Firms the federal government hired to distribute <a href="https://www.dailywire.com/news/only-2-of-childrens-deaths-were-from-covid-and-school-closures-didnt-reduce-the-number" target="_blank" rel="noopener">coronavirus</a> Paycheck Protection Program loans promised to use high-tech methods to prevent fraud, but failed in part because abuse hurt taxpayers and not their own bottom line, according to a congressional investigation.
The Select Subcommittee on the Coronavirus Crisis found that two financial tech, or &#8220;fintech,&#8221; firms allegedly earned billions in profits by taking a percentage of each loan that they processed — often while barely looking at it. Some of the firms involved had little relevant experience, and one was run by a man who pleaded guilty in 2014 to insider trading.
&#8220;The investigation found that two unvetted and unregulated fintechs that, together, facilitated nearly one in every three PPP loans funded in 2021 — Womply and Blueacorn — failed to implement systems capable of consistently detecting and preventing fraudulent and otherwise ineligible PPP applications,&#8221; a <a href="https://coronavirus.house.gov/sites/democrats.coronavirus.house.gov/files/2022.12.01%20How%20Fintechs%20Facilitated%20Fraud%20in%20the%20Paycheck%20Protection%20Program.pdf" target="_blank" rel="noopener">committee report</a> released Thursday said.
Blueacorn gave nearly $300 million in profits to its owners but spent only $8.6 million on fraud prevention, the report said. It spent far more on marketing, and Blueacorn advertised &#8220;free money&#8221; in &#8220;30 seconds&#8221; to applicants, according to the report from the committee, which is led by Rep. Jim Clyburn (D-South Carolina).
Blueacorn had a small company called Elev8 Advisors, which was &#8220;run by a member of Blueacorn’s senior leadership,&#8221; review loan applications, and it was staffed with dozens of friends and family of the owner. The owner, Kristen Spencer, wrote in a text message obtained by the committee: “We are doing this for the people we hired to make money. Our friends and family. That is where the money is going. And it will be life changing money for anyone who does it.”
Employees were told that reviewing each loan should take them &#8220;less than 30 seconds,&#8221; employees told the committee.
Elev8&#8217;s owners, Kristen and Adam Spencer, also received $200,000 in PPP loans — even though the pandemic had been a boon for their business, not a hardship — around the same time they purchased an $8 million mansion in cash, the report said. One of the loans claimed Kristen was an &#8220;interior architect&#8221; for her husband&#8217;s company, even though that company was located in a WeWork, according to the investigation.
Blueacorn&#8217;s owners focused on big loans, which brought the largest commissions, and ignored those from small business owners, writing &#8220;who f***ing cares&#8221; and &#8220;delete them,&#8221; the report said. Blueacorn is owned by Nathan Reis and Stephanie Hockridge. The company also received $300,000 in PPP loans for itself, some of which were vetted by itself. And on the application, Reis falsely claimed to be black and a veteran, the report said.
Another fintech company, Womply, had revenue of $2 billion in 2021 and a gross profit margin of nearly 90%. Lending partners said its anti-fraud controls were &#8220;put together with duct tape and gum,&#8221; the report said. Additionally, the SBA said that even the application for $5 million in PPP loans that Womply filed for itself was ineligible.
Womply CEO Toby Scammell was convicted of insider trading in 2014 and led the company&#8217;s fraud prevention efforts. He also instructed the company not to cooperate with federal investigators, the report said.
Criminals quickly realized that they should apply through fintech firms if they wanted fake loans approved, according to the report. One gang member said that &#8220;everybody in the hood&#8221; was using Womply, according to the report. Investigators believe the PPP loans were used to buy guns and drugs.
Another fintech called Kabbage approved more than 300,000 loans. Its employees were concerned that fraud rates were &#8220;wildly underestimated,&#8221; but a manager told them &#8220;the risk here is not ours – it is SBA’s risk,” the report said.
The report concluded that &#8220;Based on these findings, Congress and the SBA should consider carefully whether unregulated businesses such as fintechs, many of which are not subject to the same regulations as financial institutions, should be permitted to play a leading role in future federal lending programs.&#8221;
The PPP program is overseen by the Small Business Administration. The SBA’s Inspector General has said the levels of fraud present in the PPP program were “unprecedented,” and that &#8220;This problem occurred because the agency did not establish a sufficient fraud risk framework at the start of and throughout PPP implementation.”
Related: <a href="https://www.dailywire.com/news/biden-uses-little-known-covid-waiver-to-write-off-9b-in-student-loans-for-150000-government-nonprofit-workers">Biden Uses Little-Known COVID Waiver To Write Off $9B In Student Loans For 150,000 Government, Nonprofit Workers</a>

TURKEY-ECONOMY-CURRENCY-DOLLARS-FEATURE

Coronavirus Loan Fraud Prevention Fell To ‘Unvetted’ Firms That Profited Hugely While Ignoring Fraud, Congress Finds

Coronavirus Loan Fraud Prevention Fell To 'Unregulated' Firms That Profited Hugely While Ignoring Fraud, Congress Finds

Coronavirus

Coronavirus Relief

Fraud

James Clyburn

Paycheck Protection Program (PPP)

Small Business Administration

U.S.

Rep. James Comer (R-KY) promised that the House Oversight Committee would target waste, fraud, and abuse in the new Congress.
Appearing on NBC&#8217;s &#8220;<a href="https://www.nbcnews.com/meet-the-press/video/full-comer-interview-we-already-have-many-gun-laws-on-the-books-155379781692" target="_blank" rel="noopener">Meet the Press</a>&#8221; Sunday, Comer told host Chuck Todd that the Republican-led committee would investigate the hundreds of billions of dollars in COVID-related funding while accusing Democrats of misusing it to focus on left-wing social issues.
&#8220;We&#8217;re gonna investigate between 40 and 50 different things,&#8221; Comer vowed. &#8220;We have the capacity, we&#8217;ll have 25 members on the committee, and we&#8217;re gonna have a staff close to 70&#8230; And let&#8217;s just face it, Chuck, over the past two years, the Democrats on the House Oversight Committee haven&#8217;t investigated anything in this administration. They&#8217;ve investigated the Washington Commanders football team, we&#8217;ve had several hearings on social issues that the Oversight Committee has absolutely nothing to do with, issues like abortion.&#8221;
&#8220;We believe that there have been hundreds of billions, if not trillions of dollars wasted over the past three years&#8211;that spans two administrations&#8211; in the name of COVID,&#8221; Comer continued.
&#8220;We want to have hearings on that. We want to try to determine what happened with the fraudulent unemployment insurance funds, the fraudulent [Paycheck Protection Program] loan funds, some of this money that&#8217;s being spent for state and local governments in the COVID stimulus monies&#8230; these are things that are going to be priorities for us as a committee,&#8221; he added.
In March, Bloomberg&#8217;s editorial board <a href="https://www.dailywire.com/news/bloomberg-u-s-doled-out-billions-in-fraudulent-covid-aid-wheres-the-accountability" target="_blank" rel="noopener">said</a> the U.S. Secret Service estimated that $100 billion in COVID relief funds were disbursed due to fraud, corrupt deals, or to dead people. Another study from the Department of Labor found that more than $87 billion in COVID-related unemployment benefits were improperly paid. The Small Business Administration doled out more than $6 billion to recipients it later suspected of fraud. The IRS also reportedly issued more than 2 million stimulus checks, worth more than $3.5 billion, to dead people.
Earlier this week, Comer blamed high-profile Democrats for tarnishing the integrity of congressional probes and promised change once Republicans take over.
“I don’t believe congressional investigations have a whole lot of credibility right now,” Comer told Punchbowl News in an interview. “I blame Adam Schiff for that. But it’s also both parties to blame for investigations in the past. But I really want to change that.”

