Wrongfully Taking COVID Relief Aid

The Center Square

Michigan’s largest teachers union and its health insurance affiliate must repay the U.S. government more than $200,000 after taking $12.5 million in federal loans for which they were ineligible.

Lawmakers intended Paycheck Protection Program loans to help small businesses afford to pay their employees during the initial COVID-19 shutdowns.

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DOJ: Atlanta Man Recruited 10 Others for $3 Million Paycheck Protection Program Loan Scheme

Eric Burk

Eleven men have been sentenced after a scheme to obtain $3 million in Paycheck Protection Program loans; Atlanta man Rodericque Thompson recruited nine business owners to obtain $300,000 loans with fraudulent applications according to the U.S. Attorney’s Office for the Northern District of Georgia.

“The CARES Act and the PPP designated funds to aid struggling businesses during a pandemic,” said U.S. Attorney Ryan Buchanan said in a press release. “American businesses needed these funds to keep their companies and employees afloat during a national emergency and world-wide pandemic. These defendants took advantage of that program to obtain money to which they were not lawfully entitled. We will continue investigating and prosecuting those who attempt to steal these critical funds.”

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Report Claims Unions Skirted Rules to Receive Paycheck Protection Program Loans

The Center Square

The Small Business Administration-administered Paycheck Protection Program paid out millions of dollars to ineligible unions, according to a new report released by the Freedom Foundation.

The Freedom Foundation investigated the SBA’s database of PPP loans, and concluded approximately 226 loans totaling $36.7 million were distributed to labor unions and affiliated organizations. The first round of PPP loans explicitly states such entities were ineligible for the government funds prior to March 11, 2021.

“The Small Business Administration knew as early as July 2020 that Paycheck Protection Program loans were being approved for unions that weren’t eligible to receive the funds,” Maxford Nelsen, Freedom Fund director of Labor Policy, told The Center Square.

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Five Atlanta Residents Charged with Fraud in Alleged COVID-19 Paycheck Protection Program Scheme

Chris Butler

Federal officials in Atlanta have charged 22 people nationwide, including Georgia, with wire fraud conspiracy and other charges in an alleged scheme to obtain nearly $4 million in COVID-19 Paycheck Protection Program (PPP) loans. This, according to a press release that the U.S. Attorney’s Office for the Northern District of Georgia published this week.

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Smyrna, Tennessee Man Allegedly Used Paycheck Protection Program Fraud Gains to Buy a Maserati Sports Car, Semi-Trailer Truck, and More

Morgan Nicole Veysey
several $100 bills

The Department of Justice announced this week a man from Smyrna, Tennessee was charged for Paycheck Protection Program (PPP) fraud. Shawn Palmer, who is the sole owner of Palmers Transportation, Inc. was charged with a criminal information which alleges he applied for and received a PPP loan of $514,370.

According to the charging document, in June of 2020 Palmer sent documents to an individual who assisted him to apply for a PPP loan. The documents were then sent to Kabbage, Inc. which was “a lender approved by the Small Business Administration to provide funds under the program which was designed to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 pandemic.”

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Commentary: $800 Billion Stimulus Program Failed Terribly and Mostly Benefited the Wealthy, MIT Economist Finds

Admin
Close up of federal check

The federal government has spent an astounding $42,000 per federal taxpayer on so-called “stimulus” efforts since the pandemic began. Where did all that money go? Well, as it turns out, one of the biggest stimulus programs, the Paycheck Protection Program, failed miserably.

At least, that’s the finding of a new study from MIT economist David Autor and nine coauthors. They examined the $800 billion Paycheck Protection Program, which gave “loans,” most of which won’t have to be paid back, to businesses. It was created by Republicans and Democrats in Congress alike in hopes of helping businesses preserve their employees’ jobs for the duration of the COVID-19 crisis. 

The study tracks the money to see where it ended up and what it achieved. The results… aren’t pretty. 

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Knoxville Man Sentenced to Prison for Defrauding COVID-19 Economic Relief Programs

Morgan Nicole Veysey

The Department of Justice announced this week a Knoxville, Tennessee man was arrested for defrauding COVID-19 economic relief programs. James Waylon Howell pled guilty to “engaging in more than $150,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and to committing money laundering.” He was sentenced to 18 months in prison.

“This prosecution highlights the Department of Justice’s commitment to aggressively prosecute those who have defrauded these important programs enacted to provide economic relief to those who have suffered financially as a result of the COVID-19 pandemic,” said United States Attorney Francis M. Hamilton III.  “Fortunately, the quick and capable work of our federal partners permitted the recovery of a substantial amount of stolen funds.”

