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

Paycheck Protection Program (PPP)

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

Fraud

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.

COVID

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>
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COVID Relief

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

Coronavirus Relief

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.
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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>
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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

Small Business Administration

An online lending platform that processed hundreds of thousands of Paycheck Protection Program loans during the first round of coronavirus relief last year gave away millions to non-existent farms supposedly along the Jersey shore.
An <a href="https://www.propublica.org/article/ppp-farms?utm_source=twitter&amp;utm_medium=social#1066696">investigation</a> from ProPublica found that the lending platform, Kabbage, gave 378 small loans to fake business entities for a total of $7 million. Each of the fake businesses were “structured as single-person operations and received close to the largest loan for which such micro-businesses were eligible,” the outlet reported. Further, some of the fake businesses had ridiculous names:
<blockquote>As the first round of the federal government’s relief program for small businesses wound down last summer, “<a href="https://projects.propublica.org/coronavirus/bailouts/loans/ritter-wheat-club-4283198009">Ritter Wheat Club</a>” and “<a href="https://projects.propublica.org/coronavirus/bailouts/loans/deely-nuts-1117028201">Deely Nuts</a>,” ostensibly a wheat farm and a tree nut farm, each got $20,833, the maximum amount available for sole proprietorships. “<a href="https://projects.propublica.org/coronavirus/bailouts/loans/tomato-cramber-9998268100">Tomato Cramber</a>,” up the coast in Brielle, got $12,739, while “<a href="https://projects.propublica.org/coronavirus/bailouts/loans/seaweed-bleiman-4754188003">Seaweed Bleiman</a>” in Manahawkin got $19,957.</blockquote>
As ProPublica reported, none of those businesses appear in New Jersey’s business records. Even stranger, people who live at the addresses listed for the companies didn’t appear to be aware of any loans. One of the businesses, a fake cattle ranch called “Beefy King,” was registered to the home address of Long Beach Township Mayor Joe Mancini, who seemed surprised about the registration when he spoke to ProPublica.
“There’s no farming here: We’re a sandbar, for Christ’s sake,” Mancini told the outlet over the phone. He also said he had no cows, only three dogs.
New Jersey beaches aren’t the only odd locations for alleged farms that received loans from Kabbage. ProPublica also found loans going to fake potato fields in Palm Beach, Florida, and fake orange groves in Minnesota.
“The Kabbage pattern is only one slice of a sprawling fraud problem that has suffused the Paycheck Protection Program from its creation in March 2020 as an attempt to keep small businesses on life support while they were forced to shut down. With speed as its strongest imperative, the effort run by the federal Small Business Administration initially lacked even the most basic safeguards to prevent opportunists from submitting fabricated documentation, government watchdogs have said,” ProPublica reported. “ While that may have allowed millions of businesses to keep their doors open, it has also required a massive cleanup operation on the backend. The SBA’s inspector general <a href="https://www.sba.gov/sites/default/files/2021-01/SBA%20OIG%20Report-21-07.pdf">estimated</a> in January that the agency approved loans for 55,000 potentially ineligible businesses and that 43,000 obtained more money than their reported payrolls would justify. The Department of Justice, relying on special agents from across the government to investigate, has brought charges against <a href="https://www.arnoldporter.com/en/general/cares-act-fraud-tracker">hundreds of individuals</a> accused of gaming pandemic response programs.”
As The Daily Wire previously reported, some of the people who fraudulently obtained PPP loans used the money to buy luxury items, like cars and homes. A D.C. pastor <a href="https://www.dailywire.com/news/dc-pastor-allegedly-used-coronavirus-relief-funds-to-buy-39-cars-and-a-house">used</a> coronavirus relief funds to buy 39 cars, including a Tesla, and a house. As The Daily Wire <a href="https://www.dailywire.com/news/some-ppp-loans-were-used-to-buy-rolexes-rolls-royces-report-finds">reported</a> in September, others used funds to purchase Rolex watches, Rolls Royces, and other luxury items. The Daily Wire also <a href="https://www.dailywire.com/news/fraud-and-scams-coming-to-light-months-after-first-round-of-ppp-loans-expired">reported</a> in late December on numerous other frauds and scams related to PPP loans.

