According to an ongoing investigation, two Chicago-based Illinois State Police officers are suspected of defrauding the federal Paycheck Protection Program (PPP). The program was implemented to assist businesses afflicted during the COVID-19 pandemic.
It was stated that one officer applied for loan fraud under the guise of operating a kids’ sports program, while the other claimed to function as a “handyman”. Allegations against the two officers have been referred to the Illinois State Police Merit Board for disciplinary measures.
The state police provided the complaints following a public records request by the Chicago Sun-Times under the Illinois Freedom of Information Act. The Sun-Times’ request for documentation involving a retired officer, who also appears to have obtained a PPP loan according to public records, was dismissed by the agency.
PPP, a program managed by the U.S federal Small Business Administration, was reported to have suffered significant fraud with at least $200 billion in improperly obtained loans as per government estimates.
It is suspected that hundreds of Chicago area government employees, including police officers, firefighters, teachers, and more participated in the fraudulent program. Some have been terminated, however, criminal charges have rarely been pressed.
The accusations against these two state police officers taints the existing integrity of the agency, which is widely respected.
The officers who stand accused, are not identified here due to the lack of disciplinary action or criminal charges. During the investigation, one officer admitted to submitting false data in his PPP request. The said officer’s loan application stated ‘babysitting’ as his primary business activity and procured a loan of $17,707 that was later pardoned.
The other accused officer, upon inquiry, stated that the $100,000 gross income he reported included his salary from the state police.
Upon further examining their cases, it was revealed that the income reported on both their applications was far less than necessary to qualify for the loan.
### Frequently Asked Questions
#### What is the Paycheck Protection Program?
The Paycheck Protection Program (PPP) is a federal initiative led by the U.S. Small Business Administration designed to provide forgivable loans to businesses grappling with financial constraints due to the COVID-19 pandemic.
#### What are the penalties for fraudulently obtaining a PPP loan?
If convicted, PPP loan fraud carries severe legal and financial consequences. These include penalties, fines, and potentially, imprisonment.
#### How does the government detect PPP loan fraud?
Through ongoing investigations and audits, the government is continuously monitoring for suspicious activity and red flags associated with PPP loan fraud. In some cases, whistleblowers may also report suspected fraud.
