The U.S. Justice Department says seven people have been arrested in connection with a $7.5 million fraudulent scheme to obtain millions of dollars through the Paycheck Protection Program, designed to help businesses keep workers employed during the COVID-19 pandemic.
Three of the seven people charged were from Massachusetts, two from Georgia and one each from Tennessee and Florida.
PPP LOAN FRAUD SCHEMES RAN WILD AS GOVERNMENT DOLED OUT BILLIONS; AT LEAST 120 CHARGED
In a news release, prosecutors say the individuals submitted dozens of fraudulent applications to Paycheck Protection Program lenders. In addition to fraudulent loan applications, some of those charged inflated the number of people that were eligible for the program and some paid and received kickbacks. All the suspects have appeared in federal court and have been released.
SEN. DURBIN SAYS HIS SON WAS A VICTIM OF PPP FRAUD, CALLS FOR MORE OVERSIGHT OF FEDERAL COVID-19 FUNDS
One of the defendants from Massachusetts…
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