October 19, 2021

The Queens County Citizen

Complete Canadian News World

The banks were involved in an investigation into coronavirus loan fraud

The banks were involved in an investigation into coronavirus loan fraud

A new report Saturday showed that some major banks have received grand jury hearings as part of a federal investigation into fraud involving the $ 660 billion Corona virus emergency loan scheme for small businesses.

Two sources Told Reuters The Justice Department had sent sub-phones to the major banks but did not name those companies. JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. Four of the mega banks participating in this project.

Under the plan, infected small businesses can apply for a government-backed loan and be forgiven if they cover at least 75% of wage costs. However, lawmakers have expressed concern that the money will attract fraudsters.

Treasury Secretary Steven Mnuchin said companies that lied to obtain loans could sue. The Justice Department began investigating the plan last month. Criminal charges have been brought against some borrowers.

“Right now, we don’t think the banks are 100% targeted,” a source told Reuters, adding: “There are concerns that banks will have a boomerang effect after six months on the road. They are not doing enough.”

READ  COVID raises death toll after Hebrew Home Post report in Riverdale