Ricardo Ratia claims that As the company’s founder and executive director, he has put a strong emphasis on business growth, services, and goods with great operational quality. Ricardo Ratia has offered practical leadership, strategic guidance, and operations management for the business’ expansion.
Harvest Small Business Finance, LLC authorized a $20,833 Paycheck Protection Loan for Ricardo Ratia in Doral, Florida in April 2021.
The SBA reports that this loan is “Paid in Full”, which encompasses both repaid loans and loans that have been entirely excused from repayment following PPP criteria. The SBA last updated the loan’s status in January 2022.
You can help us put a stop to online scams before they grow too big and end-up ruining thousands of lives. A scam is a scam, doesn’t matter if it’s big or small. Now that this is out of the way, let’s get started with the review.
PPP Loan Fraud: What Is It? How Con Artists Stole $100+ Billion
In response to the Coronavirus crisis, which threatened to ruin millions of American businesses, the federal government made billions of dollars in help available through the Paycheck Protection Program (PPP).
But what had been a lifeline for honest companies soon became a popular target for con artists.
We look at 34 different data points when analyzing and releasing such reviews. Once the research on these data points is submitted, expert contributors reach out to the company’s customers and associates to get more insight into their operation. Finally, all the collected information is presented in the form of this expert review.
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For claiming $1.7 million in false PPP loans, Izzat Freitekh and his son Tarik were sentenced in one case to 4 and 7 years in prison, respectively.
But federal investigators are still barely scratching the surface of the PPP loan fraud problem.
It’s anticipated that dubious businessmen and international crime networks applied for PPP loans totaling up to $100 billion in funding.
PPP loan fraud is reportedly one of the biggest frauds in history. But what precisely is PPP loan fraud? And could it endanger you?
This tutorial will define PPP fraud, describe how it occurs, and describe what happens to con artists who are discovered abusing the program. We’ll also talk about how identity thieves can exploit your identity to steal money from PPP loans in your name and put you on the DOJ’s list.
What is Investment Fraud?
A Ponzi scheme is a fraudulent investment where returns are paid to older investors using the funds of new investors. The organizers offer high returns with little or no risk.
The Paycheck Protection Program: What Is It?
The CARES Act, also known as the Coronavirus Aid, Relief, and Economic Security Act, is what gave rise to the federal Paycheck Protection Program (PPP). By offering forgiven loans to pay bills and wages, the aim was to assist businesses in maintaining their personnel.
The PPP, which operated sporadically between April 2020 and May 2021, was a lifeline for business owners concerned about having to fire their devoted staff members and deprive them of their salaries and health benefits during a pandemic.
Up to a $10 million maximum, businesses could apply for PPP loans from the federal government through commercial banks.
Candidates were expected to meet particular eligibility standards and adhere to stringent guidelines and restrictions when using PPP funding (such as for payroll expenses). Any expenditure that exceeds such limits may result in involvement from the FBI, IRS, or DOJ.
However, it was incredibly difficult to keep track of who received PPP loans and how they were used due to the overwhelming number of applications.
To make matters worse, Congress voted to permit smaller financial technology (or fintech) companies to offer PPP loans in their haste to get cash into the hands of lawful business owners. It is now becoming evident that these fintechs were the source of a large chunk of the 1.4 million bogus PPP loans.
Surely, Ricardo Ratia might have been a part of that group too.
Paycheck Protection Program Fraud: How Does It Operate?
PPP fraud is the misuse of a loan program created to help millions of Americans weather the financial storm.
PPP loan fraud is more specifically when a person or organization provides fraudulent information on a PPP loan application or when attempting to validate PPP loan forgiveness.
Many people are enticed to lie through their teeth to gain money from the government they would not have to repay because PPP loans are forgiven.
In addition to making fraudulent remarks, there are various ways to conduct PPP fraud:
-“Loan stacking” is the practice of con artists who apply for PPP loans from several lenders.
-Use the proceeds of PPP loans for improper or forbidden uses.
-Giving misleading information during fraud investigations or PPP loan audits.
Scams on social media advertise these techniques as simple ways to receive funding from aid initiatives.
Criminal charges may result from lying or omitting crucial facts during the PPP loan application process. This includes committing wire fraud, bank fraud, and financial institution fraud.
Do you think Ricardo Ratia might face criminal charges? Or is he innocent?
Can Ricardo Ratia Go to Jail?
PPP loan fraud may not initially appear to be a significant problem. The program was created to aid companies in surviving the epidemic. What does it matter if some of the money didn’t end up where it was intended to?
Bank and lender PPP loans were intended to be forgiven. However, engaging in fraud does not permit one to simply transfer funds intended for coronavirus aid into one’s bank accounts.
The shocking reality is that billions of dollars in taxpayer funds intended to support hard-working Americans instead went to con artists looking to make a fast buck. Sometimes the con artists were even overseas hackers and identity thieves.
