Secret Service recovers $286M in stolen Pandemic Loans

Secret Service recovers $286M in stolen Pandemic Loans

WASHINGTON (AP) – The U.S. Secret Service said Friday that it recovered $286 million in fraudulently obtained pandemic loans and is returning the money to the Small Business Administration.

The Secret Service said an investigation initiated by its Orlando office found that alleged conspirators submitted Economic Injury Disaster Loan applications by using fake or stolen employment and personal information and used an online bank, Green Dot, to conceal and move their criminal proceeds.

The agency worked with Green Dot to identify roughly 15,000 accounts and seize $286 million connected to the accounts.

Billions have been fraudulently claimed through various pandemic relief programs — including Paycheck Protection Program loans, unemployment insurance and others that were rolled out in the midst of the worldwide pandemic that shutdown global economies for months.

Since 2020, the Secret Service initiated more than 3,850 pandemic related fraud investigations, seized over $1.4 billion in fraudulently obtained funds and helped to return $2.3 billion to state unemployment insurance programs.

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