When economic talks collapsed again in early September, Senator Marco Rubio, R-Fla., Chairman of the Senate Committee on Small Business and Entrepreneurship, urged Jamie Dimon, CEO of JPMorgan Chase, to answer multiple questions about bank teller reports by September 23 to potentially illegal Conduct related to the paycheck protection program and EIDL funds (Economic Injury Disaster Loans) were involved.
Published reports state that JPMorgan Chase is investigating alleged employee abuse of PPP and EIDL funds.
JPMorgan said there have been “cases of customers abusing paycheck protection loans, unemployment benefits, and other government programs,” and some “employees also fell short,” Bloomberg said in a memo to senior executives at the bank .
The company said the behavior was “non-standard and may even be illegal”. “We are doing everything we can to identify these cases and, if necessary, to work with law enforcement agencies,” Bloomberg reported in the memo.
Rubio told Dimon that he was “alarmed” by the reports.
“Both the PPP and the enhanced EIDL programs should provide critical economic support to small businesses during this tremendous need,” wrote Rubio. “Financial institutions like yours are at the forefront of providing PPP support. Allegations that financial institution employees have used either the PPP or EIDL programs for their own benefit need to be fully investigated. “
The PPP has “provided over $ 525 billion in critical assistance to more than 5.2 million businesses and saved an estimated 50 million jobs”. the senator wrote.
While Rubio Dimon said he appreciated his previous response in May that JPMorgan “did not set certain priorities [PPP] Loan applicants through others, “the senator wanted answers to:
• The specific allegations that JPMorgan is investigating;
• Any measures JPMorgan has taken to mitigate potential fraud or abuse of PPP and / or EIDL funds.
• Any action JPMorgan has taken to notify the SBA and / or federal law enforcement agencies of potential fraud or abuse of PPP and / or EIDL funds. and
• All internal controls distributed to the bank’s staff in relation to the PPP and / or EIDL program.
More than 50 people allegedly committed fraud to get money from the PPP have been charged with criminal charges by the Justice Department’s Fraud Division, Assistant Attorney General Brian Rabbitt said in a September 10 speech at the PPP Criminal Fraud Enforcement Action press conference in Washington.
Stimulus talks Falter
The Senate GOP’s new “targeted” COVID-19 relief bill, which the Senate Democrats blocked on Sept. 10, included a “second round” of PPP funding.
Senate Majority Leader Mitch McConnell, R-Ky., When the bill was introduced on Sept. 8, said it would focus on “some of the most pressing health, education and business issues.”
After the September 10 vote, McConnell tweeted, “Every Senate Democrat has just voted against hundreds of billions of dollars in COVID-19 relief. They blocked money for schools, tests, vaccines, unemployment insurance, and the paycheck protection program. Their goal is clear: no help to American families before the elections. “
In pre-vote comments, Chuck Schumer, chairman of the Senate Minority, DN.Y., said the Senate is “going to get a pretty pointless vote on the newest, highly partisan Republican emaciated COVID relief bill.”
McConnell “claims that his bill is an attempt at a bipartisan solution,” continued Schumer. “But of course the bill was drafted entirely by Republicans – no input from Democrats – and thrown to the ground.”