Failed Government Oversight Opens the Door For Fraud
Last week, the House Select Subcommittee on the Coronavirus Crisis released an analysis identifying “multiple areas of potential waste and fraud” in the Paycheck Protection Program (PPP). Today, the House and Senate are back in session, but across the country, fraudsters are still taking advantage of the program’s poor oversight and mismanagement, from one Massachusetts man who faked his own death ahead of PPP fraud charges to a Floridian who used 700 synthetic identities.
As PPP fraud cases continue to rise, minority-owned businesses are shutting down at alarming rates and a new analysis finds that rental companies that received PPP aid are fueling the looming eviction crisis.
HOUSE SUBCOMMITTEE REPORT OUTLINES PPP’S FAILURES
“Over $1 billion in emergency coronavirus aid relief went to companies that “double dipped” and received multiple Paycheck Protection Program loans in violation of the program’s rules, according to a preliminary analysis released Tuesday by the House Select Subcommittee on the Coronavirus Crisis. Congressional investigators identified multiple areas of potential waste and fraud in the program, often referred to as PPP, which was part of the $2 trillion CARES Act.”
PPP FRAUD ROUNDUP
@Accountable_US | “Fraud has been rampant in the Trump administration’s Paycheck Protection Program (#PPP). We’re tracking incidents of fraud across the nation — here are some of the recipients who took from small businesses in need…” [View Twitter Thread]
BUSINESSES IN COMMUNITIES OF COLOR CONTINUE TO BE LEFT BEHIND
“The challenge has been particularly acute for Black-owned businesses, which were more than twice as likely to close down in the early months of the pandemic than small businesses over all, according to research from the Federal Reserve Bank of New York. Black-owned businesses were more likely to be in areas hit hard by the virus, had less of a financial cushion and were less likely to have established banking relationships, which put them at a disadvantage in seeking loans under the emergency Paycheck Protection Program in the critical first weeks that the aid was available.”
MNUCHIN TESTIFIES IN FRONT OF THE HOUSE
“Secretary Mnuchin has previously testified that, given the need to get relief money out quickly, it was inevitable that Treasury ‘ran into a lot of issues.’ That is a false dichotomy,” Clyburn said. “Taxpayers should not have to choose between quickly getting aid to those who need it and wasting federal funds, and there are simple steps that could have been taken to improve oversight and reduce fraud.”
NEW REPORT: RENTAL COMPANIES THAT TOOK PPP MONEY PREPARE TO EVICT TENANTS
“A new analysis from government watchdog Accountable.US finds that least three rental companies that have benefited from the SBA’s Paycheck Protection Program (PPP) – each having taken between $5 and $10 million in taxpayer money – have been busy filing eviction and debt collection cases against struggling tenants during the pandemic.”
@Accountable_US | “Yesterday NV, PA, and VA’s eviction moratoriums expired. Dozens of states’ protections have *already* expired. And rent is due today.
Millions of housing insecure Americans who have suffered losses of jobs and loved ones could now lose their homes as well. #EvictionCrisis…” [View Twitter Thread]