Vice President JD Vance announced on Monday that 870,000 people will be permanently prevented from applying for federal loans amid allegations that they previously defrauded the government through the COVID-19 pandemic-era Paycheck Protection Program.
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they → announce → Program
“Well, we think it makes sense that if you were caught stealing from the American taxpayer, you shouldn’t be able to benefit from these loans anymore,” Vance told reporters at the FBI field office in Kansas City, Missouri.
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Vance → think → City
“So we’re going to suspend about 870,000 people from being able to access these funds in the future and from being able to borrow money from the American taxpayer.
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we → go → taxpayer
The suspensions cover borrowers tied to an estimated $39 billion in suspected fraud across 45 states and territories, Small Business Administration chief Kelly Loeffler said.
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Loeffler → cover → states
The action accompanied the Justice Department’s announcement of charges against about 80 people following a nationwide enforcement campaign focused on COVID-19 relief programs.
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action → accompany → programs
“If you screwed the American taxpayer, the federal government is now going to say, ‘You’re cut off.
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You → screw → taxpayer
No more,'” said Vance.
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Vance → say → ?
“You shouldn’t be applying anymore, and if you do apply, you’re no longer able to get those benefits.
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you → apply → benefits
Vance appeared in Kansas City with Loeffler, Attorney General Todd Blanche, FBI Director Kash Patel, and federal and state law enforcement officials to announce the results of the initiative, called the “Heartland fraud surge.”
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Vance → appear → initiative
“The Paycheck Protection Program was created to save jobs and keep good American businesses alive during COVID,” Blanche said.
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Blanche → create → COVID
“But some fraudsters treated it like a personal piggy bank.”
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fraudsters → treat → bank
The campaign, conducted from June 12 through Sept. 1, produced enforcement actions involving more than 160 defendants and approximately $245 million in intended taxpayer losses, according to the Justice Department.
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campaign → conduct → Department
Prosecutors from 44 U.S. attorneys’ offices worked with more than 20 federal and state investigative partners.
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Prosecutors → work → partners
Nearly 80 defendants faced felony charges in cases involving about $100 million in intended losses connected to SBA pandemic programs.
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defendants → face → programs
Another 43 defendants pleaded guilty in cases involving approximately $44 million, while about 40 were sentenced in cases representing nearly $100 million in intended losses.
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40 → plead → losses
The alleged schemes included fabricated businesses, false payroll and revenue figures, identity theft, and the use of relief money for personal expenses.
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schemes → allege → expenses
One Missouri defendant, Jamie Gray, was charged with wire fraud and money laundering in an alleged scheme involving nearly $56 million in intended losses.
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defendant → charge → losses
Prosecutors said Gray submitted applications for dozens of purported businesses, nearly all of which were not operating before the programs’ eligibility deadline.
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all → say → deadline
Patel highlighted a separate FBI effort created after Vance suggested establishing a most-wanted list devoted to financial crimes.
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Vance → highlight → crimes
Authorities have captured six people placed on the list, Patel said, including a suspect apprehended in Vietnam over the weekend.
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Patel → capture → weekend
“We will manhunt these fraudsters on every corner of the planet,” Patel said, adding that the six suspects were connected to more than $2 billion in alleged fraud.
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suspects → manhunt → fraud
Congress created the Paycheck Protection Program in March 2020 to help businesses retain workers during pandemic shutdowns.
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businesses → create → shutdowns
Lenders made about 11.8 million government-backed loans totaling roughly $800 billion before the program stopped issuing loans in 2021.
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program → make → 2021
Federal watchdogs later found that important screening safeguards were not implemented until after hundreds of billions of dollars had been approved.
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billions → find → dollars
The SBA inspector general estimated in 2023 that more than $200 billion distributed through the PPP and a separate disaster-loan program showed potential signs of fraud.
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billion → estimate → fraud
Congress extended the statute of limitations for pandemic-loan fraud to 10 years.
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Congress → extend → years
The announcement follows Vance’s prominent appearance last week at the Republican midterm convention in Dallas, where he urged voters to preserve the party’s congressional majorities.
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he → follow → majorities
Vance has not announced a presidential campaign but is widely viewed as a front-runner for the 2028 Republican nomination if he enters the race.
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he → announce → race
“This should have been done earlier,” Vance said of the fraud crackdown.
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This → do → crackdown
“It’s kind of ridiculous that so much of the fraud that we saw under the PPP program wasn’t actually enforced, wasn’t taken seriously by congressional Democrats, or the Biden administration.
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we → ’ → Democrats
So what we’ve done here is say that no fraud is too small.”
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fraud → do → what
The vice president, who is also scheduled to attend a campaign event for Sen. Roger Marshall (R-KS) later Monday in nearby Kansas, closed with a message to voters ahead of November’s midterm elections.
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who → schedule → elections
“If you’re looking to cast a ballot in November for somebody who’s going to protect your taxpayer dollars and ensure that the food stamp program actually goes to young families, who ensures that the Medicaid program actually ensures that our low-income children have access to a doctor, who ensure that our Small Business Administration goes to upstart companies, not to fraudsters, then you need to think seriously about why congressional Democrats have refused to help us at every step of the way,” he said.
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he → look → way
The Aporia
