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Originally Posted by pstation
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Did they run already?
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Blueacorn Took Only Minimal Steps to Prevent Fraud in Its Facilitation of Billions of Dollars in PPP Loans, While Abusing the Program to Enrich Its Owners
Fintech Blueacorn received over $1 billion in taxpayer-funded processing fees but spent little on fraud prevention and eligibility verification. Blueacorn transferred nearly $300 million in profits to its owners while only spending $8.6 million—less than one percent of the fees it received for its PPP work—on its fraud prevention program. Blueacorn also gave approximately $666 million to a marketing firm controlled by members of its senior leadership—almost 50 times more than the $13.7 million the fintech spent on eligibility verification to detect fraud. Blueacorn had only “one direct employee who assisted with processing PPP loan applications” for the 1.7 million loans it reviewed.