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Is there a new PPP hustle going around?

Posted on 5/24/21 at 11:07 am
Posted by Bazzatcha
Member since May 2017
748 posts
Posted on 5/24/21 at 11:07 am
Apparently there are a lot of people who didn't have a business prior to March 2020 getting PPP loans as sole proprietors and independent contractors. A good friend of mine, who lives in a low income community, called me over the weekend asking me what I knew about PPP and if he should apply. I asked him if he had a business, and he said no, but that doesn't matter. He said a lot of people around his area have been getting them lately after meeting with a CPA setting them up as a sole proprietor barber or farmer and that they are getting 20k and it would be forgiven if they pay themselves.

I started looking into various PPP sites to see who has gotten them and sure enough, there have been a ton of sole proprietor loans given out in the last month or two to people, and the dead giveaway was the people with the same last name.

Example, I searched Gatlin and found this:
Searched the name Gatlin

Try searching richardson, then scroll to the bottom so you get more recent loan information. You will see an interesting trend of first names that makes you start to believe what my buddy told me.

Those are the only two names I've tried so I stopped to get OT input. Is this a thing or am I trippin balls?
Posted by JetsetNuggs
Member since Jun 2014
13932 posts
Posted on 5/24/21 at 11:08 am to
If money is involved, then the answer is always yes
This post was edited on 5/24/21 at 11:09 am
Posted by lsufan9193969700
3 miles from B.R.
Member since Sep 2003
55122 posts
Posted on 5/24/21 at 11:08 am to
Yes
Posted by J Murdah
Member since Jun 2008
39784 posts
Posted on 5/24/21 at 11:09 am to
quote:

and the dead giveaway was the people with the same last name.
speaking of dead how many of those ppp loans are for dead people?
Posted by lsufan1971
Zachary
Member since Nov 2003
18285 posts
Posted on 5/24/21 at 11:09 am to
quote:

He said a lot of people around his area have been getting them lately after meeting with a CPA setting them up as a sole proprietor barber or farmer and that they are getting 20k and it would be forgiven if they pay themselves.


If they weren't in business in 2019 or 2020 then it's fraud.
Posted by NewIberiaHaircut
Lafayette
Member since May 2013
11560 posts
Posted on 5/24/21 at 11:10 am to
quote:

PPP hustle


quote:

friend of mine, who lives in a low income community


Just come out and say it baw.
Posted by DCtiger1
Panama City Beach
Member since Jul 2009
8778 posts
Posted on 5/24/21 at 11:10 am to
Yes, there are a lot of people trying to fraudulently obtain PPP loans and then trying to withdraw the money in cash at banks. Luckily most banks are freezing the accounts and not allowing the money to be withdrawn without additional documentation.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422599 posts
Posted on 5/24/21 at 11:11 am to
I imagine this is going to lead to lots of prosecutions. It's just way too easy for USA's not to get plenty of convictions. All they have to show is that you didn't operate the business prior to spring 2020 (iirc) and you're dead to rights. Then the USAs get to proclaim they're fighting fraud, which both sides of the public support overwhelmingly
Posted by LSU Coyote
Member since Sep 2007
53390 posts
Posted on 5/24/21 at 11:11 am to
But let us spend more money finding those Trump supporters who walked into the Capital Building instead of finding real criminals.
Posted by Centinel
Idaho
Member since Sep 2016
43341 posts
Posted on 5/24/21 at 11:11 am to
quote:

If they weren't in business in 2019 or 2020 then it's fraud.


Like that will matter.
Posted by moneyg
Member since Jun 2006
56553 posts
Posted on 5/24/21 at 11:12 am to
quote:

If they weren't in business in 2019 or 2020 then it's fraud.


Is it fraud if the government is encouraging the practice?
Posted by Freight Joker
Member since Aug 2019
2747 posts
Posted on 5/24/21 at 11:15 am to
I’ve heard truckers getting $20-30k right after setting up an LLC.

Oh and the freight market is better that it’s been in 10+ years.

Owner ops have gotten $50k+ after having record years.
This post was edited on 5/24/21 at 11:17 am
Posted by Chef Curry
Member since Mar 2019
2062 posts
Posted on 5/24/21 at 11:15 am to
quote:

He said a lot of people around his area have been getting them lately after meeting with a CPA setting them up as a sole proprietor barber or farmer and that they are getting 20k and it would be forgiven if they pay themselves.


I assume this is their CPA? Prepare thy anus for the IRS.
Posted by Jim Rockford
Member since May 2011
98195 posts
Posted on 5/24/21 at 11:16 am to
The first ppp was basically honor system. The second tranche, the one in effect now, you have to document that your business income for one quarter of last year was at least 25% lower than the corresponding quarter the previous year. I may be slightly off in detail but that's essentially it. Obviously if it's a brand new business you don't qualify. Sounds like the cpa is inducing them to commit fraud.
Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
39980 posts
Posted on 5/24/21 at 11:19 am to
quote:

If they weren't in business in 2019 or 2020 then it's fraud.



If you existed in 2019 and 2020, you're a sole proprietership.

As far as CDFI PPP is, that is.
Posted by GetCocky11
Calgary, AB
Member since Oct 2012
51296 posts
Posted on 5/24/21 at 11:21 am to
quote:

If you existed in 2019 and 2020, you're a sole proprietership.


What if you haven't filed a Schedule C in 2019 or 2020?
Posted by idlewatcher
County Jail
Member since Jan 2012
79203 posts
Posted on 5/24/21 at 11:23 am to
quote:

What if you haven't filed a Schedule C in 2019 or 2020?


You use preliminary numbers from their template.
Posted by GetCocky11
Calgary, AB
Member since Oct 2012
51296 posts
Posted on 5/24/21 at 11:24 am to
It just seems really easy to detect fraud with this program.
Posted by Curado Roy
Member since Apr 2021
100 posts
Posted on 5/24/21 at 11:24 am to
I can guarantee you the Secret Service, FBI, IRS-Criminal Intelligence, TIGDA (Treasury Department OIG), and other Feds are actively investigation PPP fraud cases.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
25455 posts
Posted on 5/24/21 at 11:26 am to
quote:

It just seems really easy to detect fraud with this program.


It is.
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