President Biden Extends Statute of Limitations for PPP and EIDL Fraud to Ten Years
By: Richard L. Smith
A husband and wife team who runs a non-profit organization that assists youth with social services, among other skills, in Newark and Essex County is one of the dozens of non-profit organizations around NJ under investigation for applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible sources close to the investigation told RLS Media Sunday.
According to News Nation, at the beginning of the month, President Biden released a proposal to crack down on widespread pandemic relief fraud totaling billions of dollars, targeting thieves who stole crucial Paycheck Protection Program (PPP) loans from businesses struggling to stay afloat during the shutdowns.
“The PPP was intended to provide critical economic relief to eligible small businesses and other entities" -US Department of Justice
Due to the active and ongoing investigation, federal officials refused to release the name of the particular Newark non-profit organization that reportedly requested and received tens of thousands of dollars in relief funds and then used it to purchase a new vehicle and other personal items. The organization did not have employees but used fraudulently individuals on the application to obtain the funds.
RLS Media confirmed that the non-profit organizations' authenticity -mentioned by the source- in the investigations are all organized and operated exclusively for exempt purposes outlined in section 501(c)(3).
The US government has prioritized fraud investigations and enforcement for funds issued under the pandemic-related CARES Act, most notably regarding funds related to the Paycheck Protection Program. In December 2022, Congress issued a report detailing what it considered to be widespread fraud in the PPP.
According to the Attorney General's Office, on May 17, 2021, the agency established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud.
The Attorney General's Office initially flagged the Essex County husband and wife's non-profit entity last year. Still, a slight technicality gendered the operation that has since reopened and is active, and the source told RLS Media.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division's Fraud Section, which can be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721