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Congressional investigation finds over $1B in suspected COVID-19 aid fraud

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LOS ANGELES - Billions of dollars in loans intended to help small businesses amid the COVID-19 pandemic may have been diverted to fraud, waste, and abuse, according to a preliminary staff report released Thursday by the House Select Subcommittee on the Coronavirus Crisis on the Paycheck Protection Program (PPP).The investigation found that more than $1 billion in loans went to companies that received more than one.

According to the findings, 10,856 loans were identified in which the borrower received multiple PPP loans, but only 65 would be “subject to additional scrutiny based on the Administration’s stated plans to audit loans over $2 million.”The rules of the PPP, which was part of the $2 trillion CARES Act, prohibited companies from.

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