August 29, 2022
Main Street Monday – Secret Service Returns $286 Million in Fraudulent EIDLs to SBA
“Through intentional collaborations like this, OIG will continue to ensure that taxpayer dollars obtained through fraudulent means will be returned to taxpayers and fraudsters involved face justice,” says the SBA Inspector General, Hannibal “Mike” Ware. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the U.S. Secret Service and our many partners in law enforcement for their tireless dedication and focused commitment to seeing justice served.”
In an investigation launched by the Secret Service’s Orlando office, the Secret Service reported that they recovered $286 million in fraudulent Economic Injury Disaster Loan funds which will be returned to the SBA. They identified around 15,000 accounts that submitted applications with stolen or false information. Green Dot, an online bank, worked with the Secret Service to confiscate criminal proceeds that were concealed and moved at their bank. The SBA Inspector General, DOJ, and other government offices collaborated in this seizure.
Since the start of the pandemic, the Secret Service has initiated over 3,850 pandemic-related fraud investigations and investigative inquiries. They retrieved $1.4 billion in fraudulently obtained pandemic funds and returned $2.3 billion to state unemployment programs.
“The Secret Service is dedicated to safeguarding the integrity of the nation’s financial systems against fraud and holding those responsible to account for their criminal activity,” says Assistant Director David Smith. “By aiding in the return of nearly $2.3 billion in stolen funds over the last 30 months, our workforce has demonstrated a clear and firm commitment to the vitality of American businesses across the country.”