Nearly 20 Arizonans accused of engaging in $3.5M scheme, authorities allege
In Phoenix, a crackdown on fraudsters who swooped in on billions of COVID-19 relief funding is now underway, and FOX 10 Investigative Reporter Justin Lum takes a look at a case where 20 defendants reportedly racked up at least $3.5 million.
PHOENIX – A crackdown on fraudsters who swooped in on billions of COVID-19 relief funding is underway in the United States, as well as in the Phoenix area.
The fraud happened early on in the pandemic, and we’re looking at a federal case rooted in the Phoenix area after a grand jury indictment of 20 defendants was prosecuted by the U.S. Attorney’s Office in Arizona.
The defendants are accused of using fraudulent applications to obtain millions of dollars in Small Businesses Administration (SBA) loans.
It’s still an active case, but the U.S. Secret Service spoke exclusively to FOX 10, and say the leaders of this group are facing federal charges after they allegedly targeted the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan programs within a span of four months.
The defendants reportedly racked up at least $3.5 million.
“This is a great thing. A great victory that’s going to save companies that are incredible companies that are going to need some help because of what happened,” said former President Donald Trump when the programs were announced. The programs were much-needed financial relief at the forefront of the…
