The U.S PPP Loan system meant to help struggling businesses in America has been the sole focus of fraud to the extent not many people have seen before. Initially designed to help cover paychecks and other expenses for businesses, the system has since become sort of a payday for those looking for a government-funded get rich quick scheme.
Though acting swiftly to catch fraudsters it is unclear if officials in America intend to make any changes to the PPP system.
Though the problem is that the American government is moving quick and eventually figures out who is being honest and who isn’t. According to reports, a California man is the latest person to be caught in a PPP fraud scandal to the tune of nearly of $5m.
“The false information allegedly included the number of employees to whom the companies paid wages, altered bank account records with inflated balances, and fictitious quarterly federal tax return forms,” prosecutors said in a statement. “Qadiri allegedly also used someone else’s name, Social Security number and signature to fraudulently apply for one of the loans.”
Qadiri Mustafa has been charged with numerous counts of fraud; bank fraud, wire fraud, aggravated identity theft, and a host of other charges. Mustafa is expected go to on trial in June and is currently being held on more than $100,000 bond.
Mustafa had notoriously claimed to operate All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc., and Ad Blot, Inc. none of which are actually in operation anywhere in America.