As the federal government intensifies its prosecution campaign of Covid relief fraud, potential scammers have taken to social media to express concern and frustration. The exploitation of government financial programs, such as the Paycheck Protection Program (PPP), has been widespread and has led to the prosecution of 500 defendants by the Department of Justice (DOJ) as of March 2022.
Some social media users have publicly shared their experiences of being served by authorities for PPP fraud. Tik Tok user J_Kyng_Enterprise, a self-proclaimed convicted felon, posted a series of videos admitting to receiving a PPP loan in 2019 and expressing regret for his actions. “They got me, man,” he said. “I knew what I was doing was wrong…it’s not worth it.”
Others have also been served with warrants or indicted for PPP fraud. In October, 42 members and associates of the California white supremacist gang SFV Peckerwoods were apprehended for various crimes, including COVID-19 benefits and loan fraud. Allstar Health Providers Inc. was also ordered to pay $399,990 in restitution for fraudulently obtaining and retaining multiple PPP loans.
As the DOJ ramps up its efforts to prosecute PPP fraud, false rumors of a “PPP loan warrant list” have circulated on social media. Some outlets claimed that the list was dropped for 2024 and urged viewers to check if their name was on it. However, this list does not actually exist. The “PPP warrant list” being referenced is actually Pro Publica’s PPP Tracker, which simply lists all businesses that were approved for the loan and does not mention any arrest warrants.
♬ original sound – j_kyng_enterprise
According to reports, the government distributed $793 billion in PPP funding to over 968,000 organizations and forgave $763 billion of the loans. However, it is estimated that at least 10% of this money went to fraudulent activities, totaling around $80 billion. As of April, the DOJ had recovered or seized $1.4 billion in stolen funds.
DO YOU KNOW someone on the list? Tell them to run ????♂️ them ppl are coming #grindfacetv
TT/ thereal.Jamessb pic.twitter.com/wTsInJEokC— GrindFace TV (Entertainment) (@grindfacetv) October 24, 2024
The DOJ continues to crack down on COVID-19 relief fraud, potential and alleged scammers have taken to social media to air their grievances and warn others against committing fraudulent acts. With millions of dollars being distributed through these programs, it is important for the government to remain vigilant in prosecuting those who take advantage of them.