[Yankeeman07]

Gone Fishing

[Kevin Henry-Seacoast]

He allegedly lied on his application - that is a no-no.

"The complaint alleges Ugarte used 60% of the loan to pay the past due truck payments, leaving only 40% for payroll costs." Therefore, the PPP will not be forgiven and he has a 1% loan for 2 years ?

Payments are also deferred for 6 months, so they seem to be jumping the gun on the usage of $$.

What am I missing?

Not abiding by know your customer rules and NOT doing thorough back ground checks will bite you on the ass every time. Wait till all the banks that did these PPP loans to "new" customers get audited for KYC and AML.