Water cooler conversations are where the real discussions are happen, where employees share all kinds of corporate gossip, myths and legends, inaccurate scientific opinions, indiscreet personal anecdotes, or outright lies. And, apparently, even how to commit fraud. How else could hundreds of state employees from 13 different state agencies have illegally taken $7 million in COVID-19 federal funded loans. And the Office of the Executive Inspector General (OEIG), which is charged with investigating allegations of misconduct within state government, has found that more than 60% of those implicated to date worked for the Illinois Department of Human Services (DHS).
In most of these cases, the employees from DHS referred to third parties who then applied for the Paycheck Protection Program (PPP) loans on their behalf. For instance, Shanythia Anderson began working as a mental health technician for the Illinois Department of Human Services in 2020. Anderson admitted to the OEIG that she allowed a third party to apply for a PPP loan on her behalf with information that was completely inaccurate. In exchange for this service, Anderson shared half of her loan proceeds, $10,000, with the third party fraudster. Anderson worked at the Ludeman Development Center in Forest Park, where at least 36 other employees were accused of fraudulent PPP loans. Maybe limit time at the water cooler to just gossip and not exchange fraudsters contact information?
Shout out to the OEIG in its tireless fight against fraud. OEIG found multiple cases of PPP fraud in other Illinois State Departments — including 31 cases in the Department of Corrections, 27 cases in the Department of Children and Family Services, 10 cases in Pace, and eight in the Department of Healthcare and Family Services.
Today’s Fraud of The Day is based on article “Illinois watchdog uncovers at least $7.2M in PPP fraud by state employees” published by Capital News Illinois on November 29, 2024.
A state watchdog has identified at least $7.2 million in fraudulent claims and more than 275 instances of misconduct by state employees accused of bilking a federal program designed to help businesses during the COVID-19 pandemic.
Since 2022, the Office of the Executive Inspector General has been investigating allegations that state employees fraudulently claimed Paycheck Protection Program loans for small businesses they didn’t disclose or entirely fabricated. State workers may engage in secondary employment, but only if it’s disclosed and permission is granted.