September 27, 2022

Investigation Finds That 15 Inmates Used PPP Loans to Bond Out of Jail


A number of individuals in Illinois are again behind bars after police found they used PPP cash to bond out of jail.

An investigation discovered that 25 individuals have been arrested throughout a sting operation focusing on those that fraudulently obtained Paycheck Safety Program funds with out truly proudly owning a enterprise in Joliet. Of these 25, police say that 15 utilized for and used the funds solely to bail out of jail.

The inmates used jail telephones to full the PPP mortgage course of whereas nonetheless incarcerated, receiving wherever from $19,000 to $20,000. As soon as the cash, which often solely took days to obtain, hit the designated financial institution accounts, the inmates rapidly posted bail. Per PPP mortgage tips, recipients charged with felonies usually are not eligible to obtain the funds. No enterprise licenses have been discovered for any of the candidates.

“Some of the targets bonded out on their felony cases days after receiving their fraudulent PPP loan,” Joliet Police Chief William Evans mentioned throughout Wednesday’s information convention.

Financial institution data confirmed that the cash was obtained and used to pay bonds.

The Paycheck Safety Program was launched as a treatment for enterprise homeowners struggling throughout the COVID-19 pandemic. In response to enterprise closures and entrepreneurs working to keep afloat, many functions have been authorized with little to no evaluate course of, which made it extraordinarily accessible for fraudsters to get PPP loans. In lots of instances, the loans have been forgiven. Actually, the fraud has run so rampant that PPP loans have been added to a listing of authorities applications that have been at excessive danger for fraud.

The defendants are all going through new costs of wire fraud, theft, and mortgage fraud.