Throwing bucket of money

‘Hundreds Of Billions, If Not Trillions Of Dollars Wasted’: Top Republican Says Pandemic Fraud At Top Of Oversight Committee’s To-Do List

Top Republican Says Pandemic Fraud At Top Of Oversight Committee's To-Do List

Congress

COVID

House Republicans

Investigation

Meet the Press

Politics

Daily Wire Editor Emeritus <a href="https://www.dailywire.com/topic/ben-shapiro">Ben Shapiro</a> bashed the <a href="https://www.dailywire.com/topic/biden-administration">Biden administration</a> on Friday for publicly chastising people skeptical of his <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan">plan to unilaterally forgive</a> student debt.
President Joe Biden’s plan, announced Wednesday, would forgive up to $10,000 in federal student loan debt for borrowers who make under $125,000 a year — and up to $20,000 for some low-income borrowers. But as many remain skeptical, the Biden administration has taken to accusing GOP lawmakers who took out Paycheck Protection Program loans — which were designed to keep businesses afloat during forced government shutdowns and be forgiven — of hypocrisy.
“Many businesses took that money. They took that money not out of greed, but because the government had shut down their businesses,” Shapiro said. “They took that money because the government was begging these businesses to keep their employees afloat.”
“This is morally reprehensible; it&#8217;s disgusting,” said Shapiro in a monologue Friday. “If you are a business owner who just wants to operate and keep your employees employed, the government will shut you down, they&#8217;ll destroy you financially, they&#8217;ll promise you help, and then two years later, they&#8217;ll destroy you reputationally. They’ll tell you that you’re a good person for ensuring your employees can support their families, and then two years later, they&#8217;ll use that as leverage to force you to support their politically driven plan to bail out their favored political constituencies.”
Biden’s plan has also been criticized in mainstream Democratic circles, including the <a href="https://www.dailywire.com/news/wapo-editorial-board-slams-biden-for-inflationary-regressive-ill-conceived-student-loan-cancelation">Washington Post’s editorial board</a> and former Treasury Secretary <a href="https://www.dailywire.com/news/top-democrat-economists-blast-bidens-student-loan-bailout-pours-gasoline-on-the-inflationary-fire">Lawrence Summers</a>. Last year, <a href="https://www.dailywire.com/news/pelosi-shoots-down-schumers-student-debt-plea-to-biden-he-does-not-have-that-power">House Speaker Nancy Pelosi</a> (D-CA) was also skeptical of unilateral plans to cancel student loans, explaining to reporters that Biden didn’t have that kind of power.
Nixing $10,000 of student loan debt per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to a nonpartisan <a href="https://www.dailywire.com/news/bidens-student-loan-cancellation-would-cost-330-billion-and-largely-help-the-wealthy">analysis</a> from the University of Pennsylvania’s Wharton School. A report from the <a href="https://www.brookings.edu/research/student-loan-forgiveness-is-regressive-whether-measured-by-income-education-or-wealth/">Brookings Institution</a> observed that one-third of student debt is owed by the wealthiest 20% of households, while only 8% is owned by the bottom 20% — likely because graduate degrees are <a href="https://www.dailywire.com/news/schumer-slams-fat-cats-who-dont-want-to-cancel-student-loans">often necessary</a> for the most lucrative professions.
“Democrats believe that everyone should be able to follow their passion on your dime. And so they are happy to slander you as a deadbeat for being responsible, while praising deadbeats for following their dream to become a professional finger painter. You’re the bad guy. After all, you’re the one who pays the bills. And only suckers pay their bills.”
Shapiro also noted that Biden doesn’t seem to want a legal reason for debt forgiveness, just as he didn’t need a legal excuse for past unconstitutional actions.
“Just like he didn’t need an actual legal excuse to use the Occupational Safety and Health Administration to cram down vaccine mandates on 80 million Americans before he was stopped by the Supreme Court. Just like he didn’t need an actual legal excuse to use the CDC to cram down eviction moratoria before he was stopped by the Supreme Court.”
“If you own a business, they hate you. If you paid your student loans, they hate you. If you are a responsible member of the free market economy, they hate you,” Shapiro said.
<iframe loading="lazy" title="They Hate You, and They’re Taking Your Money" width="500" height="281" src="https://www.youtube.com/embed/PhQCi6xRiSc?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Ben Shapiro

‘Morally Reprehensible’: Ben Shapiro Bashes Biden Admin For Attacking Business Owners Who Criticized Student Loan Bailout

Ben Shapiro Bashes Biden For Going After Business Owners Criticizing Admin's Student Loan Bailout

