Main Street Monday — Over 275 Illinois State Employees Committed PPP Loan Fraud

December 2, 2024

Bob Coleman
Founder & Publisher

Main Street Monday — Over 275 Illinois State Employees Committed PPP Loan Fraud

The PPP loan fraud investigation by the state of Illinois continues to grow, with now more than 275 employees accused of fraud.

Employees lied about being self-employed and provided false information about their income to the Small Business Administration (SBA).

Since 2022, at least 43 employees have been fired and another 53 have resigned.

The Illinois News Bureau cited one case of a human services caseworker who had been working for the Illinois Department of Health Services since 2016. The employee told investigators that her barber recommended a company that would help her apply for a PPP loan. She sent the company her personal information, including her Social Security number. The company filled out the form and simply asked her to sign. She paid a $3,000 kickback for the service and obtained a $20,000 PPP loan.

The Department of Justice has indicted a number of third-party loan brokers who facilitated the fraud. Last year, two Illinois businessmen were alleged to have fraudulently obtained $7.8 million by creating false applications and documentation for a fee ranging from $1,000 to $4,000 per loan.

Check out the chart of Illinois employees by agency.