As the federal government intensifies its crackdown on COVID-19 relief fraud, social media platforms are buzzing with anxious admissions and warnings from those caught in the legal crosshairs.
At a Glance
- The Department of Justice (DOJ) has prosecuted 500 defendants for pandemic-era relief fraud as of March 2022
- Social media users are publicly admitting to PPP fraud and warning others
- At least 10% of the $793 billion in PPP funding is alleged to be fraudulent
- The DOJ has recovered or seized $1.4 billion in stolen funds
- False reports of a “PPP loan warrant list” have circulated on social media
Federal Crackdown Intensifies
The federal government is ramping up its efforts to prosecute COVID-19 relief fraud, with a particular focus on the Paycheck Protection Program (PPP). By March 2022, the Department of Justice had already prosecuted 500 defendants for pandemic-era relief fraud, a number that is expected to rise significantly as investigations continue.
Recent cases highlight the severity of the crackdown. Tyshion Nautese Hicks received a 12-year sentence for orchestrating a $30 million COVID unemployment benefits scheme, while Steven Cordell faces charges for allegedly receiving $247,822.51 in fraudulent PPP loans. Even organized crime groups have been implicated, with members of the California white supremacist gang SFV Peckerwoods facing prosecution for PPP fraud.
Be aware that criminals are attempting to exploit #COVID19 worldwide through a variety of scams. If you think you are a victim of a scam or attempted #fraud involving COVID-19, you can report it without leaving your home. Learn how: https://t.co/1G8b5BBqRn pic.twitter.com/4ht7aHx3aH
— U.S. Department of Justice (@TheJusticeDept) March 23, 2020
Social Media Confessions and Warnings
As the legal net tightens, some individuals caught up in PPP fraud are turning to social media platforms to express their regret and warn others. TikTok user J_Kyng_Enterprise has become a cautionary tale, publicly admitting to involvement in PPP fraud and issuing stark warnings to others contemplating similar actions.
“Yo … that PPP shit is real,” J_Kyng_Enterprise said on TikTok.
The user, known as Kyng, later added, “They got me man,” acknowledging the consequences of his actions. His candid admissions serve as a sobering reminder of the legal risks associated with fraudulent COVID-19 relief claims.
The Scale of Fraud and Recovery Efforts
The government distributed a staggering $793 billion in PPP funding, forgiving $763 billion of that amount. However, it is estimated that at least ten percent of these funds were obtained fraudulently. In response, the DOJ has been working diligently to recover stolen funds. The agency’s full 2024 report on the fraud can be found here.
As of April, U.S. Attorney General Merrick Garland reported that the DOJ has recovered or seized $1.4 billion in stolen funds. This figure, while significant, represents only a fraction of the estimated fraudulent claims, underscoring the ongoing nature of the recovery efforts.
Misinformation and Public Awareness
The heightened attention on PPP fraud has also led to the spread of misinformation. Social media platforms falsely reported the existence of a “PPP loan warrant list,” causing unnecessary panic. In reality, the list in question is Pro Publica’s PPP Tracker, which simply lists approved businesses and does not indicate any legal action or arrest warrants.