Joe Biden

Larry Summers

Nancy Pelosi

Student Loan Cancellation

A Las Vegas callgirl who comes up repeatedly on <a href="https://www.dailywire.com/topic/hunter-biden">Hunter Biden</a>&#8216;s laptop hit the jackpot with a $20,207 check from the federal government for her &#8220;female owned sole proprietorship” shortly after her well-connected client&#8217;s father moved into the White House, according to federal records.
The check Uncle Sam cut to Cheryl Deboves was part of the coronavirus Paycheck Protection Program (PPP) bailout, and she listed it as saving one job in the field of &#8220;Independent Artists, Writers, and Performers.&#8221; But unless she changed professions after President Joe Biden&#8217;s troubled son abandoned his laptop in a Delaware computer repair shop, her writing and performing was hardly worthy of taxpayer subsidy.
&#8220;Honestly babe the problem is you have too many girls there,&#8221; she wrote in one August 2018 text to the younger Biden. &#8220;I understand you like a lot of girls but that&#8217;s fine do one at a time at the tops to Which is fine but just hire the second girl for like 1 hour.&#8221;
Other text exchanges between Hunter Biden and Deboves, who had pled <a href="https://www.docketalarm.com/cases/Nevada_State_Las_Vegas_Township_Justice_Court_Department_2/17M21600X/State_of_Nevada_vs._DEBOVES_CHERYL_ANN/">no contest</a> to a charge of prostitution in November 2017, are wildly inappropriate for a family-friendly news site and revolve around sex, partying, and drug deals gone awry.
Hunter Biden&#8217;s reply to the message above implied that the first son was committed to orgies over one-on-one assignations.
&#8220;Yes I do want you to come over but with the confidence that with me it&#8217;s not an either or for who stays and who goes,&#8221; he wrote.
The next week, Hunter Biden tasked her with buying crack supplies for him.
&#8220;Hey babe don&#8217;t you need a pipe and chore?&#8221; she wrote.
When Deboves didn&#8217;t return, Biden texted her, &#8220;WTF babe where are you.&#8221;
Her reply was disturbing.
&#8220;baby I am so sorry listen I&#8217;m not trying to take advantage of you but I spent all of the money that you got me on black,&#8221; she texted.&#8221;I went to Walmart to get needles babe.&#8221;
On August 23, 2018, Deboves texted Hunter Biden to say drug dealers were threatening her, and she begged for his help.
&#8220;Eric keeps threatening me, and now he has someone named keaton threatening me too who just got out of prison or whatever&#8230; Can you please help me? Like he scares me a lot. I hate it when men threaten women,&#8221; she wrote.
There was no reply from Hunter Biden on the laptop, which President Joe Biden, much of the press, and social media platforms suppressed as &#8220;Russian disinformation&#8221; before the 2020 election, but have now widely acknowledged as authentic.
The text messages between Deboves and Hunter Biden paint the picture of a desperate and broken soul clinging to the venal degenerate whose father was on the verge of becoming leader of the free world.
&#8220;You told me to download [Cash app] you told me that you would definitely text me back or call me back you told me that you would,&#8221; she pleaded on August 31.
But that message was ignored and Hunter Biden seemingly ghosted her for months, ignoring messages such as &#8220;Can you PLEASE CALL me its a emergency!!!!!&#8221; Then, on February 28, 2019, he texted her.
&#8220;Hi beautiful how are you been too long,&#8221; Biden wrote, also asking her to FaceTime naked. He arranged to to pay her to ensure her phone plan would have data for the call. On March 1, he sent her $500 through Venmo, according to emails on his laptop.
On April 7, 2021, shortly after Joe Biden was inaugurated, Deboves received the <a href="https://www.federalpay.org/paycheck-protection-program/cheryl-deboves-las-vegas-nv">$20,207</a> Paycheck Protection Loan. The loans are generally forgiven, hence amounting to a grant. The PPP program was intended to help businesses retain jobs in the face of the coronavirus pandemic. Debove&#8217;s loan went to her individually rather than to a business, noting that it was a &#8220;female owned&#8221; sole proprietorship.
Deboves could not be reached for comment.
Payments from the big-spending PPP program subsidizing criminals was potentially so common that another PPP payment was also <a href="https://www.federalpay.org/paycheck-protection-program/melissa-underbrink-las-vegas-nv">given</a> to an individual using the same address as Deboves, Melissa Underbrink, on May 5, 2021 even though she appears to have been in prison for credit card theft until late 2019. The federal check was to a &#8220;Self-employed Individual&#8221; listing the industry &#8220;All Other Personal Services,&#8221; and was also listed as saving one job.
According to Nevada Department of Corrections records, Underbrink begun a one- to four-year sentence for burglary, drug trafficking, and possession of a stolen credit card in early 2018 and was released in late 2019.
The Small Business Administration, which administers the PPP program, bars most recent criminals from getting the loans.
&#8220;A business is ineligible due to an owner’s criminal history&#8221; if the owner &#8220;has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for, a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years,&#8221; <a href="https://www.sba.gov/sites/default/files/2022-05/FAQ%20PPP%20for%20Borrowers%20and%20Lenders%20Questions%201-70%20V11%20%28FINAL%205-5-22%29-508.pdf">the program&#8217;s website warns</a>. The application <a href="https://www.sba.gov/sites/default/files/2021-03/BorrowerApplication2483ARPrevisions%20%28final%203-18-21%29-508.pdf">form</a> asks the applicant about this criminal history.
Underbrink could not be reached for comment.
According to a Daily Wire analysis, the federal government gave more than 83,000 loans totaling about a billion dollars to individuals who claimed to be working as &#8220;Independent Artists, Writers, and Performers.&#8221;
Some seem dubious or at best opaque, such as <a href="https://projects.propublica.org/coronavirus/bailouts/loans/rizza4shizza-8267748409">“Rizza4Shizza,”</a> which collected $17,000.
On May 26, the SBA&#8217;s <a href="https://www.sba.gov/document/report-22-13-sbas-handling-potentially-fraudulent-paycheck-protection-program-loans">Inspector General</a> said the levels of fraud present in the PPP program were &#8220;unprecedented,&#8221; and that SBA &#8220;did not have an organizational structure with clearly defined roles, responsibilities, and processes to manage and handle potentially fraudulent Paycheck Protection Program (PPP) loans across the program. In addition, the agency did not establish a centralized entity to design, lead, and manage fraud risk. This problem occurred because the agency did not establish a sufficient fraud risk framework at the start of and throughout PPP implementation.&#8221;

Hunter Biden’s Laptop Lady Got $20K Federal Stimulus For ‘Female–Owned Sole Proprietorship’

Hunter Biden’s Laptop Lady Got $20K Federal Stimulus For 'Female–Owned Sole Proprietorship'

Hunter Biden

laptop computer

Prostitution

New York Times White House correspondent Michael Shear asked whether President Joe Biden might move to &#8220;claw back&#8221; a pandemic-related business loan obtained by gun manufacturer Daniel Defense.
Shear claimed that the 18-year-old shooter who barricaded himself inside Robb Elementary School in Uvalde, Texas — killing 19 students and two adults before law enforcement officers killed him — had used a firearm made by Daniel Defense. He then asked whether the White House would consider pulling back the $3 million PPP loan in light of the fact that their product had been used to perpetrate a mass shooting.
WATCH:
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
.<a href="https://twitter.com/shearm?ref_src=twsrc%5Etfw">@shearm</a> asks whether the White House plans to &quot;claw back&quot; the PPP loan obtained (legally) by the company that made the firearm used by Uvalde shooter.<a href="https://twitter.com/PressSec?ref_src=twsrc%5Etfw">@presssec</a> asks for the name of the company. <a href="https://t.co/gBm6ThIfBb">pic.twitter.com/gBm6ThIfBb</a>
&mdash; Virginia Kruta (@VAKruta) <a href="https://twitter.com/VAKruta/status/1529929289231220739?ref_src=twsrc%5Etfw">May 26, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;First, apparently the company that sold the shooter his rifles received a $3 million PPP loan under the last administration,&#8221; Shear began. &#8220;Do you know if there&#8217;s any effort by this administration to claw that money back?&#8221;
&#8220;So this is the first I&#8217;m hearing about this, so I would have to go back to the team and look into it,&#8221; Jean-Pierre replied. &#8220;Do you know the name of the company?&#8221;
&#8220;The company is Daniel Defense, D-a-n-i-e-l Defense, apparently they received a $3.1 million PPP loan right at the beginning,&#8221; Shear continued. &#8220;My colleagues have been writing about it apparently today, but if &#8230; assuming that is confirmed, would the president do you think support the idea of trying to claw that money back?&#8221;
&#8220;I — honestly, Michael, I need to check with the team and make sure that is actually factual, but I need to check with the team,&#8221; Jean-Pierre said again.
Daniel Defense, located in Savannah, Georgia, was founded in 2001 and is one of the largest private gun manufacturers in the United States — thanks to millions in government contracts for weapons components that are used by the U.S. military.
Since the Uvalde shooter bragged about <a href="https://www.foxnews.com/us/uvalde-gun-daniel-defense-pulls-out-nra-event-houston">purchasing his firearm from Daniel Defense</a>, the company has faced a barrage of attacks on social media — many critical of a photo posted by the company showing a young boy holding a rifle across his lap. &#8220;Train up a child in the way he should go,&#8221; the caption reads. &#8220;And when he is old, he will not depart from it.&#8221;
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
The cowards <a href="https://twitter.com/DanielDefense?ref_src=twsrc%5Etfw">@DanielDefense</a>, who allegedly sold one of the weapons used to murder children in Texas yesterday, deleted this tweet and locked their account some time this morning.
But the internet is forever. <a href="https://t.co/c5nh6wtWcj">pic.twitter.com/c5nh6wtWcj</a>
&mdash; Gabe Rosenberg (@Gaber205) <a href="https://twitter.com/Gaber205/status/1529482499897929728?ref_src=twsrc%5Etfw">May 25, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In the days since the shooting, Daniel Defense has made its official Twitter account private and the company has <a href="https://www.usatoday.com/story/news/investigations/2022/05/25/guns-used-uvalde-shooting-prompt-outcry-could-lead-lawsuits/9929998002/">reportedly been removed</a> from the list of vendors scheduled to appear at Friday&#8217;s scheduled annual meeting of the National Rifle Association (NRA).
Steve Reed, the company&#8217;s vice president of marketing, issued a statement on the tragedy. &#8220;We are deeply saddened by the tragic events in Texas this week. Our thoughts and prayers go out to the families and community devastated by this evil act,&#8221; he said, adding that the company would cooperate with federal, state, and local law enforcement.

