Former TARP Special Inspector General highlights possible CARES Act scams

https://www.pogo.org/analysis/2020/04/former-bailout-cop-stood-up-to-senior-feds-and-bonus-hungry-insurance-execs-now-he-tells-pogo-how-to-oversee-the-2-trillion-cares-package/

 

He hopes Trump is bluffing about blocking the CARES Special Inspector General, argues that transparency is key to controlling fraud, and says this:

“It will be incredibly difficult to provide oversight of the $350 billion to SBA [the Small Business Administration] to distribute with essentially no criterion: there are essentially zero distribution or underwriting standards. Essentially, if an entity can fog a mirror, they can get the money. That presents a cornucopia of likely fraudulent activity. Businesses that aren’t businesses will apply. Businesses will lie about retaining their employees. You will see insiders at newer lending platforms who will create dummy companies, give loans, and forgive them. There are a million types of fraud that come from inexperienced lenders and no underwriting standards.”

 

Charlie Cooper

H: 410-578-8291

M: 410-624-6095

Get Money Out – Maryland (GMOM)

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