Inaccuracies in the data or missing data can undermine oversight. Two years after going live, TAP hits a major milestone. [More than half of small-business loans went to larger businesses, new SBA data shows] This searchable list shows information for businesses that received loans of more than $150,000, as reported . The nonprofit MITRE Corporation found more than 85% of Paycheck Protection Program loan recipients did not indicate their race or ethnicity in their loan applications, Earlier this year, the Biden administration revamped the Paycheck Protection Program loan application to encourage self-reporting of demographic data and better illustrate the impact the PPP is having across various population segments. But the Small Business Administration acknowledged, as of late March, there is still limited demographic data on PPP borrowers.. The DOJ has pursued charges against large companies that received multi-million-dollar PPP loans, and it has pursued charges against individuals accused of obtaining six-figure PPP loans to finance lavish personal expenses. The Justice Department has brought criminal charges against at least 209 individuals in 119 cases related to Paycheck Protection Program (PPP) fraud since banks and other lenders began processing loan applications on behalf of the Small Business Administration on April 3, 2020. These comma-delimited files can be opened in Microsoft Excel or any other data management software. The New Americans: How San Diego grapples with educating refugees. Nick Schwellenbach is a Senior Investigator at POGO. Plastics industry insiders reveal the truth about recycling. Winds light and variable.. Mostly clear. criminally charging someone for stealing $10,000 or less. The SBA initially refused to release the names of businesses that obtained loans of less than $150,000. Seven of the approved loans were processed by Cross River Bank, a top Paycheck Protection Program lender that closely allied itself with financial technology firms. The involvement of a Small Business Administration employee in a pandemic loan fraud case raises questions about the agencys vetting of employees. At $367 billion, the amount of disaster funds provided through the EIDL COVID program is more than three times the amount of disaster loan funds approved for all disasters combined since the SBA was created in 1953, wrote Jovita Carranza, then-head of the Small Business Administration, in December 2020. More than 1,400 institutions had filed SARs related to PPP, and more than 900 institutions had filed SARs related to EIDL.. Each record represents a loan made from a commercial lending bank to a . Between May and October 2020, financial institutions filed more than 21,000 and 20,000 suspicious activity reports (SAR) related to PPP and EIDL, respectively, according to the Government Accountability Office. The program provided those loans to 146,000 state businesses, an average of just under $35,000 per business. We expect to go to trial because of the serious nature of this matter.. Normally, the agency can require loan applicants to fill out a form allowing the agency to verify their tax information with the Internal Revenue Service. Jonathan E. Green If faced with a DOJ investigation alleging PPP fraud, business owners and other individuals must carefully assess their risk and build a defense that is tailored to the specific circumstances and allegations at hand. The hospitality industry would prefer to see the federal government give them targeted grants, similar to those provided to the airline industry, Longstreet said. SBA has fired employees and contractors who were involved in approving loans to themselves or who inappropriately influenced loan approval. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. The original allocation of $349 billion was depleted in just 13 days. Generally, cases where there is any substantial gray areasuch as a lack of unambiguous evidence of fraud or when it wasnt clear what a government rule requiredare far more likely to lead to civil enforcement, or to no enforcement. Another large identity theft case led to charges against Jeremie Saintvil of Delray Beach, Florida in March. EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. In addition to automated checks against existing government databases, lenders could have conducted online searches or called businesses neighboring a loan applicant to help establish whether the company seeking the loan is real or is the size it claims to be. You can search the SBA's entire PPP loan data below. Not all the blame can be placed at the Small Business Administrations feet. These comma-delimited files can be opened in Microsoft Excel or any other data management software. (He also applied for a separate loan just days before being indicted.) Some of these qui tam lawsuits are traditional whistleblower cases, but others involve individuals who are slicing and dicing the data that has been made available about loans, according to Grossman. A picture from that stay shows Pape and Jung celebrating over sparkling wine. Jungs attorney declined to comment, and Papes attorney did not respond to a request for comment. Greenberg is a friend of Florida Republican Matt Gaetz, and both were identified in a recent New York Times report as having allegedly paid women for sex, as well as potentially a 17-year-old girl. It provided more than $2 trillion in economic relief to help Americans cope with the economic impact of the COVID-19 global pandemic. Associate Business groups have been lobbying to get Congress to quickly pass legislation