Pandemic Fraud Crackdown: US Bank Employees Indicted Over Document Fraud

U.S. pandemic fraud crackdown yields first case against bank employees https://t.co/1U7m06Hume pic.twitter.com/2h81m69u5f

— Reuters (@Reuters) September 27, 2021

The prosecutors further explained that Okeke conspired with others to recruit applicants for loans from the Paycheck Protection Program and the Economic Injury Disaster Loan Program, and created false documents to avail monetary benefits. At least two other individuals have pleaded guilty in connection with this scheme.

The loan program, which provided forgivable and low-interest loans to small businesses, was part of Congress’ multi-trillion-dollar response to the pandemic. However, the relief efforts have been plagued by “unprecedented levels of fraud,” the U.S. Special Inspector General for Pandemic Recovery said in June.

Since the lockdown, a 40% rise has been recorded in scams and fraudulent cases. Among the prevalent COVID-19 related frauds are fake vaccine emails for phishing attacks, vacation and travel scams, peer-to-peer mobile payment scams, data breaches in healthcare, fake investment scams, and employment benefits scams. 

While more than 500 individuals in the US have been charged with pandemic-related fraud, the current case appears to be the first involving a fraudulent scheme within a bank.

Suggested Read: Michigan Man Convicted for COVID-19 Relief Fraud