[Hedley Lamarr]

Probably is still voting too.

She was a devout Catholic. Still praying, Yes. Voting, probably not.

[fundingsmbs]

https://www.usatoday.com/story/news/...am/3085676001/

[WestCoastFunding]

Interesting twitter thread by the CEO of Fundera talking about how the PPP forgiveness aspect will be a calamity.

https://twitter.com/jaredhecht/statu...954865664?s=21

[Hedley Lamarr]

Interesting twitter thread by the CEO of Fundera talking about how the PPP forgiveness aspect will be a calamity.

https://twitter.com/jaredhecht/statu...954865664?s=21

As companies default on these programs, the government will find a way to avoid forgiveness. The owners will be straddled with a debt they cannot pay and it will be on their bank's book. Wait till some of the programs that were given to non-bank clients start to default. The first thing the regulators are going to ask: "Did you follow ALL the KYC and AML rules to open an account for the customer?"

KH

[abfunders]

As companies default on these programs, the government will find a way to avoid forgiveness. The owners will be straddled with a debt they cannot pay and it will be on their bank's book. Wait till some of the programs that were given to non-bank clients start to default. The first thing the regulators are going to ask: "Did you follow ALL the KYC and AML rules to open an account for the customer?"

KH

Kevin, I know that my bank emailed all the business clients (myself included) and said that if anyone would like to apply for PPP, they gave a link and told them with no uncertain terms that any business who applies must open a new account (even current clients), and then use that account to pay payroll moving forward on the program if accepted. Still doesn't solve every problem, but smarter banks are trying to control / segregate the bookkeeping.

[fundingsmbs]

more stories on our industry ISO's trying to help america w/PPP gone sour

https://news.bloomberglaw.com/corona...tion-they-need

[Hedley Lamarr]

https://www.cnn.com/2020/05/13/us/ma...est/index.html YIKES!

[Yankeeman07]

I'll play "Devils Advocate" Flame Trucking did NOT use the Loan for payroll etc. The Bank underwrote the loan,
approved the LOAN - The Bank has not even collected their funds from the SBA, they are using their own $$ -So the loan is NOT forgiven - so we have a 2 year loan @ 1%?

What say you great legal minds of DF?

[Hedley Lamarr]

I'll play "Devils Advocate" Flame Trucking did NOT use the Loan for payroll etc. The Bank underwrote the loan,
approved the LOAN - The Bank has not even collected their funds from the SBA, they are using their own $$ -So the loan is NOT forgiven - so we have a 2 year loan @ 1%?

What say you great legal minds of DF?

I wonder how many banks floated notes off their own balance sheets in anticipation of the SBA funding the loans......

[Hedley Lamarr]

This is why some banks were reluctant to assist non bank clients seeking PPP. KNOW YOUR CUSTOMER! There will be a lot more of this. Don't be surprised if some "advisors" that helped some trying to get PPP get charged as well.

Samuel Yates, 32, of Maud, Texas, has been charged with violations of wire fraud, bank fraud and false statements to a financial institution and to the Small Business Administration after allegedly seeking more than $5 million dollars in Paycheck Protection Program loans through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, according to a press release by the Department of Justice on Tuesday.

According to court documents, Yates allegedly made two fraudulent PPP loan applications to two different lenders.

In the application submitted to the first lender, Yates allegedly sought $5 million in PPP loan proceeds by fraudulently claiming to have 400 employees with an average monthly payroll of $2 million. In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan for over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator on the internet. He also submitted forged tax documents with each application.

CORONAVIRUS PPP LOAN RELIEF AND FRAUD: HOW THIEVES MAY TRY TO GAME THE SYSTEM

“Today’s arrest should serve as a strong deterrent to anyone considering exploiting the COVID-19 pandemic to enrich themselves through fraud," said Special Agent in Charge Ryan L. Spradlin of U.S. Immigration and Custom’s Homeland Security Investigations (HSI) Dallas. "These individuals have no concern for legitimate businesses whose employees and their families are hurting financially during these unprecedented times.”

U.S. Attorney Joseph D. Brown of the Eastern District of Texas said that "any time the government provides large amounts of money to the public, there are people who will try to cheat the system."

“We encourage lenders to be very careful, and to report suspicious applications," Brown added. "It is a priority of the Department of Justice to deter and prosecute this type of fraud.”

CORONAVIRUS PPP LOAN RECIPIENTS IN 'PANIC' OVER UNINTENTIONAL FRAUD AS SAFE HARBOR DEADLINE LOOMS

The charges against Yates are the latest development in the DOJ's investigation into PPP fraud claims.

Last week, Shashank Rai, 30, of Beaumont, Texas, was charged with wire fraud, bank fraud and false statements to a financial institution and to the Small Business Administration after allegedly seeking more than $10 million in PPP loans, according to a press release by the Department of Justice.

According to court documents, Rai allegedly made two fraudulent claims to two different lenders.

In the application submitted to the first lender, Rai allegedly sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai allegedly sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.

The Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020. Materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million.

CORONAVIRUS PPP LOAN RECIPIENT DEADLINE: GRACE PERIOD TO AVOID UNINTENTIONAL FRAUD ENDING

“When an individual cheats the Paycheck Protection Program out of money, it deprives hard-working Americans and deserving small businesses," said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). "The FDIC OIG is committed to working with our law enforcement partners to investigate financial crimes in order to preserve the integrity of the nation’s banking sector.”

SBA Inspector General Hannibal “Mike” Ware said small businesses are "counting on this program" and that the federal government and state and local officials will "safeguard it to maintain the public trust."

[WestCoastFunding]

Coming soon:


St Louis Pimp ‘Don Juan’ arrested for PPP fraud

CNCB — Notorious pimp, Don Juan, has been arrested and charged with federal bank fraud after misusing funds from a Paycheck Protection Program ("PPP") loan, federal officials said Wednesday.

Mr Juan runs a ***** house on St Louis’s east side, and submitted a PPP loan application for the entity on April 15, stating that the house had 17 *****s and an average monthly payroll of $1,490,200, according to an affidavit for the criminal complaint. When federal investor setup a sting they found Don Juan has, in fact, been paying his *****s $0 on the average month.

[kturner317]

Bluevine told me they won't be paying commissions on PPP funded loans until June or July. We also did an invoice factoring deal with them back in January for a client we have had since March of 2018, and they have not paid us on that either. We partnered with Bluevine when they first came out and never had a problem with them before this. They have always been a great partner in the past.

[Hedley Lamarr]

Bluevine told me they won't be paying commissions on PPP funded loans until June or July. We also did an invoice factoring deal with them back in January for a client we have had since March of 2018, and they have not paid us on that either. We partnered with Bluevine when they first came out and never had a problem with them before this. They have always been a great partner in the past.

Double Yikes!

[omegafund]

Bluevine told me they won't be paying commissions on PPP funded loans until June or July. We also did an invoice factoring deal with them back in January for a client we have had since March of 2018, and they have not paid us on that either. We partnered with Bluevine when they first came out and never had a problem with them before this. They have always been a great partner in the past.

Did you ask bluevine if they collected on the invoices they purchased? We received a nice size commission last months from bluevine. Never had issues will see on these PPP loans....

[Hedley Lamarr]

Did you ask bluevine if they collected on the invoices they purchased? We received a nice size commission last months from bluevine. Never had issues will see on these PPP loans....

Why would you have to ask? Don't they send monthly customer statements detailing activity/profits?