to reverse the IRS guidance, he said. The data . While demonstrating lack of intent may be enough to prevent criminal prosecution in some cases, unintentional fraud is still a civil offense under the False Claims Act, FIRREA, and other federal statutes. Both programs lacked basic anti-fraud safeguards and the Small Business Administration exercised insufficient oversight, according to the agencys watchdog, the Government Accountability Office, and congressional committees that have investigated the programs. The primary federal agencies that are currently conducting PPP loan fraud investigations are: 1. Michigan PFAS Challenge Arguments Briefed For The Court. In July, the agencys inspector general warned of potentially rampant fraud in the Economic Injury Disaster Loan program. Data last refreshed on 1/31/2022. The SBA now also conducts manual loan reviews for the largest loans in the PPP portfolio and a random sampling of other loans. Underscoring the tension between fraud prevention and disbursing assistance quickly, the added checks to verify information submitted by applicants have somewhat slowed the processing of loan applications. A Project On Government Oversight (POGO) review of court filings up to April 2, 2021, found that the charged individuals allegedly sought a total of nearly $445 million in Paycheck Protection Program loans. NLRB Places New Limitations on Confidentiality and Non-Disparagement Settlement Will Benefit Many Aging-Out Children in the Green Card SEC Commissioner Discusses Reform to Regulation D, Massachusetts AG Settles Enforcement Action Against Auto Lender. According to the House Select Subcommittee on the Coronavirus Crisis, the SBA Office of Inspector General has received nearly 750,000 referrals of suspected identity theft related to the program over the last year. Associate In certified submissions to the federal government, the familys ministry claimed a substantial operation with 486 employees, a monthly payroll of over $2.76 million, and revenue exceeding $51 million in 2019. Firm estimates of fraud related to CARES Act spending, including the Paycheck Protection Program and the Economic Injury Disaster Loan program, may not be available until many more cases are brought and more analysis has been conductedpotentially years away. We also have compiled state-by-state files for download. Earlier this year, the DOJ announced the first civil settlement of a PPP loan fraud case. The Justice Department has accused numerous defendants of using Paycheck Protection Program loans for unlawful purposes, such as purchasing private planes, sports cars, and taking pricey trips to Las Vegas casinos. As of late March, the department has obtained 48 convictions. There were additional steps that could have been undertaken that would not have significantly slowed downin our view in the oversight communitythe delivery of funds to the public, said Michael Horowitz, the Justice Departments inspector general and chair of the Pandemic Response Accountability Committee, in testimony before Congress on March 25. The U.S. SBA regularly publishes EIDL loan data for all past EIDL loan recipients. But in the year since the CARES Act became law, it has received nearly 150,000 hotline complaints, representing a 19,500% increase over prior years, according to a staff memo from the House Select Subcommittee on the Coronavirus Crisis. PPP loan fraud investigations can have outcomes ranging from no liability to prosecution for multiple federal criminal offenses. PPP Loan Recipient List By State . 4. In one of the most complex cases to emerge since POGOs original analysis, at least seven individuals were indicted in a scheme that allegedly involved over 80 applications seeking a total of $30 million in Paycheck Protection Program loans. The alleged scam involved submitting false information about the applicants businesses as well as fraudulent tax returns that were identical for each of the defendants companies. The sum total of loans amounts to in excess of $521 billion, and in a statement, Treasury Secretary Steve Mnuchin remarked, "The PPP is providing much-needed relief to millions of American small . At least one Small Business Administration employee allegedly took bribes last year to process fraudulent Economic Injury Disaster loans, according to criminal charges recently unveiled by the Justice Department related to the developing scandal involving Representative Matt Gaetz (R-FL). The Small Business Administration has released new details on more than 11.7 million Paycheck Protection Program loans, shedding light on this year's list of recipients. The release states that, In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned a few acres of land. Instead, the defendants Clifton Pape, 45, and Sally Jung, 58, both of Cleveland, Texas, actually filed fraudulent EIDL applications with the SBA that contained the victims personal identification information.. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. Ryan Summers Theres a lot of red flags that they look at in the data to help us determine if its something we need to look at deeper.. The data shown has been made available to the public by the SBA. Investigating Power is a history of breakthrough investigations that revealed news and changed the national narrative on many major topics since the 1950s, from war to health to civil rights. Leaders of statewide business groups said they think the first round of PPP loans were vitally important to help businesses survive the pandemic economic slowdown and said another round of loans are needed now.