Texas: A group of around 14 people have been charged in a huge fraud scam involving a Covid -19 pandemic relief programme in the state of Texas, the United States, including several business owners and staff of Indian descent.
The defendants were apprehended throughout Texas, California, and Oklahoma in the investigation, which is said to be the largest the Pandemic Response Accountability Committee (PRAC) Fraud Task Force has looked into thus far.
The accused are alleged to have defrauded the Paycheck Protection Program (PPP), a financial programme introduced during the Covid pandemic, as well as various financial institutions, out of over $53 million in loan proceeds.
Leigha Simonton, the US attorney for the northern district of Texas, emphasised the gravity of the accusations, saying, "Defrauding the government is an insult to American taxpayers. Fraud against the government during a pandemic, when millions of diligent business owners were struggling to pay their bills, is adding salt to the wound.”
“These defendants allegedly conspired to steal tens of million of dollars from the Paycheck Protection Program - funds which could have helped legitimate businesses pay their bills and keep their employees afloat.”
The 14 individuals face a 16-count indictment, with charges including conspiracy to commit bank fraud, wire fraud, making false statements, and conspiracy to commit money laundering. The accused allegedly submitted fraudulent PPP loan applications, inflating payroll expenses by manipulating bank statements and tax forms.