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Started By
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re: How are these bankers allowing PPP fraud not busted?
Posted on 8/13/20 at 10:54 am to Hermit Crab
Posted on 8/13/20 at 10:54 am to Hermit Crab
As a banker, you can look at everything and check every box and if someone is going to defraud you they’re going to defraud you. We know we get payroll reports and tax forms, but there is no way to audit every single one of those forms nor do we have the knowledge or know how to do so. Nor were we required to do so by Sba’s own guidelines.
When there is that much money moving into the economy as quickly and easily as it did, fraud is going to happen. It’s simply a numbers game.
You can easily go back after the spilt milk and maybe find little nuances you possibly could have caught or questioned further, but hindsight is always 20-20 and we were told by Sba and treasury to get the money on the street. There was no time for a 4 week underwrite of each deal like a normal line of credit would require. And even then fraud still happens.
When there is that much money moving into the economy as quickly and easily as it did, fraud is going to happen. It’s simply a numbers game.
You can easily go back after the spilt milk and maybe find little nuances you possibly could have caught or questioned further, but hindsight is always 20-20 and we were told by Sba and treasury to get the money on the street. There was no time for a 4 week underwrite of each deal like a normal line of credit would require. And even then fraud still happens.
3
Posted on 8/13/20 at 1:07 pm to Im4datigers
quote:
As a banker, you can look at everything and check every box and if someone is going to defraud you they’re going to defraud you.
Sure I get that absolutely, but at the same time I believe I had to submit somethings that would make some of this very VERY obvious. Such as, bank statements for 2-3 months or a tax form.
You are certainly right in that maybe these guys are forging all the bank statements, tax forms, payroll forms, etc.
Posted on 8/13/20 at 10:43 pm to Im4datigers
quote:
As a banker, you can look at everything and check every box and if someone is going to defraud you they’re going to defraud you. We know we get payroll reports and tax forms, but there is no way to audit every single one of those forms
Ha, um tie the payroll report to a bank statement for one month?
Posted on 8/14/20 at 9:06 am to Im4datigers
quote:
As a banker, you can look at everything and check every box and if someone is going to defraud you they’re going to defraud you. We know we get payroll reports and tax forms, but there is no way to audit every single one of those forms nor do we have the knowledge or know how to do so. Nor were we required to do so by Sba’s own guidelines.
I understand all of this, but to OP's point...how does a small business with less than 20 employees get over $1M and not raise any flags? The annual cap per employee was $100k. Yet, when you look at the FOIA, there are a number of companies that rec'd over 1M and had very few employees. There were a number of banks that were doing the due diligences that they could, and there were a number that were giving people everything they wanted without doing any due diligences.
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