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Criminal Defense Blog


Investigation Reveals Cook County Fraud With Federal Funds

Any time a company—whether in the public or private sector—uses federal funds, there are stipulations on how to use that money and how to pay it back. If employees and managers fail to stick to those stipulations, there may be cause for fraud allegations.

As Chicago WBEZ reports, an ongoing investigation into fraud in Cook County has caused six workers to resign, with more awaiting disciplinary action.

Applying for the Paycheck Protection Program

The federal government issued several PPP loans over 2020 and 2021 to small businesses and other organizations. The main purpose of these loans was to help struggling businesses stay afloat.

According to reporting, an investigation into 26 cases in the Chicago Park District revealed that many people applied for the loans. However, they did not follow up with the loan’s requirements after receiving the funds.

Specifically, some employees obtained PPP loans but provided no documentation to validate their business. Others applied for it without owning a business in the first place.

The government has forgiven many of these PPP loans. Investigators insist that proving the fraud is important so that agencies do not employ people who have defrauded the government.

Fraud and loans

It is easy for any manager or employee to lose themselves in the details of complex business loans. Messy documentation may lead to unwarranted suspicion. Even allegations of fraud have their impacts on reputations in the marketplace.

Those applying for federal loans may wish to further investigate the details of their unique situation and how to defend against fraud allegations over business loans.

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