Carr: More than $604,000 tied to Paycheck Protection Program fraud
(The Center Square) – Attorney General Chris Carr said 21 Mitchell County residents are facing charges in connection with a Paycheck Protection Program fraud scheme that netted each person more than $20,000.
The 21 individuals are accused of claiming they owned businesses that investigators found to be nonexistent, according to Carr. Some of those indicted received a second loan, according to Carr. The combined amount of loans is more than $604,000.
The Paycheck Protection Program was designed to help small businesses struggling during the COVID-19 pandemic with loans that could be later forgiven. More than $813 billion was doled out, according to a July 2024 report from the Office of the Inspector General for the Small Business Administration. More than $48 million in fraud has been discovered, according to the Department of Justice.
The 21 individuals are charged with theft by taking and false swearing, according to Carr’s office.
“In the face of an unprecedented global health pandemic, the Paycheck Protection Program was intended to help small business owners keep their doors open and their employees paid,” Carr said. “Those who took advantage of the system to fraudulently obtain funds will be held accountable. We’re committed to protecting taxpayer dollars no matter the amount, and we will continue to fight for our local businesses that are doing things the right way.”