By Brittany De Lea FOXBusiness
While lawmakers look to issue another round of relief to businesses that are hurting because of the coronavirus pandemic, a new report indicates scammers may be taking advantage of aid programs.
The Small Business Administration Office of the Inspector General issued a report on Tuesday citing “serious” concerns about “rampant” fraud within the agency’s Economic Injury Disaster Loan Program and advance grant program.
PPP ROUND 2 PROPOSAL TARGETS SMALL, HARD-HIT BUSINESSES
There have been more than 5,000 complaints from financial institutions receiving loan deposits about suspected fraud.
CarGurus Great Deal. Blue, 1.5T LT AWD trim, Automatic, 30,551 miles. Leather Seats, Driver Confidence Package, Alloy Wheels, Bluetooth, Backup Camera, Remote Start, Convenience Package.
“Our preliminary review reveals strong indicators of widespread potential fraud in the program,” Inspector General Hannibal “Mike” Ware wrote in the report.
GOP HEALS ACT: WHAT’S INSIDE THE NEXT STIMULUS PROPOSAL
Examples of alleged fraud include using stolen identities, account holders attempting to move funds into investment accounts or foreign accounts, deposits into personal accounts and scams on social media.
Additionally, $250 million appears to have been awarded to ineligible recipients, while at least 275 duplicate loans are believed to have been made.
The CARES Act allowed the SBA to advance eligible businesses $1,000 per employee, up to a maximum of $10,000 as the applicant waited on a decision regarding a disaster loan.
Some of the loans have been frozen by financial institutions, but the report suggests that the SBA take immediate action to implement internal controls to prevent additional fraud.
- Chinese State-Run News Agency Xinhua Registers as Foreign Agent in US
- 2nd Biggest Cryptocurrency Ethereum Breaks $4,000 to Hit Record High
- Scholars Line Up to Join Anti-‘Woke’ Online Education Platform
- Homeless Man Asks Texas Steakhouse Owner for Job Busing, and She Gives Him ‘A Whole New Start’
- Arizona Formally Bans Post-Election Signature Fix for Mail-In Ballots
- Denmark Drops Johnson & Johnson COVID-19 Vaccine Over Possible Blood Clot Link on
- Ghislaine Maxwell’s Sex Crimes Trial in New York Delayed Until Fall on
- Trump Promises ‘Orderly Transition’ After Biden Certified as President-Elect on
- Trump Says Supreme Court ‘Incompetent and Weak’ Over Election Fraud on
- NH’s Voting Machines Are Capable of Redistributing Votes on