The investigation of loan fraud committed by disaster recovery recipients and Louisiana politicians is alarming. Businesses issued large political donations after receiving taxpayer-backed federal money. They received this money in the form of contracts, grants, PPP loans, or other financial assistance. This raises concerns about the legitimacy of their need for assistance. Disaster recovery recipients who issued campaign contributions after receiving their awards should be asked to repay the taxpayers.
Political donations flowed from over 100 businesses. These donations came after they received nearly $200 Million in taxpayer backed government funds. This is according to an analysis of federal data by Motion to Quash LLC.
The payments suggest that many of these recipients not have truly needed the disaster assistance. These funds are meant for struggling small businesses. Fraud schemes like this are the costliest for taxpayers.
Louisiana Lawmakers Repeal Campaign Limits After PPP Loans
In 2021 Louisiana lawmakers made a significant change to an essential law when they decided to pass SB4, to remove certain campaign finance limitations (Repeals R.S. 18:1505.2(H)(7)).
Elected officials from Louisiana are being scrutinized under the False Claims Act. Contributions alone are not enough for an investigation. Nonetheless, generous campaign contributions and confidential disclosures submitted to the Inspector General are enough evidence to lead to criminal prosecutions.
Click the link to view the recipient’s federal award profile.
Recouping Stolen Pandemic Loan Funds
On September 27, the U.S. House Committee on Small Business held a hearing. It was entitled “Action Through Innovation: Private Sector Solutions to Recouping Stolen Pandemic Loan Funds.” The hearing touched on different solutions. The Small Business Administration (SBA) could take these solutions to recoup fraudulent loans issued as part of pandemic lending programs.
“When the pandemic started, the SBA took on an outsized role in restarting our nation’s economy. The PPP and EIDL programs were vital to saving small businesses, but that fact does not excuse $200 billion in fraud,” explained Chairman Roger Williams (R-TX). “It’s a top priority of this Committee to recoup these stolen funds, and yesterday’s hearing looked at new, innovative private sector solutions to do just that. I’m very grateful for our four witnesses, and we’ll continue our work on holding these fraudsters accountable.”
Click the link to read the Statement of Michael E. Horowitz, Chair, Pandemic Response Accountability Committee, Inspector General, U.S. Department of Justice before the U.S. House of Representatives Select Subcommittee on the Coronavirus Crisis concerning “Examining Federal Efforts To Prevent, Detect, And Prosecute Pandemic Relief Fraud To Safeguard Funds For All Eligible Americans”
Recognized by the National Whistleblower Center, Tracie Burke is Louisiana author of Motion to Quash. She can be reached at tracie@motiontoquash.org. Motion to Quash LLC successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.
1. 59.008 – Disaster Assistance Loans
2. 59.073 – Paycheck Protection Loan Program (PPP)
3. 59.072 – Economic Injury Disaster Loan Emergency Advance
RS 14:26 SUBPART E. INCHOATE OFFENSES §26. Criminal conspiracy A. Criminal conspiracy is the agreement or combination of two or more persons for the specific purpose of committing any crime; provided that an agreement or combination to commit a crime shall not amount to a criminal conspiracy unless, in addition to such agreement or combination, one or more of such parties does an act in furtherance of the object of the agreement or combination.B. If the intended basic crime has been consummated, the conspirators may be tried for either the conspiracy or the completed offense, and a conviction for one shall not bar prosecution for the other.
False Claims Act (FCA), 31 U.S.C. §3729 – 3733
During the 2021 Regular Session, Louisiana lawmakers passed SB4 by Senator Ed Price, which eliminates certain aggregate campaign contribution limitations. (8/1/21) Current Status: Signed by the Governor – Act 428
Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of motiontoquash.org. Motion to Quash LLC successfully promoted legislation that supports the Anti-Money Laundering Act of 2020. They also promoted amendments to the Whistleblower Protection Act. Please Support journalism in the public interest. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019. NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world.