Grazing cows

Online Lending Platform Gave Millions In PPP Loans To Fake Farms With Ludicrous Names

Prominent diversity consulting firms received millions in taxpayer-backed, forgivable Paycheck Protection Program (PPP) loans, despite the industry’s boom.  
Diversity, equity, and inclusion (DEI) firms that received bailouts include Pollyanna, which has sent the nation’s most exclusive private schools into an <a href="https://www.city-journal.org/nyc-prep-school-admins-adopt-questionable-anti-racism-curriculum?wallit_nosession=1">uproar</a>, and the Kaleidoscope Group, which pushed wokeness at Coca-Cola, a Daily Wire review of federal records found.
PPP loans were intended to offset the losses of businesses that could not fully operate during the pandemic. The pandemic <a href="https://www.federalreserve.gov/econres/feds/files/2020089r1pap.pdf">resulted</a> in the permanent closure of “likely below 200,000” establishments, many of whom did not <a href="https://www.foxbusiness.com/money/percent-businesses-ppp-loans">receive</a> PPP loans. 
DEI firms <a href="https://www.economist.com/business/2020/11/26/social-unrest-has-fuelled-a-boom-for-the-diversity-industry">profited</a> greatly from the anti-racism movement that occurred simultaneously with the pandemic. Following the death of George Floyd, companies and educational institutions invested heavily in diversity training and consultants. 
Among the recipients of PPP funds are firms who were busy throughout the pandemic providing racial training to government agencies, corporations, and schools. Some of the training is based in critical race theory, the ideology that says America is inherently racist. 
The Kaleidoscope Group, which has provided DEI consulting to some of the most notably “woke” corporations such as Coca-Cola and Deloitte, collected <a href="https://www.federalpay.org/paycheck-protection-program/the-kaleidoscope-group-llc-chicago-il">$498,240</a> in PPP loans. The firm also counts as <a href="https://kgdiversity.com/clients/">clients</a> large corporations such as Northrop Grumman, Discover, McDonald’s, Progressive, and Comcast. 
Coca-Cola’s broader DEI <a href="https://www.dailywire.com/news/backlash-hits-coca-cola-after-accusations-of-anti-white-agenda">campaign</a> included hosting online anti-racism training for employees. One purported whistleblower released a portion of a training telling people to “try to be less white” — although Coca-Cola company claims that that specific training was not part of its direct learning curriculum and was merely accessible through LinkedIn Learning.
Deloitte has instituted similar “anti-racism” training and told employees that “<a href="https://www.dailywire.com/news/deloitte-tells-employees-microaggressions-are-considered-a-punishable-offense">microaggressions</a>” are considered a punishable offense. 
Newark-based BCT Partners received <a href="https://www.federalpay.org/paycheck-protection-program/bct-partners-llc-newark-nj">$910,540</a> in PPP loans, according to FederalPay.org. Far from struggling, it is currently hiring for nine positions, according to its website.
BCT Partners is <a href="https://www.usaspending.gov/search/?hash=afe604ff9254234f9e31c8c2eb553f7f">contracted</a> with the U.S. Department of Homeland Security (DHS) and the National Science Foundation (NSF) to provide “racial equity” and “unconscious bias” workshops. In September 2020, the NSF spent $75,000 on a year-long contract with BCT Partners for a “racial equity initiative.” DHS signed a three-year-long contract with the firm for $42,000 to provide an “unconscious bias workshop.”
The Mid-Atlantic Equity Consortium (MAEC), meanwhile, has raked in cash from public schools. 
MAEC landed a <a href="https://freebeacon.com/campus/md-school-district-to-spend-over-450000-on-anti-racist-audit/">$454,680</a> contract with Maryland’s Montgomery County Public Schools to conduct an “anti-racist” audit during the coronavirus pandemic. A <a href="https://freebeacon.com/campus/prominent-equity-consulting-firm-funded-entirely-by-taxpayer-dollars/">review</a> of the MAEC’s financial records found that the group raked in $2 million solely in government grants between mid-2018 and mid-2019. 
MAEC collected <a href="https://www.federalpay.org/paycheck-protection-program/mid-atlantic-equity-consortium-inc-bethesda-md">$202,229</a> in PPP loans, according to FederalPay.org. A spokeswoman for MAEC said the firm&#8217;s application was “consistent with the program requirements” and invoked former President Donald Trump:
<blockquote>The PPP was created and administered by the Trump Administration. Our application was consistent with the program requirements. The application and the assistance it provided the organization were approved by the lender based upon the Trump Administration’s guidelines. The PPP loan we received supported work from May through October 2020. The MCPS contract work began in January 2021.</blockquote>
