Photographer: Mark Kajlerich / Bloomberg
Photographer: Mark Kajlerich / Bloomberg
JPMorgan Chase & Co. discovered that some of its employees had improperly applied for and received covid-relief money, which, according to a person with knowledge of the disease, could be harmful to the U.S. by the epidemic.
All of these matters were linked to the Financial Injury Disaster Loan Program after the bank noted that a suspicious amount had been deposited in the verification of an employee-owned account. Is private. The findings on Tuesday conveyed an unusual all-staff message from JPMorgan that surprised many in the industry for the blatant admission of potential illegal acts by some people while not describing what they did.
The small business administration’s disaster loan program caused a rolling shutdown across the country due to the epidemic and many small businesses were in need of a cash lifeline. Unlike the Paycheck Protection Program, banks have not issued or overwritten disaster loans and grants. Instead, loans or grants came directly from SBA.
The findings of employee misconduct were widely accepted in the personal account of those who received professional assistance, the person said. SBA On July 22, banks were warned to keep an eye out for suspicious deposits or activity as part of the EIDL program.
The agency’s inspector general then pointed to evidence of fraud in the program, saying it identified 45 45.6 million in possible ibly duplicate payments in addition to in 250 million given to potentially ineligible recipients. Bloomberg Businessweek’s analysis of SBA data last month revealed icious 1.3 billion in suspicious payments.
Read more: Phantom companies have received more than 1 1 billion in aid
A spokesman for JPMorgan declined to comment.
The country’s largest bank sent a memo to about 256,000 employees on Tuesday in which senior leaders said they were investigating whether there were any employees. Helped people misuse assistance programs, including “Paycheck Protection Program loans, unemployment benefits and other government programs.” The pay firm said it recognizes behavior by customers who do not adhere to its principles and “may even be illegal” and that some employees, too, were low on ethical standards.
Paid leaders decided to send memos to highlight the widespread misuse of the relief programs they receive, the person said, and in the message asked employees to report any unethical activity they witnessed.
The bank has identified massive misuse of the EIDL program, while a small percentage of it is tied to bank employees, the source said. The bank said it had not found evidence of malpractice by employees related to the PPP program.
Small businesses have been administered Screaming To cover up the misuse of a loan program designed to reduce business mishaps, Wednesday, according to a Watchdog report. That assessment was based on internal emails received by the group, including one Noticed “Extensive presence of fraudulent application.”
Any advice on how Virus Relief Funds are used or misused? Write to us at [email protected], or follow the instructions to submit an anonymous tip https://www.bloomberg.com/tips/
– With the help of Zachary Mider
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