Media Briefing Held By Press Secretary Karine Jean-Pierre At The White House

NYT Reporter Asks If White House Will ‘Claw Back’ COVID Relief Loan From Gun Manufacturer After Uvalde Shooting

COVID-19

firearms

Karine Jean-Pierre

New York Times

School Shooting

Uvalde

White House

A beloved 1990s star was arrested this week in connection with an alleged COVID-19 fraud scheme.
Austin St. John, who starred as the Red Ranger Jason Lee Scott in &#8220;Mighty Morphin Power Rangers,&#8221; was arrested Thursday in connection with a scheme that allegedly defrauded some $3.5 million in COVID-19 related funds from the federal Paycheck Protection Program. St. John, whose real name is Jason Lawrence Geiger, was one of 18 individuals arrested as part of the suspected fraud ring.
According to <a href="https://www.tmz.com/2022/05/20/red-power-ranger-arrested-charged-fraud-fbi-raid/?adid=social-twa">TMZ</a>, approximately 15 FBI agents arrived at St. John&#8217;s home in McKinney, Texas, at around 7 o&#8217;clock Thursday morning. The agents entered St. John&#8217;s home, brandishing rifles, and walked out with the 47-year-old actor in handcuffs. The <a href="https://nypost.com/2022/05/22/power-ranger-actor-actor-jason-lawrence-geiger-busted-in-covid-relief-scheme/">New York Post</a> reported that the fraud ring was allegedly spearheaded by Michael Lewayne &#8220;Tank&#8221; Hill and Andrew Charles Moran. A grand jury in the federal Eastern District of Texas indicted the 18 individuals on charges of conspiracy to commit wire fraud.
In a statement, the <a href="https://www.justice.gov/usao-edtx/pr/18-arrested-charged-east-texas-paycheck-protection-program-related-fraud">Department of Justice</a> named St. John as one of the defendants ordered by the grand jury to appear before a magistrate judge, complete with his iconic role:
<blockquote>Jason Lawrence Geiger, a/k/a Austin St. John a/k/a the Red Power Ranger, 47, of McKinney</blockquote>
&#8220;[The] defendants&#8230; are alleged to have executed a scheme to defraud lenders and the Small Business Administration’s (SBA&#8217;s) Paycheck Protection Program (PPP),&#8221; The DOJ said. &#8220;Hill is alleged to have recruited co-conspirators to use an existing business or create a business to submit applications to obtain PPP funding.  Once enlisted, Moran is alleged to have assisted his co-conspirators with the application paperwork, including fabricating supporting documentation and submitting the application through the online portals.  On the applications, the defendants are alleged to have misrepresented material information such as the true nature of their business, the number of employees, and the amount of payroll.  Based on these material misrepresentations, the SBA and other financial institutions approved and issued loans to the defendants. Once in receipt of the fraudulently obtained funds, the defendants did not use the money as intended, such as to pay employee salaries, cover fixed debt or utility payments, or continue health care benefits for employees.  Instead, the defendants typically paid Hill and Moran, transferred money to their personal accounts, and spent the funds on various personal purchases.  In other instances, the defendants sent the fraudulently obtained funds to [defendant] Jonathon Spencer for purported investment in foreign exchange markets.  In total, the defendants are alleged to have fraudulently obtained at least 16 loans and at least $3.5 million.&#8221;
If convicted, each of the 18 individuals faces up to 20 years in federal prison.
<section id="cb-57bbf348167ffc8cb0d675b5d2df9489" class="canvas-block canvas-block-permalink canvas-text-block canvas-text-block-permalink canvas-text-block--default updated " data-context="{&quot;section&quot;:&quot;permalink&quot;,&quot;name&quot;:&quot;text_block&quot;}">In a <a href="https://twitter.com/ASJAustin/status/1527717367790305282">statement</a> posted to his Twitter account Saturday, St. John&#8217;s agent Zachery McGinnis said that St. John&#8217;s involvement in the alleged scheme was tenuous, and expressed optimism that the actor would be exonerated. &#8220;The indictment detailed today is populated by a multitude of individuals — the majority of which Austin has no knowledge of, and has never met or interacted with,&#8221; McGinnis wrote. &#8220;It is our understanding that Austin put his faith, reputation and finances in the hands of third parties whose goals were self-centered and ultimately manipulated and betrayed his trust. We expect Austin&#8217;s legal team to successfully defend against these charges and lead to his ultimate exoneration.&#8221;</section>
St. John rose to fame for his role as Jason, the Red Power Ranger and leader of the titular &#8220;Mighty Morphin Power Rangers,&#8221; beginning in 1993. He held the role for two seasons of the children&#8217;s action show, as well as a feature-length movie based on the series, which premiered in theaters in 1995. St. John reprised the role of Jason in the sequel series, &#8220;Power Rangers Zeo,&#8221; and has made appearances in several episodes of subsequent series in the Power Rangers franchise.
St. John is not the first Red Ranger to be fitted for an orange jumpsuit. <a href="https://www.bbc.com/news/newsbeat-39452035">Ricardo Medina, Jr.</a>, who played Red Ranger Cole Evans in &#8220;Power Rangers Wild Force,&#8221; was convicted of voluntary manslaughter for stabbing his roommate with a sword. Medina was sentenced to 6 years in prison, but has since been released.

