FULL: 870,000 COVID-era alleged scammers busted during crackdown, fraud worth 39B, according to DOJ

Vice President JD Vance announced Monday that the Trump administration has permanently suspended nearly 870,000 borrowers from future Small Business Administration (SBA) loans and other agency programs as part of its crackdown on suspected pandemic-era fraud. The borrowers are tied to an estimated $39 billion in suspected fraud across 45 states and territories, SBA Administrator Kelly Loeffler said during a White House Fraud Task Force event in Kansas City, Missouri. With earlier actions in five states, the SBA has now suspended borrowers tied to an estimated $49 billion in suspected fraud nationwide, Loeffler said. “If you screwed the American taxpayer, the federal government is now going to say you’re cut off. No more,” Vance said. The suspensions bar the borrowers from future small-business and disaster loans, as well as SBA programs including federal contracting. Loeffler said the agency referred $22 billion in suspected fraudulent pandemic-era loans to the Treasury Department for collection this summer. Separately, the Justice Department announced “Operation Heartland Surge,” a nationwide enforcement effort that ran from June 12 through Sept. 1. The initiative involved prosecutors from 44 U.S. attorneys’ offices and more than 20 federal and state investigative partners, resulting in actions involving more than 160 defendants and approximately $245 million in intended losses. Federal prosecutors filed felony charges against nearly 80 defendants in cases involving about $100 million in intended losses tied to SBA pandemic-relief programs. Another 43 defendants pleaded guilty in cases involving roughly $44 million in intended losses, while about 40 defendants were sentenced in cases involving nearly $100 million. The Paycheck Protection Program was created to save jobs and keep good American businesses alive during COVID, but some fraudsters treated it like a personal piggy bank,” Attorney General Todd Blanche said. Blanche highlighted the case of Jamie Gray, who is charged with wire fraud and money laundering in an alleged scheme involving nearly $56 million in intended losses. Prosecutors allege Gray submitted PPP and COVID Economic Injury Disaster Loan applications claiming ownership of dozens of businesses that were operating before the pandemic. Nearly all were not operating before the programs’ eligibility deadline, prosecutors said. One business, “Fur Lives Matter,” existed but had no connection to Gray. In a separate case, a northern Iowa grand jury indicted Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban on 47 counts of wire fraud, money laundering and conspiracy. Prosecutors allege they and more than 100 others submitted about 470 fraudulent PPP applications, seeking more than $4.5 million. Approximately $2.4 million was disbursed, according to the Justice Department. Both defendants remain at large. Loeffler said the SBA and its inspector general are also launching “Operation No Doze,” beginning in Missouri and Kansas. The operation will send demand letters to suspected pandemic-fraud borrowers as the agency seeks to recover money and refer cases for criminal prosecution where warranted. ----------------------------------------- Stay up to date with our social media: BakersfieldNow on Facebook:   / bakersfieldnow   BakersfieldNow on Twitter:   / bakersfieldnow   BakersfieldNow on Instagram:   / bakersfieldnow   Subscribe to BakersfieldNow on YouTube: / @bakersfieldnow For more information, visit https://bakersfieldnow.com/ Have a news tip? Send it directly to us: Email us: news@bakersfieldnow.com Call our Tipline: 661-869-2929 KBAK and KBFX are CA based stations and a CBS and FOX Television affiliates owned and operated by Sinclair Broadcast Group. Sinclair Broadcast Group, Inc. is one of the largest and most diversified television broadcasting companies in the country today. #bakersfield #News #KBAK #KBFX #BakersfieldNow#kerncounty #California