Home Precision Agriculture Rampant Farm Fraud Reportedly Plagues PPP Loans

Rampant Farm Fraud Reportedly Plagues PPP Loans

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In its efforts to maintain small companies afloat through the pandemic, the federal government made some huge cash out there. In all probability, on reflection, it was too out there.

In response to a brand new report from Derek Willis and Lydia DePillis at ProPublica, fraud in these applications typically concerned pretend and never even significantly well-faked farms. 

The CARES Act, which was signed into regulation on March 29, 2020, included a heaping quantity of funds for the Paycheck Safety Program, or PPP, and people funds would later be almost doubled in capability. The PPP was designed to offer forgivable loans to small companies affected by the COVID-19 pandemic—a bit of cash to assist with payroll and lease, to maintain a enterprise simply barely above water till the worst of the pandemic was over. 

However the ProPublica investigation, together with the Division of Justice’s many lawsuits referring to PPP fraud, reveals that many cases of fraud have been, theoretically, agricultural. Many farmers legitimately took benefit of PPP loans, though they did often have to attend for the second spherical, owing to bizarre revenue tabulations within the first spherical. 

The loans discovered within the ProPublica investigation, although, are removed from respectable. One rip-off appears to have concerned artificial id theft, wherein some actual info (similar to names, addresses or Social Safety numbers) are paired with pretend profiles. These artificial fraudsters would create seemingly random pretend farms, and lots of aren’t in the least believable. A cattle ranch known as “Beefy King” within the seashore cities of the New Jersey coast? An orange grove in Minnesota? 

However that didn’t matter, due to automated approval providers, which processed these PPP loans with out a human ever taking a look at them. We don’t wish to spoil extra of the story, however head on over to ProPublica to examine Kabbage, one in every of these approval providers, and the way it enabled a pretend potato farm in Florida to snag tens of 1000’s of {dollars}, amongst many different frauds.



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