Pollyanna found a steady revenue stream in the elite private schools favored by wealthy liberals. The firm has worked with New York City’s Dalton School, Brearley School, and Bamford School, and with Harvard-Westlake in Los Angeles as well as private schools in Atlanta, Chicago, St. Louis, Charlotte, and Providence, according to the firm’s <a href="https://www.linkedin.com/company/pollyanna-inc">LinkedIn</a>. 
Pollyanna collected <a href="https://www.federalpay.org/paycheck-protection-program/pollyanna-inc-new-york-ny">$21,687</a> in PPP loans. 
VisionSpring was hired by Cigna, one of the nation’s largest health insurance providers, to provide DEI training. A report from <a href="https://www.washingtonexaminer.com/news/cigna-critical-race-theory-training-dont-say-brown-bag-lunch-mindful-religious-privilege">The Washington Examiner</a> alleged that Cigna employees were “asked not to consider white men in hiring decisions.” The health provider’s DEI training discouraged employees from using words such as “brown bag lunch” or “mother/father,” and to be mindful of “religious privilege.”
VisionSpring secured two PPP loans, each for <a href="https://www.federalpay.org/paycheck-protection-program/visionspring-inc-natick-ma">$20,600</a>. The first loan was collected in April 2020, the second in February of 2021. 
The Disruptive Equity Education Project (DEEP) is a for-profit firm that charges <a href="https://disruptive-equity-education-project-deep.teachable.com/p/the-reckoning31111">$250</a> for a participant, or $4,000 to learn how to train others. It received a <a href="https://nypost.com/2019/05/25/teachers-allegedly-told-to-treat-black-students-as-victims-punish-whites/">$175,000</a> contract from New York City’s public schools in 2019; a city equity official said that equity training would not stop because of coronavirus.
DEEP received <a href="https://www.federalpay.org/paycheck-protection-program/disruptive-equity-education-project-llc-liverpool-ny">$54,638</a> in PPP funds. It is currently looking to hire five people, according to its <a href="https://digdeepforequity.org/join-our-team/">website</a>.
A bevy of other DEI firms received PPP loans totaling almost three million dollars. 
<table>
<tbody>
<tr>
<th>Firm</th>
<th>PPP $</th>
<th>EIDL $</th>
</tr>
<tr style="background: #e8e3e3;">
<td>BCT Partners</td>
<td style="text-align: right;">$910,540</td>
<td style="text-align: right;">$150,000</td>
</tr>
<tr>
<td>Kaleidoscope Group LLC</td>
<td style="text-align: right;">$498,240</td>
<td style="text-align: right;">$150,000</td>
</tr>
<tr style="background: #e8e3e3;">
<td>MAEC</td>
<td style="text-align: right;">$202,229</td>
<td></td>
</tr>
<tr>
<td>Disruptive Equity Education Project (DEEP)</td>
<td style="text-align: right;">$54,638</td>
<td></td>
</tr>
<tr style="background: #e8e3e3;">
<td>VisionSpring</td>
<td style="text-align: right;">$52,200</td>
<td></td>
</tr>
<tr>
<td>Pollyanna</td>
<td style="text-align: right;">$21,687</td>
<td style="text-align: right;">$4,000</td>
</tr>
<tr>
<td colspan="3"></td>
</tr>
<tr style="background: #e8e3e3;">
<td>National Equity Project</td>
<td style="text-align: right;">$623,900</td>
<td></td>
</tr>
<tr>
<td>Crossroads Anti-Racism Organizing &amp; Training</td>
<td style="text-align: right;">$167,702</td>
<td></td>
</tr>
<tr style="background: #e8e3e3;">
<td>National Alliance for Partnerships in Equity</td>
<td style="text-align: right;">$123,852</td>
<td></td>
</tr>
<tr>
<td>Recenter Race &amp; Equity in Education</td>
<td style="text-align: right;">$115,325</td>
<td></td>
</tr>
<tr style="background: #e8e3e3;">
<td>Equity in Education Coalition</td>
<td style="text-align: right;">$49,474</td>
<td></td>
</tr>
<tr>
<td>Fellowship for Race and Equity in Education</td>
<td style="text-align: right;">$43,600</td>
<td></td>
</tr>
<tr style="background: #e8e3e3;">
<td>Center for Racial Equity in Education</td>
<td style="text-align: right;">$37,200</td>
<td></td>
</tr>
<tr>
<td>Center for Culturally Responsive Teaching and Learning</td>
<td style="text-align: right;">$26,665</td>
<td></td>
</tr>
<tr>
<td colspan="3"></td>
</tr>
<tr>
<th>Total</th>
<th style="text-align: right;">$2,927,252</th>
<th style="text-align: right;">$304,000</th>
</tr>
</tbody>
</table>
Congress created the <a href="https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/first-draw-ppp-loan">PPP loan program</a> &#8220;to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.&#8221;
Applicants to PPP loans were required to <a href="https://www.sba.gov/sites/default/files/2021-03/BorrowerApplication2483ARPrevisions%20%28final%203-18-21%29-508.pdf">certify</a> that &#8220;Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.&#8221;
Some of the jobs purportedly “retained” by PPP loans were apparently for part-time jobs
According to Pollyanna’s <a href="https://projects.propublica.org/nonprofits/display_990/473588638/02_2021_prefixes_47-47%2F473588638_201912_990_2021021717709394">tax form</a>, the firm had one employee in 2019, though its PPP application claimed that a loan would retain four jobs. A Pollyanna spokeswoman told The Daily Wire that the PPP application “properly reflected the company’s number of employees — including part-time employees.”
BCT Partners, DEEP, The Kaleidoscope Group, and VisionSpring did not respond to The Daily Wire’s request for comment.

