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More Than $200 Billion in COVID-19 Aid May Have Been Stolen, Federal Watchdog Says

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More than $200 billion may have been stolen from two large COVID-19 relief initiatives:

According to new estimates from a federal watchdog looking into federally funded programs that assisted small businesses survive the worst public health crisis in more than a century, more than $200 billion may have been stolen from two significant COVID-19 relief initiatives.

The figures revealed on Tuesday by the U.S. Small Business Administration inspector general show how much more vulnerable the Paycheck Protection and COVID-19 Economic Injury Disaster Loan programs were to fraudsters than the office’s earlier estimates. This was especially true during the early stages of the coronavirus pandemic.

The inspector general’s report said “at least 17 percent of all COVID-EIDL and PPP funds were disbursed to potentially fraudulent actors.” According to the report, the COVID-19 Economic Injury Disaster Loan Program fraud estimate is more than $136 billion, or 33% of the program’s overall budget. The inspector general estimated that the Paycheck Protection fraud cost $64 billion.

A senior SBA official disputed the new numbers in comments that were included with the report. SBA’s interim associate administrator for capital access, Bailey DeVries, stated that the inspector general’s “approach contains serious flaws that significantly overestimate fraud and unintentionally mislead the public to believe that the work we did together had no significant impact in protecting against fraud.”

The COVID-19 disaster loan program and the Paycheck Protection program both had fraud estimates of $86 billion and $20 billion, respectively, by the SBA inspector general.

According to a June 13 AP report, scammers and swindlers may have stolen about $280 billion in COVID-19 emergency aid, and another $123 billion was lost or misused. The two SBA programs and another to provide unemployment benefits to workers suddenly out of work due to the economic upheaval caused by the pandemic account for the majority of the potential losses. President Joe Biden took over the three projects that were started by the Trump administration. The total loss estimated by AP amounts to 10% of the $4.2 trillion in COVID relief aid that the US government has already paid out.

The amount of potential fraud that the federal government has now disclosed is $276 billion, which is consistent with the AP’s calculations.

During the first nine months of the pandemic, while President Donald Trump was in office, 86% of the fraud—or potential fraud—in the emergency loan programs occurred, according to Gene Sperling, a senior White House official in charge of overseeing pandemic relief spending.

“$200 billion is a very big number, but this, again, should be remembered as potential fraud,” Sperling said. “We think the amount of likely or actual fraud is significantly less, significantly under $100 billion, perhaps around $40 billion.”

But he added, “whichever it is, it’s unacceptably high.”

The SBA inspector general, Hannibal “Mike” Ware, said in a statement Tuesday that the report “utilizes investigative casework, prior (inspector general) reporting, and cutting-edge data analysis to identify multiple fraud schemes used to potentially steal over $200 billion from American taxpayers and exploit programs meant to help those in need.”

Ware, in an interview with The Associated Press earlier this month, said these latest fraud figures won’t be the last ones issued by his office.

“We will continue to assess fraud until we’re finished with the investigations on these things,” Ware said. That could be a long while. His office has a backlog of more than 90,000 actionable leads into pandemic relief fraud, which amounts to nearly a century’s worth of work.

The SBA published a report on its own anti-fraud policies on Tuesday. The report details “the effective measures added to fight fraud and hold bad actors responsible,” according to an email statement from the agency’s administrator, Isabella Casillas Guzman.

SBA previously told The Associated Press the federal government has not developed an accepted system for assessing fraud in federal programs. Previous analyses, the agency said, have pointed to “potential fraud” or “fraud indicators” in a manner that conveys those numbers as a true fraud estimate when they are not. For the COVID-19 Economic Injury Disaster Loan program, the agency said it’s “working estimate” found $28 billion in likely fraud.

According to Larry Turner, inspector general for the Labor Department, fraud in pandemic unemployment assistance programs has reached $76 billion. That is a reasonable guess. According to his testimony, an additional $115 billion was inadvertently distributed to individuals who weren’t eligible for the benefits.

In order to combat widespread fraud, the Biden administration implemented stricter regulations, including the use of a “Do Not Pay” database. Additionally, Biden recently put forth a $1.6 billion plan to increase law enforcement’s capacity to pursue pandemic relief scammers.