Fan Expo Vancouver

‘Power Rangers’ Star Austin St. John Arrested As Part Of COVID Fraud Scheme

Crime

Television

In his 2022 State of the Union address, President Biden <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/03/01/remarks-of-president-joe-biden-state-of-the-union-address-as-delivered/">said</a>, “Tonight, I’m announcing that the Justice Department will name a chief prosecutor for pandemic fraud.” Sorting through the mounds of waste and abuse in the government’s pandemic relief programs might make that official as sick as the Omicron variant.
With the economy setting new records for growth and prosperity, politicians forced businesses to close their doors in the name of fighting COVID-19. To compensate, the federal government allocated trillions of tax dollars to relieve laid-off workers — but instead of reaching them, some of those funds purchased sports cars, put down payments on luxurious homes, and even reportedly paid a hitman to kill a 24-year-old woman and her three-year-old daughter.
The culprit is the size, scope, and speed of the relief effort’s two largest programs for small businesses: the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). The Small Business Administration, which administered both programs, said it lacked the personnel and resources to vet the sheer volume of applications it received — so the SBA processed as many loans in 14 days as it normally approves in 14 years. A <a href="https://www.oversight.gov/sites/default/files/oig-reports/PRAC/SBAFraudControlsFinal02Jan21.pdf">report</a> from the Pandemic Response Accountability Committee, released in January, stated:
<blockquote>The SBA, in conjunction with the U.S. Department of the Treasury, approved a nationwide network of more than 5,000 lenders, including about 800 new lenders, to review PPP applications, assess borrowers’ eligibility, and decide on the suitability of making a loan under delegated authority. PPP lenders reviewed loans quickly, disbursing more than 1.7 million loans totaling nearly $343.3 billion in just 14 days after the SBA launched the program. According to the SBA, it “&#8230;processed 14 years’ worth of loans in the first 14 days of the PPP program and reached the smallest businesses with an average loan of $101,000.” </blockquote>
The SBA admitted that, in the process, it “<a href="https://www.sba.gov/sites/default/files/2021-05/SBA%20OIG%20%20Report%2021-15.pdf">lowered the guardrails</a>” protecting taxpayers against fraud. As a result, it approved an unknown number of applicants who claimed aid for businesses that did not exist or had been closed before the pandemic, demanded wages for more employees than they employed, or engaged in identity theft. While the full amount of COVID fraud remains unknown, as Biden’s comments make clear, some stories have come to light, including:
Murder for hire
The most vicious allegation of COVID relief fraud resulted in the murder of a young woman and the attempted murder of her young daughter. Prosecutors say 33-year-old Jasmine Martinez obtained a <a href="https://www.federalpay.org/paycheck-protection-program/jasmine-martinez-miami-fl">$15,000</a> PPP loan last April, putatively to keep her beauty salon in business. But prosecutors say Martinez used the money to have her boyfriend, Romiel Robinson, hire a hitman a woman with whom she had a years-long rivalry. The warrant claims Martinez made “a series of withdrawals of over $10,000 in cash and/or payments” from the PPP loan in the “days leading up to the homicide.”
Last May 3, a gunman shot and killed 24-year-old Le&#8217;Shonte Jones outside the Coral Bay Cove apartments in Naranja, Florida. Bullets also struck Jones’ <a href="https://www.wkbn.com/news/national-world/woman-accused-of-using-ppp-loan-to-hire-hitman/">3-year-old daughter</a>, who lived. NBC Miami <a href="https://www.nbcmiami.com/news/local/documents-reveal-murder-for-hire-plot-ppp-fraud-behind-killing-of-tsa-agent-in-naranja/2691756/">reports</a> that the suspected hitman, Javon Carter, even made a remark that could be interpreted as a backhanded reference to PPP fraud: Police officers reportedly found video of Carter counting out the cash after the job calling it “just another day at the office.”
While this shocking story has yet to be adjudicated, many other cases of COVID fraud have already revealed the multiform ways in which Americans defrauded their fellow citizens by gaming federal relief plans.
Mercedes, mansions, and &#8216;Arkansas Mo&#8217;
Two brothers — Richard and Artur Ayvazyan — as well as Richard’s wife, Marietta Terabelian, defrauded the government of more than $20 million in PPP and EIDL funds. They used the names of disabled and elderly people, dead people, and foreign exchange students who had left the country long ago. They used the PPP proceeds to <a href="https://www.justice.gov/usao-cdca/pr/san-fernando-valley-family-members-sentenced-years-prison-fraudulently-obtaining-tens">purchase luxury homes</a> in Tarzana, Glendale, and Palm Desert, California. “They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing and a Harley-Davidson motorcycle,” according to the Justice Department. Richard, Marietta, and sister-in-law Tamara Dadyan fled after their conviction in November 2021, but authorities <a href="https://www.nbclosangeles.com/news/coronavirus/encino-covid-fraud-fugitives-captured-montenegro-ayvazyan/2833612/">captured</a> them in Montenegro in February.
In late January, 46-year-old Moustapha Diakhate of Connecticut <a href="https://www.justice.gov/usao-ct/pr/stamford-man-who-fraudulently-obtained-more-4-million-covid-19-relief-funds-pleads-guilty">confessed</a> that he used erroneous information to obtain $4 million in PPP funds for six business entities. He then used taxpayer funds to “pay off a loan he had been provided to purchase of a 2010 Porsche Panamera Turbo, and to purchase both a Mercedes and BMW. He also purchased a $50,000 certificate of deposit with PPP funds,” according to the DOJ.
A judge sentenced Maurice Fayne — better known as reality TV star “Arkansas Mo” of “Love &amp; Hip Hop: Atlanta” fame — to <a href="https://www.justice.gov/usao-ndga/pr/reality-tv-star-sentenced-ppp-fraud-and-operating-multimillion-dollar-ponzi-scheme">17 years</a> in prison after Fayne admitted he defrauded the PPP program to cover the costs of a preexisting Ponzi scheme: He pretended to have a trucking business, for which he solicited investments. When the federal government announced its COVID relief program, he claimed the business employed 107 people and obtained a PPP loan worth $3.7 million. The Justice Department said Fayne admitted that he spent:
<ul>
<li>$40,000 for past-due child support;</li>
<li>$50,000 for restitution owed in a previous fraud case;</li>
<li>$65,000 in cash withdrawals;</li>
<li>$85,000 for custom-made jewelry;</li>
<li>$136,000 to lease a Rolls-Royce;</li>
<li>$230,000 to associates who helped him run a Ponzi scheme;</li>
<li>$907,000 to start a new business in Arkansas.</li>
</ul>
Some COVID-19 fraud schemes allegedly involved massive numbers of people scattered around the country. On February 1, the Justice Department announced that it had charged <a href="https://www.justice.gov/usao-ndga/pr/22-people-charged-connection-multi-million-dollar-paycheck-protection-program-fraud">22 people</a> in Atlanta with a grand conspiracy to defraud the program of $3,899,377. Prosecutors say Mark Mason of Atlanta worked with Richard Mahee of New Jersey to ask people how much money they would like to receive from PPP. They allegedly created fraudulent tax documents to obtain that amount, and then took a portion of the proceeds as a “success fee.”
Similarly, last December, the Department of Justice charged Hamza Abbas of Texas and 14 others with perpetrating <a href="https://www.justice.gov/opa/pr/four-charged-35-million-covid-19-relief-fraud-scheme">$35 million</a> in PPP fraud. Prosecutors say the defendants tried to cover their tracks by writing checks to fictitious employees, but they laundered the money to themselves and their relatives.
Critics say this kind of fraud is inevitable in any massive federal spending program, especially one executed in such a rushed manner. “People take advantage of government money,” <a href="https://video.foxbusiness.com/v/6298618319001#sp=show-clips">said</a> Tom Schatz of <a href="https://cagw.org/">Citizens Against Government Waste</a>.
This is only the tip of the iceberg. Last December, the Secret Service estimated there is <a href="https://www.wave3.com/2021/12/22/secret-service-nearly-100b-stolen-pandemic-relief-funds/">$100 billion</a> in total fraud from all COVID relief programs that the government had not yet been prosecuted.
Furthermore, while COVID-19 relief is a large program, it is only one corner of a vast junkyard of federal waste. The federal government has admitted to making <a href="https://www.openthebooks.com/assets/1/6/Improper_Payments_Report_v8.pdf">$2.3 trillion</a> in improper payments between 2004 and 2020, according to a report from <a href="https://openthebooks.com/">OpenTheBooks.com</a>. Federal law defines that term as “payments made by the government to the wrong person, in the wrong amount, or for the wrong reason.” And, of course, those are just the cases that are publicly known. The full scale of fraud is so vast as to remain unknown, or possibly unknowable.
While it is encouraging that the Biden administration has charged someone with accounting for the public’s money, it’s discouraging that he remains committed to budget-busting, multitrillion-dollar spending programs like the <a href="https://www.dailywire.com/news/whats-in-joe-bidens-build-back-better-act">Build Back Better Act</a> (which he recently <a href="https://www.whitehouse.gov/build/">renamed</a>, “Building a Better America”). The definition of conservatism is learning from the past. But even a liberal Democrat like President Biden could look at the bipartisan waste, fraud, and abuse created by the federal COVID-19 relief fund and realize history will repeat itself.

