The Justice Department has opened an investigation into companies that applied for emergency loans under the Paycheck Protection Program, and businesses that provided misleading information could face jail sentences, experts say.“Whenever there’s a trillion dollars out on the street that quickly, the fraudsters are going to come out of the woodwork in an attempt to get access to that money,” Assistant Attorney General Brian Benczkowski told Bloomberg News Thursday.
Small-business owners who have applied for or received PPP funds should “definitely take it as cause for concern,” Derek Adams, a former Justice Department trial attorney, told MarketWatch. But last week the government issued further guidance saying that applicants must exhaust other avenues of liquidity that would enable them to support ongoing operations. “This suggests a more robust analysis than what a lot of folks initially anticipated,” said Adams. “Businesses should do a fresh analysis to understand if they can support this certification before May 7,” a government-set deadline for paying back loans.
Read more: Treasury gives big public companies until May 7 to return loans meant for small businessesCompanies that are found to have misled the government about the necessity of the loans could face penalties ranging from a loss of loan forgiveness to jail time. “When you’re making a certification in connection with receiving this loan, you face criminal liability” under statues that proscribe lying to government as well as mail fraud and wire fraud, Adams said.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Never take government loans. Not worth the stress.
How many Billionaires are going to get sued for all their fleecing?
Small businesses? What about the banks who crashed the economy in 2007? How about the mega corporations who use the media to sway public opinion?
Hopefully they're starting with the companies that took the loans despite needing the loophole to qualify as anything other than a national chain...
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A Small-Business Owner Struggles to Decide Whether to Reopen“There’s too much on the line, between the people whose livelihoods are depending on this place and what the theater means to the community culturally.” Doesn't matter. Thanks to realDonaldTrump, this time next week we'll all be dead. TrumpLiesPeopleDie
Source: Slate - 🏆 716. / 51 Read more »
JPMorgan says its coronavirus relief loans were mostly small in amount and for tiny companiesA replenishment in the heavily criticized Paycheck Protection Program resulted in a firehose of small business lending from JPMorgan Chase, the financial institution said '🎶 Another day older and-a deeper in debt 🎶' I love the use of “firehose” as the choice word. CNN can spin anything remotely positive into Trump is evil so quick. Really? Filed with Chase first day of first round. After funding dried up got an email saying I was in Stage 3 (ready for SBA submission). Monday the 2nd round opened filed with Lendio & was funded 3 days. Chase doesn’t work for small business. And will no longer be my bank.
Source: CNN - 🏆 4. / 95 Read more »
Elite D.C. School, Sidwell Friends, Takes $5.2 Million Small Business LoanSidwell Friends — an elite D.C. school with alumni including the children of presidents Obama, Clinton and Nixon — received a $5.2 million Paycheck Protection Program loan. Its board said the goal was to avoid layoffs and furloughs. (wamu885) wamu885 Got nothing else to say so oh ok then. wamu885 I find many of the schools and companies that received money to be highly improper; private schools and CEO'S that earn millions a year. Another thing is that the lists of who received funds not available to taxpayers... Corrupt choices? wamu885 disgrace--Get money from your wealthy alumni. I know many many small businesses hanging on by a shoestring who got NOTHING. Total Federal Government shit show. BarackObama MichelleObama you should be ashamed. You can prop them up. Give trump 4 more years. Who cares anymore?
Source: NPR - 🏆 96. / 63 Read more »
Treasury Secretary Steve Mnuchin calls for private schools with large endowments to return small business loans'It has come to our attention that some private schools with significant endowments have taken PPP loans,' Mnuchin wrote on Twitter, 'They should return them.' What about public schools with huge and profitable football programs? Greed knows no bounds. Harvard isn’t going to return the money.
Source: Newsweek - 🏆 468. / 52 Read more »