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Small Business Administration Not Taking Direct Action Against Partner Lenders That Issued Billions in Fraudulent Paycheck Protection Program Loans

Admin

The Small Business Administration is not taking action against its partner lenders that issued billions of dollars in fraudulent Paycheck Protection Program forgivable loans, Just the News has learned.

Congress appropriated almost $1 trillion in forgivable PPP loans to assist businesses during the COVID-19 pandemic. Approximately 15% of the $961 billion is projected to have been obtained fraudulently, according to a study.

A House of Representatives panel estimated that $84 billion in PPP funds was issued fraudulently.

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Two Florida Men Plead Guilty to $35 Million COVID Relief Scam

The Center Square

Two South Florida men have pleaded guilty to a scheme to defraud the federal government of $35 million worth of Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) and funded by federal coronavirus relief money.

James R. Stote, 55, of Hollywood and Phillip J. Augustin, 52, of Coral Springs pleaded guilty this week in the Northern District of Ohio for leading a scheme that stretched from Florida to Ohio, the U.S. Department of Justice (DOJ) announced. The two pleaded guilty to conspiracy to commit wire fraud, and each faces up to 20 years in prison.

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Fraudsters Used Paycheck Protection Program Loans for Bentleys, Diamonds, Luxury Homes: Watchdog

Admin
woman on laptop with eye glasses and mug next to her

This week’s Golden Horseshoe goes to the Small Business Administration for millions in Paycheck Protection Program loans it issued to fraudsters who used the money to purchase luxury homes, high-priced jewelry and expensive cars, including a Bentley and two Lamborghinis, according to a watchdog report.

The Paycheck Protection Program had the highest percentage of cases of criminal activity of all the pandemic relief programs, according to the Pandemic Response Accountability Committee’s recent Semiannual Report to Congress.

“A total of 14 OIGs have indictments/complaints, arrests, and/or convictions from April 1, 2021, through September 30, 2021, related to the federal government’s COVID-19 pandemic response,” PRAC reported.

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Nearly 300 Venues in Michigan Awarded $280M in Grants

The Center Square

When the COVID-19 pandemic struck Michigan, Gov. Gretchen Whitmer shuttered much economic activity in Michigan without compensation for lost revenue. While groceries stores stayed open, venues designed for packing people into spaces like theaters, museums, and zoos to enjoy art shuttered for longer than five months.

So the U.S. Small Business Administration administered over $16 billion nationwide through the Shuttered Venue Operators Grantees (SVOG) nationwide. In Michigan, 279 businesses ranging from museums to art centers to theaters have been promised a total of $280 million, with amounts from $3,500 to up to $10 million.

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Arizona’s U.S. Senator Mark Kelly Proposes Legislation to Fund Local Mainstream Media

Rachel Alexander

Sen. Mark Kelly (D-AZ) joined U.S. Sens. Maria Cantwell (D-WA) and Ron Wyden (D-OR) to co-sponsor legislation that indirectly funds local media. The Local Journalism Sustainability Act establishes tax credits that give consumers a huge deduction on media subscriptions, subsidizes journalists’ salaries, and funds news outlets by paying for businesses to advertise.

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Hundreds of Millions in Paycheck Protection Program Loans Went to CCP-Backed Firms, as U.S. Small Businesses Went Under

Admin
U.S Small Business Administration

The Golden Horseshoe is a weekly designation from Just the News intended to highlight egregious examples of wasteful taxpayer spending by the government. The award is named for the horseshoe-shaped toilet seats for military airplanes that cost the Pentagon a whopping $640 each back in the 1980s.

This week, our award is going to the United States Small Business Administration and Treasury Department for awarding at least $200 million, but as much as $420 million, to Chinese Communist Party-linked businesses by way of the Paycheck Protection Program, intended to assist U.S. small businesses that were devastated by the coronavirus pandemic, widely believed to have originated in China.

A report from the Horizon Advisory strategic consulting group illustrates how negligible congressional oversight allowed at least 125 Chinese firms to “take advantage of the international disaster” by benefitting “directly from U.S. investment and relief measures.”

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Commentary: Did PPP Work?

Admin

As the Small Business Administration official who oversaw the Paycheck Protection Program, I’m often asked, “Did PPP actually work?”  

PPP was a response to state and local governments mandating shutdowns as a way to slow the spread of COVID-19. The premise was this: Encourage lenders to provide small businesses and nonprofits with forgivable, SBA-guaranteed loans over an eight-week period as a payroll-support measure. This small business financial support was designed to help prevent mass unemployment as Americans were confined to their homes.  