Bob Westbrooks, a former executive director of the federal Pandemic Response Accountability Committee, said in an interview the $200 billion number is “unacceptable, unprecedented and unfathomable.” Westbrooks published a book last week, “Left Holding the Bag: A Watchdog’s Account of How Washington Fumbled its COVID Test.”

“The swift distribution of funds and program integrity are not mutually exclusive,” Westbrooks said Tuesday. “The government can walk and chew gum at the same time. They should have put basic fraud controls in place to verify people’s identity and to make sure targeted relief was getting into the right hands.”

According to John Griffin, a finance professor at the University of Texas at Austin’s McCombs School of Business, the fraudulent payouts have consequences.

In a recent paper, Griffin and colleagues claimed that fraud in pandemic relief drove up home prices.

Even after adjusting for other variables that affect home prices such as land supply, prior house price growth, and the ability to telework, the study found that people who fraudulently obtained Paycheck Protection loans were more likely to purchase a home than people who obtained legitimate loans and that housing prices increased by an average of 5.7 percentage points in ZIP codes with high levels of fraud during the pandemic. That would add $22,800 to a house worth $400,000.

Griffin said Tuesday that the study also discovered rises in consumer spending in ZIP codes where people had received significant amounts of fraudulent money, which may have fueled inflation more generally.

“If you paid too much for your house because fraudsters pumped up the house prices in your ZIP code and then your house price ends up going down, you could be the victim of an unintended consequence of fraud,” he said in an interview. “It’s another reason why we should care about fraud.”

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Government Accountability

Bipartisan House Task Force to Investigate Assassination Attempt on Donald Trump

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In a rare display of unity, House Speaker Mike Johnson and House Democratic Leader Hakeem Jeffries announced their joint support for the creation of a bipartisan House Task Force to investigate the attempted assassination of 2024 presidential nominee Donald Trump. The task force will consist of seven Republicans and six Democrats.

“The security failures that allowed an assassination attempt on Donald Trump’s life are shocking. In response to bipartisan demands for answers, we are announcing a House Task Force made up of seven Republicans and six Democrats to thoroughly investigate the matter,” said Speaker Johnson and Leader Jeffries in a joint statement. “The task force will be empowered with subpoena authority and will move quickly to find the facts, ensure accountability, and make certain such failures never happen again.”

According to Speaker Johnson’s office, the House will vote on a resolution this week to formally establish the task force and appoint its members. The task force will have the full investigative authority of the House of Representatives, including the power to issue subpoenas.

The primary objective of the task force will be to investigate the circumstances surrounding the assassination attempt, identify security lapses, and hold accountable those responsible. The task force will also be tasked with making recommendations for reform to relevant government agencies and proposing any necessary legislation to implement those reforms.

The formation of this task force highlights the urgency and seriousness with which Congress views the attempted assassination of a presidential candidate. By working together, both parties aim to ensure that such a security breach never happens again and to reinforce the integrity of the electoral process.

As the House prepares to vote on the resolution, the nation will be watching closely to see how the investigation unfolds and what steps will be taken to address the security failures. The bipartisan nature of the task force underscores the commitment of both parties to uncover the truth and protect the democratic process.

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Biden Crime Family

Justice Department Finds Transcripts They Previously Denied Existence of in Biden Classified Material Investigation

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In a significant development, the Justice Department revealed to a federal judge late Monday that it possesses transcripts of President Joe Biden’s conversations with a biographer, contradicting earlier denials. These transcripts are related to the recently concluded criminal investigation into Biden’s handling of classified materials before he became president.

The special counsel, Robert Hur, issued a report in February describing Biden as “a well-meaning, elderly man with a poor memory.” This report has prompted a surge of Freedom of Information Act (FOIA) requests and lawsuits aimed at obtaining records related to Hur’s investigation. These requests have come from various news outlets and conservative groups seeking to scrutinize Biden’s mental acuity and fitness for the presidency.

Concerns about Biden’s cognitive abilities were exacerbated by a poor debate performance against Donald Trump, leading Biden to announce on Sunday that he would not seek reelection. It remains unclear how his exit from the race will affect the Justice Department’s handling of the materials from Hur’s investigation.

The Justice Department has argued that releasing the audio of Biden’s interviews would violate his privacy, potentially lead to abuses like deepfakes, and discourage other witnesses from agreeing to recorded interviews. Biden has asserted executive privilege over these recordings to prevent House Republicans from holding Attorney General Merrick Garland in contempt of Congress for refusing to release them.

