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Reort: Probe into fraudulent PPP loans has ensared numerous state workers, including those at facilities for the disabled

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* Molly Parker

Dozens of state employees across multiple agencies are under investigation by a state watchdog for claims they fraudulently obtained payments from a federal pandemic-era loan program, Capitol News Illinois has learned.

Neil Olson, general counsel at the Illinois Office of the Executive Inspector General, confirmed that “OEIG has been investigating allegations of Paycheck Protection Program fraud by state employees under our jurisdiction.” The review, he said, is “systematic,” involving multiple state agencies and the other governing bodies under OEIG’s jurisdiction, which include state universities, boards and commissions, and regional transit boards. […]

Fraud in the PPP program has been widespread across the United States. In a June report, the inspector general for the SBA estimated that the agency paid out more than $200 billion in “potentially fraudulent” aid during the pandemic – about 17 percent of the $1.2 trillion that was dispersed through the PPP and other similar programs. […]

The scandal has ensnared numerous employees who work at the Illinois Department of Human Services, including at state-run facilities for people with disabilities that are facing staffing shortages. In late June, a spokesperson for the agency confirmed that at least 30 IDHS employees were in various stages of the disciplinary process for inappropriately taking PPP loans. At the time, eight IDHS employees had been fired, six had resigned and 16 were pending disciplinary action. […]

The fraud was not limited to IDHS. Collectively, state employees may have obtained millions of dollars in fraudulent payments. A spokesperson for Gov. JB Pritzker declined to provide specifics about how many employees have faced disciplinary action for PPP fraud, saying that the governor’s office does not comment on ongoing investigations. While some employees have already received notices of their termination, they have a right to appeal that decision.

Well, that’s one way to get rid of the dead weight.

posted by Rich Miller
Wednesday, Aug 2, 23 @ 6:15 pm

Comments

  1. Absolutely demoralizing…fire then charge….with the whole book.

    Comment by Dotnonymous x Wednesday, Aug 2, 23 @ 6:41 pm

  2. Big government is expensive. But, this is predictable.

    Comment by Steve Wednesday, Aug 2, 23 @ 6:42 pm

  3. As a former DHS employee I am completely unsurprised.

    Comment by Friendly Bob Adams Wednesday, Aug 2, 23 @ 7:39 pm

  4. PPP is turning out to be an IG full employment provision. See similar investigation reports from Chicago and Cook County.

    Comment by Socially DIstant watcher Wednesday, Aug 2, 23 @ 10:30 pm

  5. === “systematic,”===

    From what I have heard they set a pretty generous floor to the amount of PPP Loans someone received that resulted in an investigation. Though to be fair I would consider anything above $0.01 in fraudulent PPP loans to be a generous floor.

    Comment by Candy Dogood Wednesday, Aug 2, 23 @ 10:46 pm

  6. At the time it was more important to get the loans out and circulating than be too restrictive, knowing that there would be some leakage. This is the Finding Out phase for those that messed around.

    Comment by Give Us Barabbas Wednesday, Aug 2, 23 @ 11:07 pm

  7. One of the reasons for the wave of retirements lately. There is a public PPP site you can plug your coworkers names into.

    Comment by DHS Drone Thursday, Aug 3, 23 @ 8:31 am

  8. Who prosecutes state or feds ? Lots of questions, one being, did they use state computers to perpetrate fraud ?

    Comment by NorthSideNoMore Thursday, Aug 3, 23 @ 11:45 am

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