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Racial Consultants Took PPP Loans Intended For Struggling Businesses Despite Industry’s Boom

Critical Race Theory

Racism

A Massachusetts man accused of fraudulently applying for hundreds of thousands of dollars in coronavirus relief bills and then faking suicide to avoid prosecution has agreed to plead guilty to some of the charges against him.
The Associated Press <a href="https://apnews.com/article/coronavirus-pandemic-business-health-1dbf927da84e6154539283b26c15abc7">reported</a> that David Staveley, 53, “will plead guilty to conspiracy to commit bank fraud and failure to appear in court charges, according to documents filed Thursday in federal court in Rhode Island.” In exchange for pleading guilty, federal prosecutors will dismiss several charges against him, including bank fraud, making false statements, and aggravated identity theft.
As the AP reported, Staveley applied for nearly $440,000 in loans under the Paycheck Protection Program (PPP), a program intended to provide funds to businesses struggling due to government-imposed coronavirus restrictions. Staveley claimed in his applications that he had “needed to pay dozens of employees at two restaurants he owned in Rhode Island and a third he owned in Massachusetts,” the outlet reported. Two of those restaurants, however, weren’t even open before the pandemic hit, so they had no employees. Staveley also didn’t have an ownership stake in the third restaurant, prosecutors said when the charges were brought against him last year.
More from the AP:
<blockquote>Staveley and another man, David Butziger, 52, of Warwick, were the first people in the nation charged with making phony applications for loans under the Paycheck Protection Program, officials said at the time.
Butziger pleaded guilty to conspiracy to commit bank fraud in September and faces sentencing in June.
Staveley initially had pleaded not guilty and was released to home confinement, but last May 26, he removed his GPS monitor and disappeared, according to the U.S. Marshals Service.
His vehicle was found near a beach in Quincy, Massachusetts. The vehicle was unlocked with the key in the ignition, and his wallet, credit cards, driver’s license and a suicide note were found in the car, authorities said.
No evidence was found that he had taken his own life, and marshals concluded that Staveley faked his death to avoid prosecution.</blockquote>
Staveley fled to Tennessee to avoid prosecution, the AP reported. He then traveled to Georgia, where he is accused of using a fake identity and driving a vehicle with stolen plates. He was finally arrested last July in Alpharetta, Georgia. Authorities discovered “multiple forms of identification bearing different names” the AP reported.
Others also have been charged with defrauding the PPP, including a D.C. pastor who used coronavirus relief funds to buy 39 cars, including a Tesla, and a house, The Daily Wire previously <a href="https://www.dailywire.com/news/dc-pastor-allegedly-used-coronavirus-relief-funds-to-buy-39-cars-and-a-house">reported</a>. Rudolph Brooks Jr. was charged with federal wire fraud for falsifying documents relating to his application for more than $1 million in funds.
Brooks is not the only person who defrauded the coronavirus relief programs. As The Daily Wire <a href="https://www.dailywire.com/news/some-ppp-loans-were-used-to-buy-rolexes-rolls-royces-report-finds">reported</a> in September, others used funds to purchase Rolex watches, Rolls Royces, and other luxury items. The Daily Wire also <a href="https://www.dailywire.com/news/fraud-and-scams-coming-to-light-months-after-first-round-of-ppp-loans-expired">reported</a> in late December on numerous other frauds and scams related to PPP loans.

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