The Paycheck Protection Program (PPP) aims to help small businesses provide payroll insurance for their employees. It ensures the welfare of both the company and employees in the business sector.
However, the PPP also holds the potential of being abused. As such, the United States made the PPP Detective regulate fraudulent loans.
Let’s find out how the PPP Detective protects the interest of the public and the government.
What is the PPP Detective?
The PPP (Paycheck Protection Program) Detective is a website that helps the United States government against fraud. It involves the local citizens identifying fraudulent loans across the country.
The United States government created the PPP to allocate funds in line with its COVID-19 relief program. As the pandemic hit the country, businesses and other establishments faced unforeseen circumstances.
Employees vacated their offices and transferred into a work-from-home setup. Companies need to adjust in facing the new normal as people lose their jobs.
As such, PPP is the solution in addressing the needs in the corporate world. However, as much as the government wanted to reach out, some fraudulent loans came out. They made the PPP Detective for this reason.
It acts as a mediator in identifying bogus loans and protecting the government’s interest. The widespread report of fraud across the nation pushed the PPP Detective to solicit awareness from local citizens.
By doing so, early detection and prompt apprehension of such malicious acts will be caught. Suspicious loans are monitored and should be reported. The people’s participation in monitoring business centers is key to finding whether the loan is fraud or not.
The Small Business Administration (SBA) is tasked to offer support for small businesses in the US. As such, the PPP Detective collaborated with the SBA to see public loan details. PPP Detective uses a third-party database to screen fraudulent loans.
Once fraud is detected, it triggers a series of notifications to other users and flags the loan. Unless a thorough verification is confirmed, the flagged loan remains a constraint.
The PPP Detective easily tracks down illegitimate loans using the SBA’s data. It utilizes Google Maps and Google Street View as third-party data sources to verify the existence of a loan.
Should a fraudulent review be detected, it automatically flags down the loan. The website will post updates about frauds and other matters about monitoring illegal loans.
The PPP Detective acts as a guide in protecting the public and the government’s interests.
PPP Fraud Loan
A PPD fraud loan happens when a company or entrepreneur asks for PPP assistance using false information. This federal program helps businesses acquire aid in sustaining their needs.
However, others use PPP loans to obtain resources for illegal funding. They do it by providing false information to commercial banks. This makes a PPP fraud loan acquisition.
PPP Fraud Loan Investigation
The recipient of a PPP loan should abide by the terms and conditions provided. Should there be any inconsistencies, it alerts a PPP fraud loan investigation. The investigation will evaluate the need for penalties and other reprimanding acts against the violator.
An investigation takes place when:
- Using a piece of false information in applying for a PPP loan.
- Getting PPP loan approval from different lenders.
- Using PPP funds illegally.
- PPP loan forgiveness false statement submission.
Why Do We Need the PPP Detective?
The PPP Detective acts like a sheriff who monitors the processing of loans. It helps the government identify illegal loans acquired using the PPP. As such, encouraging the public to help monitor fraudulent loans allows prompt action by the government.
The financial assistance given by the PPP must help small businesses and entrepreneurs. If placed in the wrong hands, wasting resources other than its purpose defeats its motive.
Instead of giving it away to rightful recipients, it will be wasted on other things. Thus, depleting the supply for other important services. But, using the public’s participation can help monitor and regulate these acts.
The PPD Detective helps in identifying fraudulent acts of loan acquisition. These unlawful actions are subjected to civil and criminal liabilities.
Here are some of the penalties that will be imposed if proven with fraud loan:
Wire Fraud (18 U.S.C. Section 1343)
This happens when someone uses the phone or internet in making false statements to acquire a loan. The fine depends on the amount of cash illegally acquired with up to 20 years imprisonment.
Bank Fraud (18 U.S.C. Section 1344)
This happens when someone gives false statements personally or a written affidavit to a financial institution. The charges depend on the cash acquired and up to 30 years of imprisonment.
Conspiracy to Commit Fraud (18 U.S.C. Section 1349)
This is an act of conspiring with someone to avail of a fraud loan. The penalties applied are the same as with the principal violator.
Is the PPP Detective Legit?
How legit is the PPP Detective? A software engineer named Brian Hamachek created the website after finding irregularities in the PPP loan list near his place. He claimed that other companies use fake accounts in processing their PPP loans.
It aims to alert the SBA against fraudulent loans. But did it effectively do its job?
Although the PPP Detective can see through a series of irregularities, it’s still in contest whether it’s effective or not. Right now, people are gauging its effectiveness in detecting fraud loans.
As a new developing website, PPP Detective is trying its best to prove its worth. We cannot say that Brian Hamachek is a scam. However, it opens the question of whether his website is effective or not.
The PPP Detective offers a great deal in detecting illegal loan procurement. It alerts other databases once a suspicious loan is detected. As such, it’s a big help for the government in tracking down these illegal loans.
However, the question of proof in making this site effective is still unclear to some. But, its purpose would benefit the government and the public’s interest.