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during the pandemic the federal paycheck protection program loaned out about a trillion dollars the idea was to save millions of jobs but and this probably won't surprise you a lot some of that money was stolen by scammers financial fraud investigators pouring through all those loans are finding lots of businesses that had no business taking the money some even have names so crass we can't say them on tv blank the system for example tonight the i-team's chris glorioso investigates some of the most absurd companies that qualified for cash and why nobody gave them a second look buried in the long list of ppp loan recipients you can find some real zingers how about an employer called broke best friends llc or money [ __ ] mafia they're both headquartered in residential apartments and they got approved for more than 27 thousand dollars i mean it's pretty amazing to see some of those names we can't say this company's name on the air it's called the system llc based in this house on a hill the system was approved for more than 18 thousand dollars it's another case of the federal government not paying attention where they should be paying attention and then there's a company called satanic lives matter with offices in this house with the brown shutters they got almost fifteen hundred dollars you're wasting the hard-working people's money is what you're doing these absurdly named companies all have two things in common they were approved for thousands in federal ppp loans and according to business records none of them were registered with their respective states before the pandemic according to ppp rules only employers in operation by february 15 2020 were eligible that is frustrating to nazir nasir he owns galaxy computers in yonkers a small business that's been open for nearly a decade when he applied for a ppp loan i was expecting like at least 15 to 20 dollars he got just ninety four dollars so ninety four dollar is not my even a phone bill the i team tried to contact the system broke best friends and money [ __ ] mafia we couldn't find any of the owners online or on the phone and we did leave messages we're trying to figure out how your company got money without any record of incorporation someone did pick up at the address listed for satanic lives matter but she said she never got a ppp loan but you don't have a company called satanic lives matter it is important to point out none of these crudely named companies has been accused of wrongdoing and the cares act did not require loan recipients be registered with their respective states but earlier this year the small business administration inspector general found 5 000 businesses got more than 400 million dollars even though they registered federal tax numbers after february 2020 auditors said that may indicate the businesses were created to fraudulently gain access to program funds every dollar that goes out to in to a fraudulent application is a dollar that's not going out to a business that really needs the resources tom miller is ceo of clear force a company that works with financial firms to root out fraud he says his team did its own analysis of more than 130 ppp loan recipients he found more than a thousand of them were run by people with felonies on their records recent felonies were supposed to be a disqualifier and half of the felons that we found the felony crime that they committed was financial fraud we couldn't find any of those crudely named companies so we asked the small business administration about them an sba spokesperson told us the agency does not comment on specific borrowers but stress it is actually the responsibility of private lenders to vet and determine ppp eligibility nonetheless the sba says if anybody out there suspects ppp loan fraud you can report it by going to sba.gov fraud reporting from the newsroom chris glorioso news 4 new york
Thanks for your comment Bennett Besio, have a nice day.
- Donella Cabeza, Staff Member
hi do you own an LLC and are you in the next wave of applying for the PPP loans if so I've got three items that you're going to need to have ready when you file the application I'm Kathryn Taylor I'm the lawyer for business owners as you know the next wave of PPP funding has been approved and there are probably a lot of businesses who are now filing their applications if you own an LLC you're going to need a lot of financial information but in addition to that you're going to need some LLC type of information so the first thing I'd like you to do is to make sure your LLC is in good standing the best way way to figure that out is to go to your state website and determine whether the website states that your LLC is in good standing or not if not then you need to figure out very quickly how to get it in good standing because you probably will not get a loan if your LLC is not in good standing second you're probably going to need a copy a signed copy of your articles of organization that were filed with the state at the very beginning a lot of people don't necessarily have these in their files if not you may be able to get a copy printed off of the state website you may have to actually order it from the state and if that's the case make sure you request that immediately and then the next thing I want you to check is to determine if you have a signed copy of your operating agreement some LLC's don't have operating agreements but if you do have one you probably are going to be requested to provide one with your application and you will need a signed agreement to provide with that application in another video in the same feed I'm going to be giving some tips about how to gather all the financial information you're going to need to have together and if you are interested in that you can keep scrolling and see that video I'm Katherine Taylor the lawyer for business owners if you any questions please feel free to give me a call or email me my contact information is on my website at wowt.com thank you you
Thanks ia1dW your participation is very much appreciated
- Donella Cabeza
About the author
I've studied health geography at The College of Idaho in Caldwell and I am an expert in business law. I usually feel high. My previous job was marine and aquatic biologist I held this position for 24 years, I love talking about guerrilla gardening and badminton. Huge fan of Wanz I practice parachuting and collect cheese labels.
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