During a hearing last month, DOJ lawyers informed U.S. District Judge Dabney Friedrich that processing the audio files of Biden’s interviews with writer Mark Zwonitzer would be highly time-consuming. They claimed that the recordings spanned 70 hours and reviewing audio for classified material is more challenging than reviewing written material.

Justice Department lawyer Cameron Silverberg stated at a June 18 hearing that no transcripts from the special counsel existed. However, Silverberg’s recent court filing revealed that the DOJ had found six electronic files, consisting of 117 pages of verbatim transcripts, created by a court-reporting service from Biden’s discussions with Zwonitzer. Some of these conversations contained classified information, but DOJ policy barred pursuing charges against a sitting president.

In an unexpected reversal, the Justice Department reached out to Robert Hur directly after initially resisting requests from the Heritage Foundation to contact him about materials he used for his report. Hur confirmed he relied on the Biden-Zwonitzer audio recordings and a portion of Biden’s handwritten notes regarding a memo about Afghanistan.

Judge Friedrich has scheduled a hearing for Tuesday morning to address these developments. The Justice Department has indicated it will discuss with the parties seeking access to Hur’s materials whether Biden’s notes should also be processed for potential release.

The Justice Department’s admission of the existence of transcripts in the Biden classified material investigation marks a crucial turn in the ongoing scrutiny of Biden’s handling of classified information. As legal proceedings continue, the implications for transparency, presidential privacy, and the political landscape remain to be seen.

SOURCE: POLITICO

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Leaked Emails Expose BBC’s Unverified Reporting and Political Bias

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In a startling revelation, newly leaked internal emails from BBC correspondent Rami Ruhayem have unveiled serious allegations against the British Broadcasting Corporation (BBC). The emails suggest that the BBC has been broadcasting news without verifying claims or seeking evidence, raising concerns about journalistic integrity and ethical practices within the organization.

The leaked emails highlight a pattern of unverified reporting, particularly concerning coverage of the conflict in Palestine. Ruhayem, a Beirut-based correspondent, criticized the BBC for airing sensational stories about alleged atrocities committed by Hamas fighters without proper verification. These unsubstantiated claims were broadcast repeatedly, despite the lack of concrete evidence.

In one instance, Ruhayem detailed how graphic allegations about Hamas fighters were allowed to pass unchallenged on air. “From the start, it was evident that unverified claims of the most atrocious acts by Hamas fighters against Israelis were being circulated and repeated at the highest levels,” Ruhayem wrote. He pointed out that BBC presenters often failed to ask for evidence or clarify that the claims had not been verified.

The emails also accuse the BBC of sensationalizing news stories to push a specific political agenda. Ruhayem suggested that the unverified allegations were part of a broader strategy to garner political support for Israel’s actions. “The BBC’s approach to reporting has contributed to shaping public perception in a way that supports Israel’s actions,” he stated.

Ruhayem’s emails describe how the repetition of unverified and sensational claims served to reinforce extreme portrayals of Israel’s enemies. This biased coverage likely influenced public opinion and political discourse, aligning with Israeli propaganda efforts.

The leaked correspondence reveals deep-seated grievances among BBC staff regarding the organization’s editorial direction. Ruhayem noted that despite numerous evidence-based critiques from staff members, BBC management failed to address these concerns. Instead of fostering thorough examination and inclusive discussions, the management opted to continue the problematic editorial practices.

In an email dated May 1, 2024, Ruhayem wrote to BBC Director General Tim Davie and several departments, detailing the editorial failings. He emphasized the need for mechanisms to ensure accurate and ethical reporting, which he claimed were ignored by the management.

The allegations of journalistic malpractice have significant implications for the BBC’s reputation and credibility. Broadcasting unverified information and sensationalizing stories undermine the core principles of journalism: accuracy, fairness, and impartiality. These practices not only misinform the public but also erode trust in the media.

The leaked emails call into question the integrity of the BBC’s news coverage and highlight the need for rigorous journalistic standards. As the organization faces scrutiny, it must address these issues to restore its standing as a trusted news source.

The bombshell leaks from Rami Ruhayem’s emails expose serious flaws in the BBC’s reporting practices, revealing a troubling pattern of unverified reporting and political bias. As the media landscape continues to evolve, maintaining journalistic integrity and accountability remains paramount. The BBC must take urgent steps to rectify these issues and uphold the highest standards of journalism.

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