PPP Loan Scammers Caught

PPP Loan Scammers Caught

(AmericanProsperity.com) – The Payment Protection Program (PPP) gave many small businesses a fighting chance at surviving the pandemic. However, plenty of suspicious companies collected copious amounts of funding from the Small Business Administration (SBA) with little to validate their loans.

In a joint investigation between the Miami Herald/McClatchy and the Anti-Corruption Data Collective, over 75 questionable businesses received somewhere between $20 million and $50 million from the PPP.

A former FBI agent shares his thoughts on the investigation here:

According to the PPP rules, businesses must have been in existence on or before February 15, 2020, to be eligible for a loan. However, some companies that received this federal money show little evidence of being around at the time:

  • Buccaneer Technologies and Sonata Technologies, both located in Florida and supposedly operated by the Bowens family, registered as businesses in May of this year. Respectively, they received between $350,000 and $1 million, and between $1 and $2 million dollars.
  • Power1 Integrated of California registered as a business on May 14, and received two PPP loans from different banks within one day of each other in June.
  • Five Texas companies controlled by Joseph Sinoj received between $3.65 million and $8.7 million in assistance. But, two of the companies’ websites are identical to another one of Sinoj’s businesses, SanJose Systems, causing vast suspicion.

These are just a few examples of potential fraud cases and the misuse of federal assistance. While many of the PPP loans went to deserving businesses, fraudsters still found their way into the system. There will surely be more uncovered in the coming years.

~Here’s to Your Prosperity!

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