Serious Concerns of Potential Fraud in Economic Injury Disaster Loan Program Pertaining to the Response to COVID-19 [open pdf - 675KB]
From the Document: "The Office of Inspector General (OIG) is issuing this Management Alert to bring to your attention serious concerns of potential fraud in the Economic Injury Disaster Loan and Advance grant programs that require immediate attention and action. OIG has been inundated with contacts to investigative field offices from financial institutions across the nation and the complaint Hotline. We have received complaints of more than 5,000 instances of suspected fraud from financial institutions receiving economic injury loan deposits. Nearly 3,800 of those reported instances of suspected fraud came from only six financial institutions. An additional 1,220 reports of suspected fraudulent transactions have come in from other financial institutions. [...] Our preliminary review reveals strong indicators of widespread potential fraud in the program."
U.S. Small Business Administration: https://www.sba.gov/