SBA Loses Billions

Chris exposes the shocking failure of the Small Business Administration (SBA) to implement fraud detection measures before distributing nearly $1 trillion in COVID relief. Highlighting gaps in the Paycheck Protection Plan (PPP) and EIDL programs, Markowski reveals how fraudulent claims were approved without proper checks, resulting in massive taxpayer losses. The lack of oversight has fueled inflation and left taxpayers footing the bill. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Yeah, this is just gross and it's another CI Told
You So a moment. The Small Business Administration. Well they
didn't bother check. Ay you want a loan? Sure, no, no, no,
we don't need to look at paper. We don't need
no paperwork here. Nah, we'll just give you a loan.

(00:36):
We'll just hand out money. They failed to implement any
fraud detection measures until after it had already distributed hundreds
of billions of dollars in COVID relief. Another CI told
You So moment. We said this was going to be
an absolute poop show, and that's what it was. What

(00:56):
do they care? What do they care? I mean, we're
the expayers, were the ones that pay for all of this.
It's coming out of our pockets. I gotta pay my
I maybe throw open my mouth. I just had to
pay my quarterlyes knowing that, you know, most of this
money is going to be flushed down the toilet in
some way, shape, matter, or form anyway. The Government Accountability

(01:20):
Office put out a report again any any big news
on this anywhere, of course, not gaps in the SBA's
fraud detection process for both the Paycheck Protection Plan the
PPP program and the ei DL program, the Economic Injury

(01:43):
Disaster Loan Program. To detect they had a process. They
had a process which consisted of screening applications to find
potential inconsistencies, data analytics to examine data anomalies, human led

(02:03):
reviews of files with data anomalies, and referrals of likely
fraud to the agency's Expent Inspector General. They didn't implement
any of that. Crop that they didn't do a damn thing.
They said that they were that they didn't do a
damn thing. The fraud was as plain as day, countless

(02:24):
examples of people that didn't even have a business. Maybe
they just automatically they started one all of a sudden,
claiming they had all of these employees, nothing to back
it up, yet they were getting moaned money. Now, none
of none of the fraud detection came into play until
after over half a trillion dollars, almost a trillion dollars

(02:46):
was already out the door. Oh, now you're going to check. Now, now,
now you're going to check that there's no fraud or
waste that's involved. You know, it's bothers me. It is again,
I again, I I don't mind. I know again, I
know who our clients are. But we have all sorts
of rules and things that we have to adhere to,

(03:10):
making sure anti money laundering this and making sure that
you're not dealing with bad actors. Again, it's not a
problem for us at Markowski Investments. You would think that, gee,
I don't know, you know, this is this is taxpayer money.
This is taxpayer money, this is this is a situation
where you're trying to get money out the door. And

(03:30):
it was great, Mark, I mean, the the opportunity for
fraud was just ginormous. You could have checked, oh oh absolutely,
you could have done this. You could have done this
through reputable, reputable banks that actually would have paid attention
to what was going on. Some did, some did, but

(03:53):
they knew that most didn't. This grand effort to juice
the economy up and again people think, oh, oh, look
at all the cash I have all of a sudden, Yeah,
and look what everything costs because of inflation, because of
all of this money printing and getting cash out the
door again, embarrassing, gross, disgusted. There's not a day that

(04:15):
goes by, Not a day that goes by that I
don't feel like I got kicked in the cornice. Not
a day with all of these ripoffs and scams. Watch
dog on Wall street dot com