DOGE Senator Introduces Bill to Go After Covid Fraudsters

A self-described “DOGE” senator is taking steps to keep COVID-19 loan fraudsters and debtors on the government’s radar, in response to an oversight official’s warning.

Key Facts:

• Sen. Joni Ernst of Iowa introduced a bill to extend the authority of the Special Inspector General for Pandemic Recovery (SIGPR).
• The SIGPR’s letter to Ernst cited $1.27 billion in reported losses and an uptick in debtors not even paying interest.
• About 130 potential defendants have been identified for possible investigations.
• Ernst’s measure aims to keep the SIGPR alive through 2030 and expand its powers over Small Business Administration (SBA) programs.

The Rest of The Story:

Government watchdog Brian Miller sounded the alarm about “alarming” default rates on loans designed to help small businesses during the height of the pandemic.

In his letter, he stated that many recipients of the Main Street Lending Program and the Direct Loan Program have not met their payment obligations.

Ernst believes fraudulent borrowers exploited programs like the Paycheck Protection Program (PPP) for personal gain.

She is concerned that billions in taxpayer dollars could be lost if there is no watchdog with the resources to pursue investigations.

Without the SIGPR’s oversight, she worries the worst offenders will slip away.

Her bill, the Complete COVID Collections Act, would allow the SIGPR to operate beyond September, given that it is already winding down.

It would also expand the inspector general’s reach to other SBA loans.

Additionally, the Treasury Department would be pushed to track and collect on smaller loans as closely as it does large ones.

Ernst’s plan would require the Department of Justice to give regular updates to Congress on prosecuting fraud cases.

With Republicans increasingly concerned about national debt, Ernst’s proposal aims to stop con artists who used fake documents or other schemes to steal public funds.

The Bottom Line:

Sen. Ernst says ignoring COVID-era loan fraud would waste billions in taxpayer money.

Her proposed bill attempts to close loopholes and hold fraudsters accountable by giving inspectors and law enforcement enough time to wrap up investigations.

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If enacted, the measure would ensure that dishonest borrowers can still be tracked down and forced to repay stolen funds.