9 Chicago more cops busted in PPP loan fraud probe, inspector general says
Chicago Inspector General Exposes Fraudulent PPP Loans Obtained by City Workers
Chicago’s inspector general recently concluded investigations in the first quarter, uncovering instances of fraudulent activity by city workers who obtained forgivable loans under the Paycheck Protection Program (PPP) during the COVID-19 pandemic.
According to the first-quarter report released by the Office of the Inspector General, nine investigations were conducted, revealing that several Chicago police officers and an aldermanic employee were involved in obtaining fraudulent PPP loans.
One case involved a Chicago Police Department (CPD) officer who fraudulently obtained two PPP loans totaling $41,666 before joining the department. The officer then submitted false filings to secure loan forgiveness and lied about the matter during the CPD application process. Subsequently, the officer resigned while under investigation, and CPD agreed to add them to the city’s do-not-hire list as per the OIG’s recommendation.
Additionally, eight other CPD officers were found to have engaged in PPP loan fraud, with amounts ranging from $20,000 to $41,666. The investigations revealed that these officers applied for multiple loans and falsified information to obtain forgiveness.
In a separate case, an aldermanic employee obtained a fraudulent PPP loan of $20,833 and falsely claimed identity theft to avoid repayment. The employee also submitted a false police report and misled investigators during the inquiry. OIG recommended the employee be terminated and added to the do-not-hire list, but the alderman failed to respond promptly.
Despite receiving OIG’s recommendations, the alderman acknowledged the seriousness of the situation and stated that steps were being taken to ensure compliance with policies and expectations moving forward.
It is crucial for city employees to adhere to the highest standards of integrity and professionalism, especially when dealing with federal aid programs like the PPP. The OIG’s investigations serve as a reminder of the importance of transparency and accountability in public service.
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