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The Department of Justice has already filed a string of criminal actions against borrowers it says illegally gamed the system, such as a 29-year-old Florida man who allegedly purchased a Lamborghini with some of his $3.9 million in PPP loan money. In another case, the DOJ alleges that a group of seven individuals raked in about $16 million in PPP funds through more than 80 fraudulent loan applications.
The SBA referred 91 cases to federal prosecutors for criminal prosecution in the 2020 fiscal year -- an increase of more than 700% from only 11 referrals the prior year, according to data from Syracuse University's Transactional Records Access Clearinghouse. The TRAC data shows that prosecutors already declined to press charges in some of these cases, while others remained under review.
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