Mercedes, Mansions, And Murder: How Fraudsters Spent Millions In COVID Relief Funds

Readers Pass

spending

Two New Jersey residents who allegedly obtained nearly $3.3 million in coronavirus relief fund payouts and bought properties in Texas are being charged by the U.S. Department of Justice (DOJ) as the government continues to crack down on federal Paycheck Protection Program (PPP) fraud.
Jean E. Rabbitt, 51, allegedly submitted fraudulent PPP applications for four of her businesses, with fraudulent payroll records and tax records. The Internal Revenue Service (IRS), however, told the DOJ that none of the tax records submitted for the funds were ever filed with the agency.
After receiving about $3.3 million, Rabbitt allegedly had Kevin Aguilar, also 51, create &#8220;sham payroll companies,&#8221; a <a href="https://www.fdicoig.gov/press-release/former-monmouth-county-residents-charged-33-million-paycheck-protection-program-fraud">press release</a> stated. Checks were written from businesses operated by Rabbitt to her other businesses, followed by the two allegedly transferring money to companies created by Aguilar. The then-Monmouth County, New Jersey, residents used the money to buy properties in Sherman, Texas, and &#8220;pay for personal expenses.&#8221;
Rabbitt is being charged with bank fraud, while the two are being charged with conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity, according to the DOJ.
&#8220;Rabbitt also made false and fraudulent statements and used falsified and fraudulent documents in support of applications for forgiveness of certain of the PPP loans,&#8221; the justice department said. &#8220;Based on Rabbitt’s false and fraudulent certifications and documents, the SBA paid more than $2 million dollars to lenders in connection with the fraudulent PPP loans Rabbitt obtained.&#8221;
Counts of &#8220;conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity carry a maximum sentence of 10 years in prison,&#8221; the press release stated. Each count of bank fraud carries a 30-year maximum prison sentence, accompanied by a $1 million fine.
The DOJ has continued to fight COVID relief fraud through its enforcement task force established in May 2021. The program has been rife with fraud, with one <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3906395">report</a> from August 2021 claiming 15% of loans given out were fraudulent. President Joe Biden announced Tuesday evening during his State of the Union address that the DOJ will appoint a chief prosecutor for coronavirus-related fraud.
&#8220;We&#8217;re gonna go after the criminals who stole billions of relief money meant for small business and millions of Americans,&#8221; the president said. The White House said the agents will &#8220;use state-of-the-art data analytics tools&#8221; to follow identity fraud and schemes in connection with PPP.
The U.S. Secret Service <a href="https://www.secretservice.gov/newsroom/releases/2021/12/us-secret-service-names-national-pandemic-fraud-recovery-coordinator">announced</a> in December 2021 it had appointed a senior official, Roy Dotson, to be the National Pandemic Fraud Recovery Coordinator. That same month, the agency also said investigations have led to the seizing of more than $1.2 billion in illegally obtained money and $2.3 billion being returned through Automated Clearing House reversals.
The DOJ declined The Daily Wire&#8217;s request for comment.
Related:
<ul>
<li><a href="https://www.dailywire.com/news/twin-brothers-ran-1m-covid-19-scheme-bought-camaro-and-crypto-doj">Twin Brothers Ran $1M COVID-19 Scheme, Bought Camaro And Crypto: DOJ</a></li>
<li><a href="https://www.dailywire.com/news/new-jersey-man-sentenced-to-prison-for-fraudulently-receiving-millions-in-covid-small-business-relief-funds">New Jersey Man Sentenced To Prison For Fraudulently Receiving Millions In Covid Small Business Relief Funds</a></li>
<li><a href="https://www.dailywire.com/news/labor-unions-took-37-million-of-ineligible-covid-relief-from-government">Labor Unions Took $37 Million Of Ineligible COVID Relief From Government</a></li>
</ul>
<div class="css-p8ym73">

