Sens. Paul and Ernst Launch Large-Scale Investigation Into Pandemic Loan Fraud

Sens. Joni Ernst and Rand Paul are starting a large scale investigation into pandemic loan fraud of over $5.4 Billion. This is in response to reports that the Biden Administration is ending the COVID-19 emergency.

Paul, R.Ky. and Ernst, R.Iowa, wrote to the Inspector General for the Small Business Administration requesting an assessment into the “extent” Paycheck Protection Program (PPP) fraud

The inquiry comes after the Pandemic Response Accountability Committee sounded the alarm following a review that shows 5.4 billion in taxpayer funds were dispensed to “fraudsters.

“On January 30, 2023, the Pandemic Response Accountability Committee (PRAC) released a fraud alert detailing widespread fraud of the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL),” Rand and Ernst wrote in the first Fox News Digital letter.

“Specifically, PRAC reviewed over 33 million applications and discovered 221,427 applications used fraudulent social security numbers.,” They wrote.

“Of those, 69,323 applications were issued EIDL and PPP loans, totaling over $5.4 billion in funds dispensed to fraudsters,” They were also added.

Paul and Ernst also requested a review. “nearly 70,000 PPP loans” An overview of the actions taken in the Small Business Administration’s capacity, as well as its conclusions. “automated and manual checks.”

This investigation follows the announcement by the Biden administration that it will end two emergencies related the COVID-19 pandemic of May 11, 2023

In a statement, the Office of Management and Budget stated that Biden would extend both emergency until May 11, after which they will be canceled.

The senator’s investigation comes a week after the Government Accountability Office announced that as much as $45 billion were lost to fraudulent claims.

As Fox News reported:

To cope with the massive job losses caused by the pandemic, the government spent $878 million on unemployment insurance between April 2020 – September 2022.

Based on an analysis of the unemployment system in the two most recent years of the pandemic, the estimates of how much money was used to fund fraudulent claims were made.

Although $4.3 billion was confirmed by state workforce agencies to be fraudulent unemployment insurance payments, the report does not reflect ongoing investigations into fraudulent payments totalling $45 billion.

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