3 from Michigan charged in fraud scheme in COVID business loan program
The Detroit News
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Three Michigan residents were among 17 people charged in an $11 million fraud scheme involving Paycheck Protection Program loans.
Between May and August 2020, the 17 defendants allegedly submitted or helped in the submission of PPP loan applications seeking $800,000 each for 14 businesses, said the U.S. Department of Justice.
To receive the money, the defendants allegedly submitted fraudulent IRS Form 941s, which are used by businesses to report payroll taxes.
After the loans were received by the businesses, the defendants allegedly disguised the way they distributed the money to conspirators and disguised the ways the money was spent, said the Justice Department. The loans were distributed by the Small Business Administration to help employers keep their workforce employed during the COVID pandemic. The program ended in May, according to the SBA website.