COVID Relief

Two Charged With Running Alleged $3.3 Million ‘Fraudulent’ COVID Scheme

Twin brothers in Maryland are facing federal charges for allegedly obtaining payouts totaling more than $1 million in COVID-19 unemployment insurance benefits and loans with which they used to buy a 2020 Camaro and trade cryptocurrency, according to the U.S. Department of Justice (DOJ).
Jerry Phillips and Jaleel Philips, both 24, are the targets of a federal complaint filed in court. Both are being accused of wire fraud, while Jerry is also accused of aggravated identity theft. The brothers appeared Wednesday in the United States District Court of Greenbelt, Maryland. They face up to 20 years in federal prison if convicted for wire fraud.
The complaint was announced by U.S. Attorney Erek L. Barron for the District of Maryland, as well as officials in the Federal Deposit Insurance Corporation and Department of Labor, <a href="https://www.fdicoig.gov/press-release/twin-brothers-facing-federal-charges-allegedly-obtaining-over-1-million-covid-19-loans">according</a> to a DOJ press release.
&#8220;According to the criminal complaint, IP addresses linked to Jaleel and Jerry Phillips were used to submit fraudulent Paycheck Protection Program loan applications (PPP), Economic Injury Disaster loan applications (EIDL), and unemployment insurance claims resulting in $1 million in received funds,&#8221; the presser said. &#8220;As stated in the affidavit in support of the criminal complaint, the Phillips brothers allegedly created fictitious aliases, used the personal identifying information of real people, and used out of business or fake corporate entities to apply for EIDL and PPP loans, and unemployment benefits.&#8221;
The federal complaint also alleges that the Philips brothers made email and financial account aliases with state social security numbers, birth dates, and driver&#8217;s licenses. It is alleged that a car was purchased after illegally obtaining the PPP funds, as well as furniture and other items, and that the brothers moved money between bank accounts that were through the aliases&#8217; names.
Attorney General Merrick Garland <a href="https://www.justice.gov/opa/pr/attorney-general-announces-task-force-combat-covid-19-fraud">announced</a> a COVID-19 Fraud Enforcement Task Force in May 2021 to address fraud related to the pandemic and government handouts. A day before the Phillips brothers appeared in court, three men were <a href="https://www.fdicoig.gov/press-release/three-men-sentenced-27-million-covid-19-relief-fraud-scheme">sentenced</a> in North Carolina for a $2.7 million relief fund scheme, according to the DOJ.
There has been large-scale fraud involved with coronavirus-related assistance. In one of the most significant cases, two Florida men crafted a $35 million scheme and pleaded guilty in December. The men <a href="https://www.thecentersquare.com/florida/two-south-florida-men-plead-guilty-in-35m-covid-scam/article_1c543248-5f90-11ec-9a8e-0f8e8e5cff52.html">recruited</a> other loan applicants, resulting in more than two dozen being charged.
Nearly two years after the government approved aid totaling more than $6 trillion, the U.S. government is now tasked with accounting for where the funds ended up.
&#8220;Managing COVID-19 stimulus lending is the greatest overall challenge facing SBA, and it may likely continue to be for many years as the agency grapples with fraud in the programs, particularly in the COVID Economic Injury Disaster Loan (EIDL) Program, and the process of Paycheck Protection Program (PPP) loan forgiveness,&#8221; U.S. Small Business Administration (SBA) Inspector General Hannibal &#8220;Mike&#8221; Ware <a href="https://smallbusiness.house.gov/uploadedfiles/01-12-22_mr._ware_testimony.pdf">said</a> in testimony last month before the House&#8217;s committee on small business.
<div class="css-j7qwjs">
<div id="post-body-text">
<div class="e1nzmkc90 css-1s0j25g">
The Daily Wire’s first original film, Shut In, has made its cinematic debut, being met with rave reviews. The Daily Wire is building an alternative to the leftist entertainment industry, one gripping movie at a time. Join us in this mission and stream Shut In today by becoming a Daily Wire <a class="in-cell-link" href="https://www.dailywire.com/subscribe" target="_blank" rel="noopener">member</a>.
</div>
</div>
</div>

Twin Brothers Ran $1M COVID-19 Scheme, Bought Camaro And Crypto: DOJ

Hundreds of labor unions that were ineligible for the Paycheck Protection Program (PPP), a $953 billion business loan program through the federal government launched in March 2020, raked in $36.7 million in forgivable loans, according to a new report.
The <a href="https://www.freedomfoundation.com/wp-content/uploads/2022/02/Profiting-from-a-Pandemic-%E2%80%93-Union-Receipt-of-PPP-Loans.pdf">report</a> by the Freedom Foundation, a free-market think tank, indicated a high level of bureaucratic failure. Nonprofits registered as a 501(c)(3) were only eligible for PPP initially but unions still got funneled resources. As many as 226 forgivable loans were handed out.
&#8220;Disconcertingly, the apparently inappropriate PPP loans may have been granted due to fraudulent loan applications or other questionable conduct by applicants or the private lenders operating under the SBA’s delegated authority to approve loan applications,&#8221; the report stated, which was first <a href="https://freebeacon.com/latest-news/labor-unions-received-37-million-in-illegal-pandemic-relief/">obtained</a> by The Washington Free Beacon. &#8220;Appropriate federal authorities, including at least the SBA and the Department of Justice, should investigate the matter further and take appropriate actions to recover funds improperly paid and prosecute any fraudulent activity committed.&#8221;
The Small Business Administration (SBA) has waved away $790 billion in small business and nonprofit PPP loans that were tasked with showing how the money would be used to keep staff during COVID-19. People who knowingly submit a false statement to get an SBA loan could face a $250,000 fine and up to five years in prison. Moreover, if the loan is handed out through a federally insured institution, the fine could jump to $1 million and up to 30 years in prison.
There also appears to be some contradiction in the payouts. Unions who received loans were some of the most vocal in support of coronavirus lockdowns.
The Michigan Education Association raked in more than $6.4 million — the highest PPP loan for a union —and <a href="https://www.mlive.com/public-interest/2020/04/michigan-education-leaders-largely-support-extended-k-12-school-closure-due-to-coronavirus.html">supported</a> Michigan Democrat Gov. Gretchen Whitmer in April 2020 when she halted K-12 in-person learning. Similarly, the Memphis-Shelby County Education Association took in more than $107,000 and <a href="https://www.commercialappeal.com/story/news/education/2020/03/16/scs-parents-teacher-unions-support-school-closure-amid-virus-pandemic/5032862002/">advocated</a> for lockdowns in March 2020.
In July 2020, Trump administration officials notified SBA that labor unions unjustly received funding through PPP, documents obtained through the Freedom of Information Act reveal. In March 2021, with President Joe Biden now in office, unions were green lit for relief under the American Rescue Plan. Two months later, however, applications closed.
Nearly 80% of the unions who got PPP loans in 2020 were registered as a 501(c)(5), The Freedom Foundation found by tracking down financial records. The other 20% either do not have a public tax status or are ineligible, the Free Beacon noted.
&#8220;This breakdown in the PPP, administered by the Small Business Administration (SBA), has not been publicly documented previously,&#8221; the report also stated. &#8220;The ineligible loans diverted resources away from the purpose of the PPP, namely helping businesses keep employees on payroll.&#8221;
Related: <a href="https://www.dailywire.com/news/chicago-teachers-union-issues-list-of-demands-for-return-to-in-person-learning-that-must-be-met-by-monday">Chicago Teachers Union Issues List Of Demands For Return To In-Person Learning — That Must Be Met By Monday</a>
Send story tips to Gabe Kaminsky at <a href="mailto:gekaminsky@protonmail.com">gekaminsky@protonmail.com</a>. Follow him <a href="https://twitter.com/Gabe__Kaminsky">on Twitter.</a>