Here are a few details regarding the enormous scope of PPP fraud:
-Over 15% of PPP loans had at least one possible fraud red flag. According to a research working paper quoted by The New York Times, about 1.8 million of the 11.8 million loans made through the PPP displayed fraud-related indicators.
-According to researchers, $76 billion in PPP loan funds were fraudulently obtained. That amounts to just under 10% of the program’s estimated $800 billion budget.
-The biggest percentage of dubious PPP loans was among fintech lenders. Around 29% of all PPP loans were made by financial lenders, sometimes known as fintech, however, more than 50% of these borrowers received dubious loans.
In the end, these figures are merely approximations of the amount that borrowers were not entitled to receive. It’s unlikely that PPP fraud will ever be fully quantified.
What Happens to Scammers of PPP Loans?
You are cheating the Treasury Department and the federal government by taking out a bogus PPP loan. They aren’t treating these infractions lightly, you can be certain of that.
Ricardo Ratia is facing allegations of committing PPP loan fraud as well.
Multiple pandemic fraud cases that targeted relief programs like the PPP and Unemployment Insurance (UI) programs have drawn harsh retaliation from the U.S. federal government.
The Department of Justice has publicly stated as of March 26, 2021:
-Charged 474 defendants with crimes related to fraud schemes that sought to defraud the US government and unwitting people of over $569 million.
-22 more people have been accused of participating in a $11 million PPP fraud conspiracy.
-A 46-year-old man was given a two-year prison term for committing a COVID-19 relief fraud scheme.
-It was revealed that a Texas man admitted to receiving loans with government guarantees totaling more than $1.6 million.
Even famous people have been exposed for fraudulent PPP loan schemes, and in some cases even charged. From Kanye West (for his apparel and footwear company, Yeezy), to Reese Witherspoon (for her clothing brand, Draper James), celebrities are represented on this list.
While other celebrities have been discovered using their PPP loans fraudulently, those famous people have not.
Mo Fayne, a rapper and former Love & Hip Hop: Atlanta star, received a 17.5-year prison term and a $4.4 million reparation order. Josh Bellamy of the NFL was detained for taking part in a PPP fraud scam where people requested for loans totaling more than $24 million.
PPP loan fraud occurs on an astounding magnitude. However, this is what Nicholas L. McQuaid, acting assistant US attorney general for the criminal division of the Justice Department, had to say:
“My advise to anyone considering taking advantage of the global pandemic to con and steal from hardworking Americans is to just not do it. We will track you down and use all legal means to prosecute you, no matter who or where you are.
Can Criminals Commit PPP Loan Fraud Using Your Identity?
The use of stolen identities by con artists to hide their trails while submitting false loan applications is one of the most terrifying parts of PPP fraud.
Scammers from Russia, China, and Nigeria have applied for billions in fake benefits using stolen identities. Additionally, the PPP program has prompted nearly 750,000 referrals of suspected identity theft to the Small Business Administration (SBA) Office of Inspector General.
The following describes how hackers abuse benefit programs:
-Criminals buy a lot of personal information from the Dark Web, including names, addresses, birthdays, and Social Security numbers. A recent data breach may also be used as a source of theft.
-Then, fraudsters apply for phony loans or unemployment benefits by taking advantage of already vulnerable web platforms.
-Some hacker organizations would use a brute-force attack using phony online claims to overwhelm internet systems and steal millions.
-Other hackers took advantage of contractor-specific schemes that offered retroactive relief. In such circumstances, a single identity theft might result in the theft of up to $20,000 in false relief monies.
-Many hackers sent money to Bitcoin and beyond the country via online payment platforms like Cash App or Venmo.
According to some experts, pandemic-related fraud caused tens of billions of dollars to be moved outside the nation.
Ricardo Ratia PPP Loan Review: Conclusion
As you you have read about the Ricardo Ratia PPP Loan fraud and the PPP scams that took place in the US.
All the readers are requested to report such scams to the authorities.
In case you are confused about how to do it, read the steps given below-
How to report fraud with the paycheck protection program
Fraud involving PPP loans and government benefits damages us all. Obtaining the genuine financial assistance you require becomes much more challenging if someone takes out fake loans in your name.
You can get in touch with the SBA by calling the Office of the Inspector General (OIG) at 800-767-0385 if you’ve been the victim of identity theft that resulted in PPP fraud or if you know someone who took advantage of the program.
Even though the Paycheck Protection Program is gone, there will undoubtedly be more instances of PPP fraud. Some of them might even be in your name if someone stole your identity.
Protect your critical information with vigilance. Act quickly if you notice any indicators of identity theft so that con artists cannot cause too much harm. Consider identity theft protection as an additional measure of safety for you and your family.
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