Secret Service personnel said the agency has returned to the Small Business Administration (SBA) approximately $286 million in fraudulently obtained Economic Injury Disaster Loans (EIDL).
“The Secret Service is dedicated to safeguarding the integrity of the nation’s financial systems against fraud and holding those responsible to account for their criminal activity,” Secret Service Assistant Director David Smith said. “By aiding in the return of nearly $2.3 billion in stolen funds over the last 30 months, our workforce has demonstrated a clear and firm commitment to the vitality of American businesses across the country.”
The funds were acquired via fraudulently submitted EIDL loan applications using fabricated or stolen employment and personal information. The agency’s Orlando, Florida, Field Office-initiated investigation showed conspirators deployed third-party payment system Green Dot Bank (GDB), the issuer of Green Dot debit cards, to conceal and move criminal proceeds.
Collaborating with GDB, the Secret Service identified more than 15,000 accounts used in the conspiracy and seized the $286 million contained in the fraudulent accounts.
“Through intentional collaborations like this, OIG will continue to ensure that taxpayer dollars obtained through fraudulent means will be returned to taxpayers and fraudsters involved face justice,” SBA Office of Inspector General (OIG) Inspector General Hannibal “Mike” Ware said. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the U.S. Secret Service and our many partners in law enforcement for their tireless dedication and focused commitment to seeing justice served.”
Since 2020 the Secret Service has seized more than $1.4 billion in fraudulently obtained funds while aiding the return of approximately $2.3 billion to state unemployment insurance programs.