Unions

Labor Unions Took $37 Million Of Ineligible COVID Relief From Government

Labor Unions

A New Jersey man was sentenced to more than five years in prison on Tuesday for fraudulently taking $5.6 million in pandemic small business relief funds through the government’s Paycheck Protection Program. 
“A Sussex County, New Jersey, man was sentenced today to 64 months in prison for fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced,” <a href="https://www.justice.gov/usao-nj/pr/sussex-county-man-sentenced-64-months-prison-fraudulently-obtaining-56-million-loan-meant">according</a> to the Department of Justice. 
The sentences for money laundering and bank fraud were passed down by Judge Esther Salas at federal court in Newark to 31-year-old Azhar Sarwar Rana, who pleaded guilty to the charges. 
Rana took money from the PPP, a program designed to aid small businesses in response to the pandemic, by applying for a loan for his purported real estate company “Azhar Sarwar Rana LLC.”
The DOJ said, “New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.” 
Rana used the $5.6 million loan he received through PPP for many personal expenses, including payments to a luxury car dealership, investing millions in the stock market, and sending hundreds of thousands of dollars overseas to Pakistan. 
He was arrested nearly a year ago as he attempted to fly to Pakistan. Special agents with the FBI, IRS, Homeland Security, and the Social Security Administration were credited with aiding in the investigation.
According to the DOJ, the Paycheck Protection Program allowed, “qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.”
Last week another New Jersey man was also <a href="https://www.justice.gov/usao-nj/pr/middlesex-man-sentenced-30-months-prison-paycheck-protection-program-fraud-scheme-and">sentenced</a> for PPP fraud and “depositing a stolen and altered U.S. Treasury check.” Bernard Lopez, 40, was sentenced to 30 months in prison by Judge Peter G. Sheridan for bank fraud and stealing government funds. 
“Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC,” the DOJ noted. “The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.”
On top of that, Lopez also received about $481,502 in emergency relief funds from the government for a purported business he owned. Some of the money was then used for personal expenses. He will need to provide restitution for $137,000 and forfeiture of $481,502.
Fraud pertaining to pandemic relief funds seems to be somewhat widespread, as an Oregon dentist on Wednesday was charged with stealing almost $8 million in relief funds. 
“Salwan Adjaj, 43, a former dentist residing in West Linn, Oregon, has been charged with aggravated identity theft and wire fraud,” <a href="https://www.justice.gov/usao-or/pr/oregon-dentist-faces-federal-charges-stealing-nearly-8-million-covid-relief-program-funds">according</a> to the Attorney’s Office for the District of Oregon. “According to court documents, in and around March 2021, Adjaj allegedly submitted dozens of fraudulent loan applications to the Small Business Administration (SBA) in an attempt to obtain funds through the Economic Impact Disaster Loan (EIDL) program.”
Adjaj allegedly used “fictitious business entities” to perpetrate the fraud and obtain nearly $8 million in relief funds.

Money Pile $100 dollar bills

New Jersey Man Sentenced To Prison For Fraudulently Receiving Millions In Covid Small Business Relief Funds

Senator Rand Paul (R-KY) is spearheading an effort in Congress to hold the Small Business Administration (SBA) accountable for reportedly sending federal funds to Planned Parenthood through Paycheck Protection Program (PPP) loans.
“The Small Business Administration has been illegally giving taxpayer dollars to Planned Parenthood entities across America, and on Tuesday, I led the minority members of the Small Business Committee in standing united in opposition to allowing a vote on the SBA’s nominee for Deputy Administrator until the Administration takes action to recover the wrongfully acquired funds,” Sen. Paul said in a statement to The Daily Wire. “I think Democrats know it is illegal to give small business loans to the big business, that is Planned Parenthood, but they are completely in the tank for taxpayer funded abortions.”
In a joint statement, the Senate Small Business Committee (SBC) said, “The SBA has wrongfully approved nearly $100 million in taxpayer funded Paycheck Protection Program (PPP) loans to Planned Parenthood branches across the country. On June 30th alone, SBA approved four PPP loans to Planned Parenthood affiliates despite a determination from the last Administration that these entities were ineligible for the program. We will not allow a vote on this nominee until the SBA takes action to recover the wrongfully acquired PPP funds by Planned Parenthood entities.”
&#8220;We will not allow a vote on SBA’s nominee for Deputy Administrator until the SBA takes action to recover the wrongfully acquired PPP funds by Planned Parenthood entities,&#8221; the GOP SBC tweeted.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
We will not allow a vote on SBA’s nominee for Deputy Administrator until the SBA takes action to recover the wrongfully acquired PPP funds by Planned Parenthood entities. <a href="https://t.co/mHeBiL0OKy">pic.twitter.com/mHeBiL0OKy</a>
&mdash; Senate Small Biz (@SmallBizCmteGOP) <a href="https://twitter.com/SmallBizCmteGOP/status/1440039591017287687?ref_src=twsrc%5Etfw">September 20, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
With the GOP pushing to derail Dilawar Syed’s nomination to the Small Business Administration as a consequence, Massachusetts Sen. Ed Markey (D-MA) <a href="https://mobile.twitter.com/senmarkey/status/1440335385368821765?s=21">accused</a> Republicans of “playing politics.”
“Senate Republicans continue to play politics with the recovery of our nation’s small businesses and are refusing to show up and do their jobs. I urge my colleagues to put the recovery over politics and vote on [Dilawar Syed’s] nomination to the Small Businesses Administration,” he tweeted.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Senate Republicans continue to play politics with the recovery of our nation’s small businesses and are refusing to show up and do their jobs. I urge my colleagues to put the recovery over politics and vote on <a href="https://twitter.com/dilawar?ref_src=twsrc%5Etfw">@Dilawar</a> Syed’s nomination to the Small Businesses Administration.
&mdash; Ed Markey (@SenMarkey) <a href="https://twitter.com/SenMarkey/status/1440335385368821765?ref_src=twsrc%5Etfw">September 21, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
However, according to Matt Whitlock, Markey was guilty of “not showing up.”
“This ‘shaming people for not showing up’ only works if you show up yourself,” Whitlock tweeted. “Markey is attacking Republicans for not attending a hearing … that he didn’t even attend.”
“What a joke,” he added.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
This “shaming people for not showing up” only works if you show up yourself. 
Markey is attacking Republicans for not attending a hearing … that he didn’t even attend. 
What a joke. <a href="https://t.co/M9vGx9vewe">https://t.co/M9vGx9vewe</a>
&mdash; Matt Whitlock (@mattdizwhitlock) <a href="https://twitter.com/mattdizwhitlock/status/1440340770033074187?ref_src=twsrc%5Etfw">September 21, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Ironically, while Markey accused Republicans of playing politics and not showing up, it was Markey who <a href="https://mobile.twitter.com/mattdizwhitlock/status/1440340514088243208">failed to show up</a> to the vote. Democrats who were so concerned with the nomination did not have a quorum.
According to Sen. Paul’s office, a timeline of sixteen loans to Planned Parenthood include $10,000,000 to Planned Parenthood of Greater New York on May 14, 2021, $3,548,987 to Planned Parenthood of Southern New England on February 12, 2021, and $1,900,000 to Planned Parenthood of Greater Texas on April 15, 2021.
Dilawar Syed was nominated by President Joe Biden to be the deputy administrator of the Small Business Administration in March, and his nomination is currently pending before the Senate Small Business and Entrepreneurship Committee.

Rand Paul

Rand Paul Pushing To Hold Small Business Association Accountable For ‘Illegally Giving Taxpayer Dollars’ To Planned Parenthood

Planned Parenthood

Menu