Three accused of cocaine trafficking in Racine received PPP loans in 2020 | Crime and courts


According to Federalpay.org, a non-government-affiliated public resource site that tracked PPP loan releases, “the total PPP loan a qualifying business or individual can receive is based on 2.5 times their average monthly salary expenses in 2019, capped at $ 100,000 per year per employee.

Concerns about the abuse of the PPP program have existed since the idea was proposed. The federal government was working to prevent businesses from shutting down completely, which led to banks and other lenders giving money to fraudulent businesses.

The Justice Department reported on Wednesday that “since the start of the PPP, lawyers in the Fraud Section have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section also seized more than $ 65 million in cash proceeds from fraudulently obtained PPP funds, as well as numerous real estate and luxury items purchased with these products. “

In a telephone interview Thursday, Rachel Apple, spokesperson for the Wisconsin District Office of the US Small Business Administration, said: “The Department of Justice has already prosecuted a number of cases for people who have used P3 funds… purposes) rather than for commercial purposes.

She added in an email, “It has been a long-standing SBA policy not to comment on individual borrowers. In this, the PPP was offered through lenders with delegated authority and the SBA guaranteed the loans made by these lenders… However, the lender’s approval does not reflect a determination by the SBA that the borrower is eligible for a PPP loan or is entitled to a loan forgiveness. The SBA takes fraud seriously and all complaints are investigated and prosecuted with full legality.

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