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Former Conyers Mayoral Candidate Allegedly Stole Massive Funds from the Paycheck Protection Program

Chris Butler

A former mayoral candidate for the city of Conyers allegedly concocted a scheme to use a company she started to steal more than $323,000 from the federal Paycheck Protection Program. Officials with the U.S. Attorney’s Office for the Northern District of Georgia arraigned the woman, Olivia Ware, 61, on federal charges of bank fraud and money laundering.

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Virginia Delegate McNamara Pre-Files Legislation Exempting Forgiven PPP Loans from State Taxes

Eric Burk

Delegate Joe McNamara (R-Roanoke) has pre-filed HB 1787, legislation for the 2021 General Assembly session that will exempt business owners from state taxes on forgivable Paycheck Protection Program (PPP) loans. PPP loans are part of broad COVID-19 relief funding meant to help small businesses keep paying their employees.

When the PPP was passed by Congress in March 2020, the forgivable loans were exempt from federal taxes, but Virginia’s tax structure means the forgiven PPP loans are not automatically exempt from state taxes. McNamara said that could lead to confusion for business owners.

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Republicans Will Put PPP Funding Back on the Floor for a Vote Despite Democrats’ Efforts to Block It, Sen. Blackburn Says

Jason M. Reynolds

U.S. Sen. Marsha Blackburn (R-TN) told CNBC’s SquawkBox on Wednesday that Republicans will try again to pass their bill that would provide PPP and vaccine funding despite Democrats’ attempts to block the efforts.

CNBC asked Blackburn if she would vote for a deal if the White House and the Treasury Department reached an agreement with House Speaker Nancy Pelosi (D-CA-12).

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Congressional Debate: Candidates Scott Taylor and Incumbent Elaine Luria Spar Over Stimulus Packages and Gun Control

Corinne Murdock

Republican challenger Scott Taylor and incumbent Representative Elaine Luria (D-Virginia Beach) faced off Tuesday night in their first televised debate. The 2nd Congressional District race is currently a toss-up.
Political reporter Joe St. George served as the moderator. Questions featured were presented in three segments: from the moderator first, then viewers, and lastly from Taylor and Luria.

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DeWine’s Baseball Team’s Paycheck Protection Program Loan Nets Millionaire Governor $189K of Forgivable Taxpayer Handout

Jason M. Reynolds

With news that Gov. Mike DeWine’s minor league baseball team cashed in on the Paycheck Protection Program, one may ask how Ohio’s top executive came to own a team in North Carolina or why he needed a taxpayer handout.

DeWine has a 32 percent stake in the Asheville Tourists minor league team, The Ohio Star reported this week.

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Gov. DeWine’s Company, which Owns a Minor Baseball Team in North Carolina, Gets Loan from Federal Virus Aid Program

The Associated Press

A company partly owned by Ohio Gov. Mike DeWine is among those that received loans from a $600 billion-plus coronavirus aid program.

The data released Monday shows DeWine Seeds-Silver Dollar Baseball received a loan under the Small Business Administration’s Paycheck Protection Program for a range of $150,000 to $350,000.

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SBA: 2.2 Million Loans, $175B Issued So Far in 2nd Round of Paycheck Protection Program

Admin

The Small Business Administration and the U.S. Treasury revealed Sunday that the second round of the Paycheck Protection Program has issued 2.2 million loans, totaling $175 billion.

PPP loans are forgivable loans for small businesses to offset some of the losses experienced by the response to the COVID-19 pandemic. The loans are meant to provide a direct incentive for small businesses to keep their workers on the payroll.

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Sen. Sherrod Brown Calls for Investigation into Reports Paycheck Protection Program Prioritized ‘Wealthier Clients’

Admin

U.S. Sen. Sherrod Brown, D-Ohio, joined two other Democrats in calling for an investigation into reports some Paycheck Protection Program (PPP) lenders are prioritizing “larger and wealthier clients.”

In a letter to Small Business Administration (SBA) Inspector General Mike Ware, the senators allege some lenders “have prioritized the applications of their larger and wealthier clients to the detriment of smaller [businesses] adversely impacted by the coronavirus pandemic.”

U.S. Sens. Chuck Schumer, D-New York, and Ben Cardin, D-Maryland, joined Brown, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, in sending the letter.

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Wells Fargo Bows Out of Small Business Bailout Program After Receiving $10 Billion of Loan Applications

Admin

One of the largest banks in the United States announced that it is no longer accepting applications for a federal program aimed at rescuing small businesses affected by the coronavirus pandemic.

Wells Fargo has stopped accepting new applications for the government’s Paycheck Protection Program, an initiative created by the government to assist U.S. businesses that employ fewer than 500 people. The bank’s decision came after it was inundated with billions of dollars in loan requests since Friday.

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